• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Obamacare's CLASS Act Collapses; White House Pulls Plug

    The Obama Administration notified Congress today that the CLASS Act — Obamacare’s long-term care insurance plan — is flawed, unsustainable, and unable to go forward.

    In a letter to Congress, Health and Human Services Secretary Kathleen Sebelius wrote that “Despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time.” CBS News reports:

    The law required the administration to certify that CLASS would remain financially solvent for 75 years before it could be put into place.

    But officials said they discovered they could not make CLASS both affordable and financially solvent while keeping it a voluntary program open to virtually all workers, as the law also required.

    Monthly premiums would have ranged from $235 to $391, even as high as $3,000 under some scenarios, the administration said. At those prices, healthy people were unlikely to sign up.

    That CLASS was unsustainable isn’t news. Brian Blase and John S. Hoff explain that “CLASS was poorly designed, and actuaries criticized it as being unsustainable well before the passage of Obamacare.” And in September, emails released by congressional investigators revealed that proponents of CLASS pushed to include it in Obamacare despite warnings that it would require either a sizable federal bailout or another insurance mandate, as Heritage’s Lachlan Markay reported. Nevertheless, Sebelius insisted that her department could fulfill the law’s sustainability mandate–that is, until today.

    Posted in Featured, Obamacare [slideshow_deploy]

    15 Responses to Obamacare's CLASS Act Collapses; White House Pulls Plug

    1. Bobbie says:

      Thanks Kathleen Sebelius, for not wasting more time trying to cover it up.

    2. Jesse Slome says:

      The cessation of efforts to implement the CLASS Act does not eliminate the financial long-term care tsunami about to impact American families and taxpayers who already bear much of the cost.
      Ignoring the problem will not make it disappear and we look forward to more realistic approaches that can help Americans face and address this issue.

      That said, Americans between the ages of 52 and 67 (the sweet spot for long-term care planning) really must take some personal responsibility or face the dire consequences. The American Association for Long-Term Care Insurance has 2 free consumer guides available at http://www.aaltci.org/long-term-care-insurance-co… and no sign in is required.

      Jesse Slome
      American Association for Long-Term Care Insurance http://www.aaltci.org

    3. mlmaston says:

      Here we go with the threats again.

    4. mlmaston says:

      Not at these prices…

    5. Steve says:

      Funny how this announcement comes out on a late friday afternoon. So let me get this straight. Obamacare cuts $500 billion from Medicare and now they are cancelling the long term care part of Obamacare. Message to old people. We will not need death panels. People will just be denied service and die.

    6. eddie333 says:

      LTC was never meant to be part of Obamacare as liberals do not care to sustain the lives of seniors and disabled folks of all ages. LTC was put in the bill to win support for Obamacare from the very people who will now be denied care during their time of need.

    7. evermyrtle says:

      Sounds like a no win situation, to me. GOODBYE Obama and all of your baggage!!!!!!!

    8. JSNH says:

      How is it that parts of this bill can be changed without going through Congress or making this

      How is it that parts of Obamacare can be arbitrarily changed and not have to go through Congress or automatically make this bill null and void?

    9. blondenblueeyed says:

      While you're at it why not just pull the plug on the WHOLE Obamacare bill. It is unconstitutional and will be
      devastating to this country. But then I think that's what this administration wants.

    10. Stirling says:

      I would ask if this announcement has something to do with the pending Supreme Court decision comming on Obamacare? I would summize that this administration would not just "cut" part of the plan without having an alterior motive in doing so. If the "mandate" is the crux of the problem, who is to say removing it before the Supreme court takes it up will allow the remainder of it to pass the court..

    11. Larry Tucker says:

      Obama should be impeached Eric Holder should be hung and Kathleen Sebelius should be raoed by a mongolian Idiot. This administration is making a joke of our judicial system………

    12. RichardH says:

      I didn't think you could pick and choose which parts of a bill that was already signed into law would be implemented and which parts would not. Imagine that applied to other laws. And wasn't the CLASS program meant to yield the greatest deficit savings on the entire bill? Seems like a bigger deal than the Administration would like us to believe. Still, if anything or anyone is taking this down, it's the Supreme Court.

    13. Helene Atha says:

      Obama et Cie continues down their rabbit hole singularity.

    14. curious says:

      Has the heritage foundation written anything about the individual mandate being authored by heritage foundation? And why you've changed (flip flopped on) your stance?

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×