The CLASS Act, the plan to create a national voluntary long-term care insurance program, is now included in both the House and Senate versions of health reform. So that means it will pass this year, right? Not so fast. There once was a time when provisions included in both the House and Senate versions of a bill were almost certain [...]
Pity the supporters of the CLASS Act, the proposal to create a national long-term care insurance system. They are on to an important idea, but they are caught between the proverbial rock and a hard place. Here's the problem: much of the congressional support for the CLASS Act is based on the Congressional Budget Office estimate that it will generate [...]
The national long-term care insurance program called the CLASS Act will be included in the Senate Democratic leadership health reform bill that is expected to be released within the next day. The decision by Democratic leader Harry Reid to add CLASS to the bill is a huge victory for backers of the measure, which is already in the House-passed bill. However, many [...]
In a Nov. 13 report, Chief Medicare actuary Rick Foster estimates that the CLASS Act--the proposed national long-term care insurance program--faces "a significant risk of failure" because few would buy the coverage, and those who do would likely have high long-term care expenses. This phenomenon, called adverse selection, would drive up the cost of premiums and further discourage healthy people from buying coverage. The study will [...]
I spent today with the New Hampshire legislature's long-term care caucus and a group of stakeholders as they wrestled with the challenges of expanding the state's Medicaid home and community based care program for the elderly and adults with disabilities. Thanks to a kind invitation from State Representative Kate Miller, who chairs the caucus, AARP executive vp John Rother and I were able [...]
John Mills, who cared for his dad for six years, has started a nice new website filled with practical tools and information for caregivers. You can find it at http://www.ecarediary.com/ For those caring for parents, this is one worth checking out.
(I posted this yesterday on my TaxVox blog, but those interested in long-term care may be interested as well) Long-term care insurance has been a model of market failure. The need for care in frail old age or disability seems to be the ideal insurable event. Two-thirds of those over 65 will need some assistance before they die and 20 percent will [...]