Shelved Long-Term Care Program Gets Congressional Scrutiny

Abstract

WASHINGTON – Now that the Community Living Assistance Services and Supports program has been suspended, supporters warn that without some kind of long-term care program, Medicaid costs could steadily increase as the U.S. population grows older.The CLASS Act was enacted in 2010 as a part of the Affordable Care Act and was controversial from the start due in part to concerns over whether or not it would save federal health care dollars.The Health and Human Services Department decided in October to delay implementation of the program, calling it fiscally unsustainable. In November, the House Energy and Commerce Health Subcommittee voted to fully repeal the CLASS Act, but as of late December, neither the full House nor the Senate had endorsed that action.According to the Kaiser Family Foundation, Medicaid currently pays for 40% of long-term care services in the United States. Rep. Kathy Castor (D-Fla.), in a joint hearing of the House Energy and Commerce subcommittees on health oversight and investigations said that, with the growing elderly population, those numbers will only increase.“Here comes the baby boom generation, and if we don't get in front of this … we're going to be paying on the back end in Medicaid,” she said.Kathy Greenlee, assistant secretary for aging at the HHS testified that while CLASS was determined to be fiscally unsustainable, the administration considers it a priority to find an alternative that offers similar coverage.“The opportunity that CLASS presents is a way for people to take responsibility for some of their own long-term care financing,” she said.Rep. Ted Deutch (D-Fla.) said, “The current system incentivizes poverty. It forces seniors to blow through their life savings and spend down in order to qualify for Medicaid.” Rep. Deutch said, “Sadly, Medicaid steers [long-term care patients] into institutional care, despite their preference for less-costly, in-home care and other community-based options.”Republican lawmakers continue to call for a full repeal of the CLASS program.There are more fiscally responsible options for long-term care than CLASS, according to Rep. Michael Burgess (R-Tex.), vice chair of the health subcommittee. Congress should allow Americans to pay for long-term care insurance with pretax dollars, or out of their health savings accounts, he said.Rep. Charles Boustany (R-La.) said that Americans must prepare for long-term care. “The fundamental issue here is planning, starting at an early age and planning for these kinds of things.” WASHINGTON – Now that the Community Living Assistance Services and Supports program has been suspended, supporters warn that without some kind of long-term care program, Medicaid costs could steadily increase as the U.S. population grows older. The CLASS Act was enacted in 2010 as a part of the Affordable Care Act and was controversial from the start due in part to concerns over whether or not it would save federal health care dollars. The Health and Human Services Department decided in October to delay implementation of the program, calling it fiscally unsustainable. In November, the House Energy and Commerce Health Subcommittee voted to fully repeal the CLASS Act, but as of late December, neither the full House nor the Senate had endorsed that action. According to the Kaiser Family Foundation, Medicaid currently pays for 40% of long-term care services in the United States. Rep. Kathy Castor (D-Fla.), in a joint hearing of the House Energy and Commerce subcommittees on health oversight and investigations said that, with the growing elderly population, those numbers will only increase. “Here comes the baby boom generation, and if we don't get in front of this … we're going to be paying on the back end in Medicaid,” she said. Kathy Greenlee, assistant secretary for aging at the HHS testified that while CLASS was determined to be fiscally unsustainable, the administration considers it a priority to find an alternative that offers similar coverage. “The opportunity that CLASS presents is a way for people to take responsibility for some of their own long-term care financing,” she said. Rep. Ted Deutch (D-Fla.) said, “The current system incentivizes poverty. It forces seniors to blow through their life savings and spend down in order to qualify for Medicaid.” Rep. Deutch said, “Sadly, Medicaid steers [long-term care patients] into institutional care, despite their preference for less-costly, in-home care and other community-based options.” Republican lawmakers continue to call for a full repeal of the CLASS program. There are more fiscally responsible options for long-term care than CLASS, according to Rep. Michael Burgess (R-Tex.), vice chair of the health subcommittee. Congress should allow Americans to pay for long-term care insurance with pretax dollars, or out of their health savings accounts, he said. Rep. Charles Boustany (R-La.) said that Americans must prepare for long-term care. “The fundamental issue here is planning, starting at an early age and planning for these kinds of things.”