The U.S. House of Representatives recently repealed the CLASS Act, a long-term care insurance program that some legislators say was an obstacle to reform.
The program was evaluated by the Department of Health and Human Services, which determined implementing it would be problematic. Analysis suggested that it would require enrollment of a significant number of healthy Americans to remain fiscally stable, which the government could not guarantee. As a result, projections showed premiums could reach unreasonable levels, and the government would then be forced to either abandon the program or support it with external funding.
Based on those findings, the program was essentially abandoned. Now, lawmakers in the House have voted to repeal the program, although some disagreed with the move, saying they would prefer to find a way to fix the program, rather than eliminate it, according to The Hill. The Senate may not take up the issue.
Exploring alternatives, Louisiana Representative Charles Boustany mentioned that he and Massachusetts Rep. Richard Neal previously considered a bill that would allow consumers to buy long-term care insurance through employer-based employee benefits programs and flexible spending arrangements. It is unclear what alternatives are currently being examined by lawmakers, though some did suggest that eliminating the CLASS Act opens the way for stronger alternatives.
