CLASS Act still alive in Senate

The debate over health care reform may be getting even more rancorous, but the Senate still aims to keep a provision that would create a government program for long-term care. The Senate last week voted 51 to 47 in favor of an amendment that was proposed by Sen. John Thune, R-S.D., which would have removed the Community Living Assistance Services and Supports Act from the health care reform bill. The 51 votes fell short of the 60 necessary for the measure to pass, however. The CLASS Act, which was spearheaded by the late Sen. Edward Kennedy, D-Mass., this summer, would allow workers to pay a premium to receive about $50 per day in benefits for medical equipment and home renovations, following a five-year vesting period. Critics of the program have questioned the CLASS Act’s ability to stay solvent. The Congressional Budget Office found that the program would reduce deficits by about $72 billion between 2010 and 2019, as it would take in more money than what it would pay out in benefits at first. The long-term-care scheme would begin to increase the deficit after 2029, the CBO found last month. The American Council of Life Insurers, one of the critics of the program, has critiqued the CLASS Act, claiming that it would give participants a false sense of security. That, the group warned, would discourage consumers from engaging in long-term-care planning. The council also insists that given the current tough economy, many taxpayers would not participate in the program. The success of CLASS Act “relies on participation by a wide range of the populace, including young and middle-aged individuals,” Frank Keating, ACLI’s president and CEO, said in a statement. “But with so many Americans struggling to make ends meet, it is unlikely that enough will roll in a program that will take, at present estimates, $123 monthly from their paychecks.” He also noted that the fight isn’t over for the industry trade group. “ACLI will continue to encourage the Senate, as well as the House, to delete the CLASS Act from any final health care bill,” Mr. Keating said. “ACLI believes there are better ways to address Americans’ long-term concerns that have broad support.”