Sebelius on the CLASS Act: 'I do not see a viable path forward'

Oct 15 2011

The Obama administration has decided to halt plans to implement the long-term care program in the 2010 health care law after determining that financing mechanisms were not sufficient.  

Kaiser Health News: "The Community Living Assistance Services and Supports (CLASS) Act, a program championed by the late Sen. Edward M. Kennedy, has come under withering criticism from Republicans, who disputed claims that it would be fully funded by enrollees. 'For 19 months, experts inside and outside of government have examined how HHS might implement a financially sustainable, voluntary, and self-financed long-term care insurance program under the law that meets the needs of thos seekig protection for the near term and those planning for the future,' Secretary Kathleen Sebelius wrote in a letter to congressional leaders. 'But despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time' (Verdon, 10/14).

The Hill: "Sebelius said the department will not continue trying to implement the CLASS program, which was intended to provide insurance for long-term care. Republicans charged that the program's financial structure was unsustainable, and Sebelius conceded as much Friday. ... The department recently reassigned the people it had placed in the CLASS office, following the release of e-mails showing that HHS officials had raised concerns about the program's viability even before it became law" (Baker, 10/14).

The Associated Press: "Health and Human Services Secretary Kathleen Sebelius told Congress in a letter that she does not see a viable path forward at this time. By law, implementation of the program was contingent on Sebelius certifying it financially sound" (Alonso-Zaldivar, 10/14).

The Wall Street Journal: "The program, a top priority of the late Sen. Edward Kennedy (D., Mass.), is the first big part of the health overhaul to get killed, and is expected to embolden critics of the law" (Radnofsky, 10/14).

Fox News: "The CLASS program was supposed to be a voluntary insurance plan for working adults regardless of age or health. Workers would pay an affordable monthly premium during their careers, and could collect a modest daily cash benefit if they became disabled later in life. The problem all along has been how to get enough healthy people to sign up" (10/14).

National Journal: "The controversial insurance program, established under the 2010 health reform law, had been on indefinite hiatus. Staff at the CLASS office within HHS were reassigned last month. Senate Democrats removed all funding for CLASS in the Labor-Health and Human Services 2012 spending bill because program "implementation has been delayed." The program was originally intended to start collecting premiums in October 2012" (McCarthy, 10/14).

Kaiser Health News links to Health and Human Services Secretary Kathleen Sebelius' letter to congressional leaders explaining this decision.

She also offered the following comments in a Huffington Post column -

Huffington Post: "So even as we suspend work on implementing CLASS, we are recommitting ourselves to the ultimate goal of making sure Americans can get the long-term care they need, whether it's a working-age mom with disabilities who needs daily support right now or a young man at his first job who wants to protect himself and his family against the possibility of huge long-term care costs in the future" (Sebelius, 10/14).

Earlier, related KHN coverage: FAQ: What Factors Affect The Future Of CLASS (Barr, 10/4).