Health Care Reform and LTC: What is the CLASS Program?

The health care reform bill (now known as the Patient Protection and Affordable Care Act), which includes the Community Living Assistance Services and Supports (CLASS) provisions has been signed into law.

Many of the details of the CLASS provisions are not yet defined and will be developed through regulation. Most of the terms of the new CLASS program that passed as part of the Patient Protection and Affordable Care Act will be developed by the Department of Health and Human Services over the next few years. Certain terms are set in statute,

including the following:
Enrollees will:

• Pay a monthly premium, through payroll deduction, that has yet to be determined, but most recent estimates indicate that the average premium will be $180-$240/month; that premium could be increased yearly to ensure that the CLASS fund is actuarially sound.

• Be covered on a guaranteed-issue basis;

• Be eligible for benefits for their long-term care needs after paying premiums for the first 60 months of coverage (i.e., a 5-year waiting period) and have worked at least three of those five years;

• Receive a lifetime cash benefit after meeting benefit eligibility criteria, based on the degree of impairment, which is expected to average about $75/day or more than $27,000 per year and is payable as long as the claimant remains disabled.

Now that the bill has been signed into law by President Obama, it will go to the Department of Health and Human Services, where the terms of the program will be worked through. From there it will be two years before the program goes into effect and another five years from that point before anyone is eligible for benefits.

Delaying the purchase of an LTC insurance policy because you think that the government program will cover your long-term care costs is not recommended. Any delays in long-term care planning can have an effect on the cost of a policy and possibly your insurability.

The advantages of an individual private LTC insurance policy are many:

• It does not require that the individual be employed.
• Offers a broad range of benefits and is better suited to address the high cost of care
• It does not have a minimum number of years an individual must pay premiums before benefit are payable: the coverage will begin paying benefits once the benefits trigger and waiting periods have been met.
• Any unused LTC insurance benefits are carried over from year to year.
• The policy provides access to care coordination services, quality providers and provider discount.

If and when the CLASS provisions are up and running in about 7 years and you have been in the workforce and contributing to the pool, you may have yourself a additional supplement to your solid private LTC insurance policy.

For a Free, No Obligation Long-Term Care Financing and Planning Consultation

Health Care Reform and Long-Term Care

Everyone is waiting for the results of the health care reform bill. Depending upon your age, one is looking at the different parts of the reform. The bill will be covering everything to demanding everyone get health insurance, Medicare reform and the Class Act (a voluntary program for working adults to help with some long-term care costs in the future).

If you are thinking that this health care reform will cover your long-term care costs, Think Again. It is time to get the information on what is long-term care, where this type of care is received and how and when people begin needing this type of care. And most importantly, how much does this cost?

What is long-term care insurance? Why is it so important to the aging baby boomers? The cost of care is staggering and increasing every year. The cost of long-term care insurance is usually a small part of what the actual costs are for care. The break even point of paying for this insurance for as long as 20-30 years could easily be as little 3-6 months of care.

Depending upon your age, financial situation and where you are going to receive your care, a long term care plan can be designed just for you.

Cost of care is different in every state. Find out the cost in your area.

For your own individual free, no obligation consultation, send an email to:
dane@LongTermCareInsurancePros.com or REQUEST A QUOTE