The Solution: Health reform creates a new public insurance program

The Solution: Health reform creates a new public insurance program that covers long-term services that will help people stay in the community.
What Health Reform Does:„„
Health reform establishes the CLASS program, a voluntary public insurance program for long-term services. The program will start in 2011; the initial date to enroll has not been set. The program will be available to working adults. After a few years’ enrollment, individuals can stay in the program if they no longer work. There is a five-year vesting period. After that, enrollees who need long-term services will be eligible for a daily cash benefit. The benefit can be used to pay for services and supports such as home modifications that assist with continued community living.
The CLASS program will be fully financed by enrollee premiums, so it will not add to the deficit. „„
The program provides a cash benefit. The Secretary of Health and Human Services will „„develop benefit levels and premiums. Benefits will vary by level of disability, with a minimum of $50 a day. Premiums will likely vary by age at enrollment. Initial assessments indicate that, with an average benefit level of $75 a day, the program could be sustainable with monthly premiums that average $123. For full-time students between ages 18 and 22 and those with incomes below the poverty level, premiums will be $5 a month.
Why This Makes a Difference„„
The CLASS program will provide more reliable and more accessible assistance with the „„costs of home- and community-based care than most other coverage options that are available today.
The program will not deny coverage or charge a higher premium based on health status, „„like private insurance can. It is a lifetime benefit, so it pays as long as you need it; private insurance often limits the dollars or time period covered.
A $75-a-day benefit translates to $27,000 a year. While that may not pay for all of the care „„that someone needs, it can be a substantial contribution. The benefit will be adjusted to increase with inflation, something that not all private long-term care insurance policies do.
The CLASS program will keep many people from spending their assets to the point of „„reaching Medicaid eligibility. The Congressional Budget Office estimates that the program could save more than $3 billion in Medicaid costs in its first 10 years.
The CLASS program will give people a reliable benefit that will help them stay independ