FROM THE FOUNDATION

Redefining the Safety Net

Should California establish a Basic Health Program for certain low-income residents? CHCF's Marian Mulkey captures a recent policy conversation in a Health Affairs blog.

Accountable Care in Action

A new post on the Health Affairs blog details how CalPERS kept costs down in Sacramento through a "virtual" ACO with insurers and providers.

Career Opportunity: Senior Program Officer

This position will play a major role in furthering the goals and objectives of the foundation's Better Chronic Disease Care program.

Health Care Reform

Thursday, January 07, 2010

Opinion: Long-Term Care Insurance in Reform Is a Dud

The Community Living Assistance Services and Supports Act in the Senate's health care reform legislation would create a new program whose costs would come to exceed its revenue, Sally Pipes, president and CEO of the Pacific Research Institute, argues.  She disputes projections from the Congressional Budget Office about the price of the long-term care insurance program and maintains that CLASS would require cash infusions from Congress to keep paying out benefits.

Reader Comments:
  • 2
  • 01/07/2010
  • Jeremy Engdahl-Johnson

The CLASS Act may open the door to substantial adverse selection risk because it allows most anyone to access the long-term care program yet also makes the program voluntary. In other words, those most in need are likely to sign up, while others opt out, raising the cost of the overall pool. Is auto-enrollment the answer? See http:www. healthcaretownhall .com?p=1991

  • 1
  • 01/07/2010
  • Jesse Slome

The CLASS Act is a Trojan Horse, the first step toward the establishment of a taxpayer-paid long-term care plan. As currently envisioned the plan is doomed to failure. Congress has a sufficient example because Congressional representatives are offered voluntary long-term care insurance and few participate. If highly paid and well educated representatives don't participate what makes them think millions will afford the premiums. Once established, the second (easier) step will be conversion to an entitlement program for all with the cost borne by taxpayers. It's a great deal for AARP-aged participants who will derive benefit at the expense of younger Americans (who coincidentally do not have an similar group representing them). Long-term care is a serious issue but CLASS is not the sought-after solution.
Jesse Slome
Executive Director
American Association for Long-Term Care Insurance
Los Angeles
http://www.aaltci.org



Readers are invited to send feedback to: chl@chcf.org

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