The CLASS Act has been under fire for a while now. Despite the Department of Health and Human Services’ (HHS) promise to only implement the plan if it was fiscally solvent, and the fact that a majority of Americans are still committed to the CLASS Act (76% according to a Kaiser Family Foundation/ Harvard poll,) many have questioned its sustainability. Recent weeks have been particularly bad for CLASS, a recent report from a group of congressional Republicans offered up a scathing review of the plan, and the CLASS office has either downsized or closed, depending on whom you ask.
The speculation that the CLASS Act Office was closing began when an internal email from CLASS Act Office actuary Bob Yee leaked to the public. “I’m leaving my position as the CLASS Office actuary as HHS has decided to close down the CLASS Office effective tomorrow,” wrote Yee on Thursday. HHS however denies the closure. “While the staff of the CLASS office has been reduced, reports that the CLASS office is closing are not accurate,” HHS said in a statement to the media. “We are continuing our analysis of this program. As we have said in the past, it is an open question whether the program will be implemented. A CLASS program will only be implemented if it is fiscally solvent, self-sustaining and consistent with the statute.”
Either way, this is not good news for CLASS, which many hoped would provide a viable, flexible option for Americans to plan for their long term care needs. What is your opinion on the CLASS Act? Do you think it can survive the recent downsizing?
Update: 10/14 – Health and Human Services Secretary Kathleen Sebelius has announced that the Administration will not be moving forward with the CLASS Act at this point. Officials said the program has critical design flaws that prevent the program from being financially self-sustaining. How do you feel about the Administration’s decision?
