How do we ensure long-term solvency for the CLASS program?

We blogged last week about a Congressional committee’s hearing on the CLASS Act.  In his testimony, Al Schmitz put forward several ideas for ensuring the solvency of the new federal long-term care (LTC) program:

On behalf of the Academy, I offer the following recommendations for modifying the CLASS program:

  • An actively-at-work definition with a minimum requirement of 20 to 30 hours of scheduled work or a comparable requirement;
  • Restrictions on the ability to opt out and subsequently opt in with the use of either a long second waiting period for benefits or an alternative underwriting mechanism(s);
  • The use of a benefit elimination period or duration limits;
  • Benefits that are paid on a reimbursement rather than cash basis;
  • An initial premium structure that provides for scheduled premium increases for active enrollees at either a consumer price index or alternative rate.

These modifications, along with an effective marketing effort, will improve the sustainability of this voluntary long-term care program. Without these modifications, the program is likely to be unsustainable.

For more on some of these solutions, check out this post and the related articles.

One thought on “How do we ensure long-term solvency for the CLASS program?

  1. Thanks for a good post…

    I believe strongly the most important statement in your post was – “along with an effective marketing effort…will improve the sustainability of this long-term care program.

    While information is starting to make its way around in some circles, there needs to be more communication about the CLASS program.

    I appreciate all your efforts in this regard. Thanks again…

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