Massachusetts Property Insurance Underwriting Association

FAQ: What Factors Affect The Future Of CLASS - The Community Living Assistance ...

The future is increasingly uncertain for the CLASS Act, a controversial long-term care insurance program created by the 2010 federal health law and championed by the late Sen. Edward Kennedy, D-Mass.

The Department of Health and Human Services has promised to  release in mid-October a detailed analysis of what can be done to shore up the program’s financial structure, based on a review of legal and actuarial reports.

This step acknowledges charges made by CLASS critics that the program is not fiscally self-sustainable and will be a drain on the federal budget. Republicans, in particular, have pushed for its repeal . But advocates say modifications can be made to ensure no taxpayer dollars are used to pay for it. This tension has cast shadows on the program since early in the health reform debate, and recent events have further complicated its outlook.

Late last month, for example, HHS reduced the CLASS office staff, and the Senate Appropriations Committee approved a draft spending measure that cut funding for the program's planning and implementation.

Advocates are struggling to make sense of these signals and are nervous that the administration may be on its way to shelving the program for good. They also are concerned that CLASS could be targeted by the congressional deficit reduction "super committee" in its effort to trim federal spending and home in on entitlement programs. Supporters are quick to note, though, based on previous Congressional Budget Office estimates, repealing CLASS would actually add to the deficit over the debt panel's mandated 10-year budget window because in its first years it takes in premium payments but doesn't pay any benefits until 2017.

Here's a guide to the CLASS provisions that trigger questions about its financial viability and the possible fixes that are currently being considered.

Why do supporters think CLASS is needed?

The goal of the CLASS Act is to help people pay for long-term care with an emphasis on allowing them to remain in their own homes by providing a cash benefit averaging no less than $50 a day.

Massachusetts Property Insurance Underwriting Association ...

The MPIUA is the best viable option for many MA homeowners near the coast, on Cape Cod, or with properties not eligible for insurance in the voluntary market. Although you may be with The MPIUA, it doesn’t mean that you don’t have choices. We recommend you shop your MPIUA renewal with a Massachusetts Independent Insurance Agency like:  Johnson & Rohan Insurance . Your agent should review your coverage, give you options and package with your auto insurance.

Did you know many MA auto insurance companies give account discounts if you have an MPIUA home insurance policy?

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