Monday, March 22, 2010

Health Care reform Passes House - Does it do Anything for Long Term Care?

The House Health Care Reform bill that passed the House last Sunday (3/21/10), included the Community Living Assistance Services and Supports (CLASS) Act, which will establish a new national long-term care insurance program. CLASS continues to survive the long legislative march towards health reform and, given the CLASS Act's short-term contribution to revenue, the betting on Capitol Hill is that the Act will be in any health reform bill that makes it to President Obama's desk.

Under the voluntary CLASS program, Americans will pay a premium, originally estimated at $65 per month. After they had contributed for at least five years, participants who needed long-term care would be eligible for a modest benefit to pay for a range of services that would help them stay in their homes. In the House bill, that benefit would depend on the degree of incapacity, but would average $50 a day.

Although versions of the CLASS Act are in the House bill and in the Senate Health, Education, Labor and Pensions (HELP) committee's health care reform bill, it is unclear whether the Act will be part of the final Senate bill, which will be a melding of the HELP and Finance committees' health reform measures. But the CLASS Act has one huge advantage that could ensure its survival: it helps the bottom line of any final legislation by being a revenue generator for about two decades. Id CLASS does end up passing the Senate and House unchaged it would take effect in late 2012 or early 2013.

Stay tuned for further developments.