With the Community Living Assistance Services and Supports (CLASS) program no longer moving forward, industry observers and regulators believe it is unlikely the federal government will take action on long-term care insurance in the near future.
Long-term care needs are growing, and without CLASS or another solution to take its place, the financial burden will become increasingly problematic for state governments, according to Kansas Insurance Commissioner Sandy Praeger.
Chairwoman of the National Association of Insurance Commissioners' Health Insurance and Managed Care Committee, Praeger noted half of state budgets for Medicaid already go to long-term care costs. David Levy, chairman of the American Association for Caregiver Education, indicated states lack the ability to support long-term care insurance.
The CLASS program was scrapped due to concerns it could not remain solvent. According to one analyst with A.M. Best, affordability concerns and difficulty with accurate pricing of the costs are stifling attempts to formulate effective policy. Coupled with the specialized nature of the product, this is causing some agents to choose not to sell long-term care policies.
The federal government does intend to raise awareness about the need for long-term care insurance through a program created as part of the Affordable Care Act, Assistant Secretary for Aging Kathy Greenlee recently told the House.
