As reported yesterday by the Associated Press, former Genworth actuary Robert Yee, the man HHS had hoped would be able to create a viable government supported long-term care program, has resigned after being advised that the Obama administration was planning to take a “pause” from planning and implementing the program. Yee, along with other technical team members have either left or been reassigned. READ THE ENTIRE ARTICLE HERE.
This apparent sudden turn of events comes as little surprise to those of us tracking this issue. Conventional wisdom in Washington, DC has, in recent weeks, come to the realization that a program as ill-conceived as CLASS was a bridge too far despite the the powerful political forces in support and the obvious need for Americans to have expanded options for long-term care planning.
As CLASS’ demise has become more and more evident the question that has plagued me is this; since CLASS was an integral part of how the Obama Administration planned to pay for PPACA would it’s death mean that health care reform would have to be revisited? Apparently not. As the above referenced article states:
Technically, Health and Human Services Secretary Kathleen Sebelius has most of next year to make a decision. As long as CLASS remains on the books it counts as reducing the deficit in the ten-year estimating window used for federal budget purposes. That’s because CLASS would collect premiums for a number of years before it paid any benefits. The budget quirk may make it tempting to maintain at least a shell of a program.
So, the “Ponzi” scheme (not my words — Senator Kent Conrad, (D) North Dakota) known as the CLASS Act. will now become a doppleganger of sorts; “a ghostly double or counterpart” (Dictionary.com) of it’s former self.
Now it becomes vitally important for consumers to take charge of their own long-term care planning. There will be no government bailout and the creaky safety net of Medicaid (Medi-Cal) will continue to fray. This means that the best hope for the public are insured private long-term care planning solutions sold by independent insurance agents and financial planning professioinals who will be able to help them with a growing number of traditional and linked LTCi products.
As we discussed in our web cast this morning, NO LONG-TERM CARE INSURANCE BROKERAGE GENERAL AGENCY is better positioned and more prepared to help you assist your clients in this vitally important arena.
Check out our website and contact us today.
Sincerely,
Barry J. Fisher