Implementation of the Community Living Assistance Services and Supports program has been officially halted by the Obama Administration, due to an internal report indicating the long-term care insurance program cannot be made actuarially sound and solvent.
As established under the Affordable Care Act, the program is required to be self-sustaining for at least 75 years. U.S. Department of Health and Human Services Secretary Kathleen Sebelius indicated this is not possible in a letter to Congressional leaders.
"Despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time," she wrote. Concern over the program mounted recently, as the chief actuary resigned and most staff members were reassigned to other positions.
The program still exists officially, but the Senate Appropriations Committee has decided not to provide funding for fiscal year 2012. Executive director of the American Association for Long-Term Care Insurance Jesse Slome indicated the program was too ambitious from the beginning.
Despite this, Slome praised its originators and supporters for trying to find a solution to the growing need for long-term care insurance. According to Slome, private insurance is not an appropriate solution for all those in need.
