Class Act

November 1, 2010

The day before election day.  Please think carefully about your choices, your vote is still very important.

The Patient Protection and Affordable Care Act is just a bundle of surprises at every turn.  Next up is the portion of the Act that was enacted because and in memory of the late Ted Kennedy as it was an issue that was dear to his heart, the CLASS Act.  The letters stand for “Community Living Assistance Services & Support” (…/little-known-long-termhealth-care-provision-budget-buster-say-critics/) -and its purpose is to provide Long Term Care Coverage to every employed American.  A noble thought.

The coverage is guaranteed issue for all working Americans to be administered by HHS (Health and Human Services (  The benefit will be about (not defined yet) $50 per day of long term care – the first problem is that local care (the Hudson Valley) costs about $330 per day. 

Every employed American – let me repeat that – EVERY EMPLOYED AMERICAN will automatically be signed up for this coverage.  The coverage will not be free, next problem– there will be a monthly cost of from $100 to $240 (again, not defined yet) to be paid by EVERY EMPLOYED AMERICAN. 

Next problem, in order to be eligible to receive the benefit the covered employee must have paid into the system for 5 years and have been employed 36 months of that time (hence no one near retirement).  That means that no less than $6000 will have to have been paid in before meager benefit of $50 per day will be payable. 

Another problem, as stated earlier HHS will administer this coverage AND premiums will be adjusted whenever necessary to cover benefits.

Ok, so now you know all the problems. 

Employers and employees must be made aware of the CLASS Act as they can decline participation and waive coverage.  If not, they will be looking at a deduction from their weekly paychecks of no less than $25 per pay.  We can offer expert help