Health Reform: The CLASS Act

 

One provision included in the new Health Reform law is a national long-term care insurance program, established by the Community Living Assistance Services and Supports (CLASS) Act. Effective Jan. 1, 2011, the CLASS Act will provide a lifetime cash benefit that offers people with disabilities some protection against the costs of paying for long term services and supports, and helps them remain in their homes and communities. CLASS is a voluntary, self-funded, insurance program with enrollment for people who are currently employed. Premiums will be paid through payroll deductions if an individual’s employer decides to participate in the program. Self-employed people or those whose employers do not offer the benefit will also be able to join the CLASS program through a government payment mechanism.

Individuals qualify to receive benefits when they need help with certain activities of daily living, have paid premiums for five years, and have worked at least three of those five years. Beneficiaries receive a lifetime cash benefit based on the degree of impairment, which is expected to average roughly $75 a day or more than $27,000 per year. Benefits can be used to maintain independence at home or in the community, and should be sufficient to cover typical costs of home care services or adult day care or used to offset the costs of assistive living and nursing home care.

-From “The Patient Protection and Affordable Care Act Community Living Assistance Services and Supports (CLASS)”,Democratic Policy Committee http://dpc.senate.gov/healthreformbill/healthbill59.pdf, retrieved 4/28/10. Cited in/linked from –“Health Reform: What Changes Are in Store for the Elderly?”, ElderLaw News from ElderLaw Answers, April 08, 2010.

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