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Many employed individuals act as caregivers to their old or sick parents and relatives to cut the expenses for private home health aides and personally assist their loved ones. So when the federal government revealed the establishment of CLASS Act, high hope uplifts the determination of millions of American workers who have been aspiring for an accessible government program for long term care. However, is CLASS Act the solution to the increasing long term care problem? The U.S. Department of Health and Human Services disclosed that 70 percent of seniors age 65 and above will need long term care services in the future. The high costs of LTC services make it even worse for consumers to afford the annual fee for nursing homes which skyrocket to $80,000 per year according to MetLife survey. Another reason why the government has pushed through the inception of CLASS Act is the intricacy of private long term care insurance policies that oblige consumers to know this insurance better. However, very few companies take time to educate employees what LTC options are and how it can benefit them; whether it is a private insurance or CLASS Act, employees must know what’s best for them. How it all started? The Community Living Assistance Services and Support Act or CLASS Act was hailed as the first federal-run and consumer-financed insurance program for all working Americans. This was officially signed on March 23, 2010 by President Barack Obama and made effective on January 1, 2011. Nevertheless, the secretary of Health and Human Services is appointed to develop the plan that addresses the requirements of the state and its people until October 1, 2012. All “actively” working Americans of legal age (18 and above) and not staying in long term care facilities such as nursing home are entitled to enroll in the program. The term “actively working” refers to those taking part-time or full-time jobs, and the self-employed. It does not reject applicants with pre-existing condition that no private insurance does. All voluntary members will be signed up by their employers. Like other employee benefits, the premiums will be automatically deducted in the payroll. Otherwise, anyone can freely decline the coverage by opting out; employers are also not forced to participate in the program. However, the state encourages more and more employers to adopt the CLASS Act program as benefits to their employees. Since members will be paying premiums, the plan will reimburse payments through “benefits” of an estimated amount of$50 day. The program will check the appropriate cash benefits based on the person’s needs and condition. The Secretary is assigned to come up with the scale of benefits, wherein those who are functionally limited and need assistance with more activities of daily living may receive higher amount of benefits. The cash benefit is also designed to keep pace with inflation. The member must continue receiving benefits until he or she has no qualifying level of disability. The law appoints the HHS Secretary to determine the premium’s cost that will give the best of both worlds. The fine points of the program must be completed on or before October 1, 2012, before it will take effect.
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