The Community Living Assistance Services and Supports Act (CLASS Act) was meant to provide Americans with an option to finance long-term services and care in the event of a disability. Sadly, it failed to happen, and the many people who would have benefitted from it are still left struggling on their own for essential care.

I talk with many people on forums and groups struggling with every day home care. Depending on what state they live in and what their circumstances are, some can get a little assistance, but most can not. For those that can, many need to impoverish themselves to qualify for Medicaid. This often means caregivers giving up work to care for their family, or for those who don’t give up work, contributes to caregiver burnout with having to work and provide care.

The CLASS Act was meant to be a self-funded and voluntary long-term care insurance choice. Workers would have paid in premiums in order to receive a daily cash benefit if they develop a disability. Need would have been based on difficulty in performing basic activities such as bathing or dressing.  The benefit was flexible: it could have been used for a range of community support services, from respite care to home care.

No taxpayer funds would have be used for payment of benefits under CLASS, it would have been paid by premiums and any associated interest earnings. The program would have actually reduced Medicaid spending, as people would have been able to continue working and living in their homes and not enter nursing homes. Safeguards would have been put in place to ensure its premiums were enough to cover its costs.

The act would have created a national insurance trust with a potential daily cash benefit. Benefits would have varied by severity of functional limitation, with the average being at least $50 per day to pay for supportive services, including hiring friends or family, paying for in-home support, etc. Employers would have auto-enrolled employees through payroll deduction similar to some 401(k) plans, and there would have been subsidies for low-income individuals and students.

In October 2011 the Obama administration announced it was unworkable and would be dropped. The CLASS Act was repealed January 1, 2013. Sadly, it got caught up in all the politics around healtcare reform. It is my hope that once the dust settles around the Affordable Care Act (ACA), that people will realise the importance of programs that help those in need, and ultimately save money in avoiding the many problems caused by not having assistance and support services.

If you would like to read more, this is a good overview with many links at Family Caregiver Alliance (FCA).