One thing Congress agrees on in the health care reform bill is that long-term care insurance is a good idea.
The CLASS Act, or Community Living Assistance Services and Support Act is part of both versions of the current reform bill being worked on in Washington, DC. The proposed program would create a voluntary long-term care insurance program and workers at participating companies would be automatically enrolled unless they opt-out.
Estimates of the monthly deductions range from $150 to $250 dollars per month. The basics of the program are that any working American could elect the coverage but would have to pay premiums for at least 5 years before being eligible to make a claim. Premiums would be stable for the person’s life but the government has the option to raise them for the program’s solvency if necessary. The benefits would cover a minimum of $50 per day if they are deemed unable to perform at daily activities without assistance.
Many critics of the program have spoken out about the costs, eligibility and premiums while proponents have expressed frustration that a program like this has taken years to come about. Like the program or not, it appears that this is a portion of healthcare reform that has legs to survive committee and become law.
“I believe that long term care insurance is an extremely important component in planning for assisted living, in-home care, etc. However, the above stated premiums seem to be very high for a benefit of $50 pr/day. I am confident that an individual could shop the market and get a lower premium with a higher daily rate. The proposed legislation will offer a false sense of security for many folks, believing they will be able to move into a long term care community for $50 a day...you and I know that is extremely unlikely” says, Patricia Grace, CEO, Aging with Grace .
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