The CLASS Act: How It Could Have Benefited Seniors and What’s Next for Long-Term Care

Financed through five years of voluntary payroll deductions paid by the recipient, the CLASS Act was to provide lifetime benefits for services and support. The program was for those unable to perform two or more functional daily living activities, like self-feeding or bathing, or who needed help due to cognitive impairment.^[01]

However, financial analysts found that the program’s premium costs would have been far too expensive for most and were projected to be financially unsustainable. The act was widely criticized and called on to be reformed or repealed, and, the CLASS Act was never actually implemented. On January 1, 2013, the New Year’s Day budget agreement officially repealed the Community Living Assistance Services and Supports Act.^[02]

For most Americans, seniors especially, the cost of care is a main determinant of the care they choose for themselves. Premiums would need to range from $123 to $240 per paycheck for the Community Living Assistance Services and Supports Act to be financially sustainable. With these costly premium projections, many did not think the CLASS Act was viable.^[01]

Medicaid, another governmental program for necessary medical services, differs from the Community Living Assistance Services and Supports program by only covering short-term stays in senior nursing facilities versus the long-term and variety of care that would have been offered by CLASS.

The CLASS program was designed to work in conjunction with Medicaid benefits while being the primary payer of benefits for eligible individuals. CLASS program benefits would not have affected eligibility for Medicaid or other governmental aide programs.

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For disabled seniors, the CLASS Act was supposed to serve those who anticipated needing senior services such as home care, adult day care, or other senior living options. The program aimed to achieve this by providing cash benefits to pay for daily living support and services. By having money set aside for future care, seniors could be confident they’d have access to future daily living care and support.

A particular benefit of the CLASS program was allowing seniors to have access to senior living communities or in-home care without financial stipulations. Although this benefit could have been very helpful, with such high premiums estimated, it would have become inaccessible for those who needed it most.

After the repeal of the CLASS program, Congress created the Commission on Long-Term Care. The Commission was a panel consisting of members appointed from the White House and Democratic and Republican members of the House and Senate. The goal of the commission was to come up with a plan to create and finance a program that would help individuals in need of long-term care support.^[01] While the Commission completed a report in 2013 with recommendations, no agreement was reached.^[03]

Talk with a Senior Living Advisor

Although the CLASS Act did not become reality, there are still many financial options available for seniors who want to secure their future. When planning for long-term care costs, it’s important to consider location, needed care services, preferred accommodations and amenities, and other factors that might impact care price.

While preparing for future living accommodations is overwhelming, it can be easier with careful planning and the investigation of currently available programs and resources. Consider looking into VA benefits, Medicaid, and other public support resources. For more guidance, connect with a Senior Living Advisor. They will be able to help match you with care and assistance that fulfills your needs.