House approves CLASS repeal

Posted on February 2, 2012 | No Comments
Filed under 112th Congress, Congressional Action, Key Developments, Legislation

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By a vote of 267-159, the House approved a bill (H.R. 1173) yesterday to repeal a long-term care program, Community Living Assistance Program and Supports (CLASS), a provision of the Affordable Care Act (ACA). Twenty-eight Democrats joined a unanimous Republican Conference in support of the repeal. CLASS was added to the ACA as the first federally sponsored long-term care program available to most working adults on a voluntary basis. This repeal comes after an announcement in October 2011 from the Obama administration, stating that they had no intention of implementing the program due to financing issues. The repeal of the (CLASS) program has been a priority of the Republican controlled House, but it seems there is little chance that a similar bill would pass in the Democratic-controlled Senate.

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The U.S. Department of Health and Human Services (HHS) Secretary Kathleen Sebelius wrote a letter to Congress earlier today announcing that the Obama administration has given up on the Community Living Assistance Services and Supports (CLASS) program. The goal of the CLASS initiative was to improve long-term care insurance options for Americans. The CLASS Act was championed by the late Senator Edward M. Kennedy and Republicans have opposed the initiative since its introduction as part of last year's health care law.

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Health Reform and Community Living Assistance Services and Supports (CLASS)

February 18, 2011

Approximately 10 million American seniors and individuals with disabilities need long-term services and supports (LTSS), and the number is expected to increase to nearly 21 million by 2040. Private long-term care insurance represents only a fraction of long-term care financing, due to a host of issues ranging from the high cost of insurance premiums to concerns about the high rate of coverage denials. Medicare only covers short-term skilled nursing care services and home health services, and Medicaid, the primary payer of LTSS (almost 50%), covers a range of services, but is only available to low-income individuals with disabilities. In the Patient Protection and Affordable Care Act (ACA), Congress addressed the long-term care needs of the elderly and disabled by making a number of changes in Medicaid coverage of home and community based services, and by establishing the Community Living Assistance Services and Support (CLASS) program, a voluntary, federally administered health insurance program designed to assist eligible individuals in purchasing long-term community living services and supports.