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Volume 12 Number 132 News: Long-Term Care Key senators and House members introduced legislation July 10 that would create an insurance program for adults who become functionally disabled. Senators Edward M. Kennedy (D-Mass.) and Tom Harkin (D-Iowa), and Representatives John D. Dingell (D-Mich.) and Frank Pallone Jr. (D-N.J.) introduced The Community Living Assistance Services and Supports (CLASS) Act of 2007 (bill numbers not available). The legislation, which was unveiled at a Senate Health Education, Labor and Pensions Committee hearing, would establish a national insurance program to be financed by voluntary payroll deductions of $30 per month. The program would provide benefits to adults who become severely functionally impaired. All working adults would be automatically enrolled in the program, unless they opt out. "Too many Americans are perfectly capable of living a life in the community, but are denied the supports they need," Kennedy said. "Too often, they have to give up the American Dream--the dignity of a job, a home, and a family--so they can qualify for Medicaid, the only program that will support them. The bill we propose is a long overdue effort to offer greater dignity, greater hope, and greater opportunity." Program Benefits To qualify for benefits, individuals must be at least 18 years old and have contributed to the program for at least five years. The program would have two benefit tiers. Tier 1 benefits ($50 per day) would be payable to eligible individuals who have two or more impairments on activities of daily living (ADLs), or the equivalent cognitive impairments. Tier 2 benefits ($100 per day) would be payable to individuals who have four or more ADLs, or the equivalent cognitive impairment. The benefit payment would be posted monthly to a debit account. Individuals who do not use the full monthly amount would be able to roll it over from month to month, but not year to year. Once an individual becomes ineligible for CLASS benefits, the benefits payments would end. Any remaining balance remaining in the individual's account would not be payable. If an eligible individual chooses to move into an institution, the benefits would be used to defray those expenses. "As America continues to age, we are faced with an impending crisis in long term care," Pallone said. "Today, we offer a new approach that builds upon our existing safety net system and helps our elderly and disabled finance the long term care they need to remain active and productive member of their communities." If an individual is eligible for CLASS Act benefits and also is eligible for the long-term care benefit under Medicaid, CLASS Act benefits could be used to offset the costs to Medicaid, according to a summary of the bills. Disabled, Elderly Groups Express Support The CLASS Act "creates a new program that can take pressure off Medicaid and enable people to avoid being forced into poverty," said Andrew J. Imparato, president of the American Association of People with Disabilities. "It allows the individuals who have saved for the onset of disability to spend the benefit however they feel is most appropriate toward their long-term needs, be it a housing or transportation modification, assistive technology, or personal attendant services," Imparato said. "We support the CLASS Act because it would create a publicly-driven financing plan whose premiums provide cash benefits to pay for long-term supportive services and care," said Larry Minnix, president of the American Association of Homes and Services for the Aging. "The CLASS Act will help ensure that all Americans can receive the services they need, when they need them, in the place they call home." "It is imperative that Congress pass this legislation not only to care for future generations but to sustain two vital programs for America's most vulnerable: Medicare and Medicaid, which are both at risk of going bankrupt. With long-term care being the key cost driver in each of the programs, the CLASS Act is the right dose of preventive medicine to remedy this problem," said William Daroff, vice president for public policy of United Jewish Communities, in a press release.
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