THE ‘CLASS ACT’ CREATES A GOVERNMENT-RUN LONG TERM CARE INSURANCE PROGRAM (PART OF OBAMACARE)

Another Obamacare Entitlement Program Exposed

by Tierra Warren

http://links.heritage.org/ct/6761390:9894552839:m:1:210488226:633E47C84BB26417ADD1F54C61658687:r

Wikiphoto/Author: White House (Pete Souza)
“We have to pass the bill so that you can find out what is in it.” Remember when then-Speaker Nancy Pelosi (D-CA) said that?
In what is becoming a common occurrence, we’re finding out what’s in it. This time, another unsustainable layer of Obamacare has been exposed.
The Community Living Assistance Services and Supports Act, the “CLASS Act,” creates a government-run long term care insurance program that’s too costly to sustain.

At a time when entitlement programs are at the brink of bankrupting this country, liberals embedded this program into Obamacare. Now, as more and more information is revealed about the program’s consequences, liberals are back-pedaling their support.

A pet project of the late Sen. Ted Kennedy (D-MA), the CLASS Act was never going to be a sustainable program. For one thing, it suffers from an adverse-selection problem: the program would appeal mainly to those in poor health that would require long term and costly care.
The Heritage Foundation’s Brian Blase explains why the CLASS Act is broken and how its ill-conceived design would lead to its inevitable collapse or bailout:
quote

The main problem is that the program’s design will result in a badly skewed pool of participants … This means healthy individuals are less likely to participate because they do not receive credit in the form of a lower premium, like they would if they purchased [long-term-care] insurance in the private market. Instead, CLASS participants are likely to be disabled individuals who are able to work part-time and individuals who anticipate future [long-term-care] needs.
Moreover, the adverse selection problem is exacerbated because individuals earning below the poverty line are subjected to only a $5 monthly premium, and less healthy people are much more likely to be below the poverty line. The artificially low premium for them means that premiums will have to be much higher for others, which will diminish overall enrollment in the program and worsen its long-run solvency. The poor design of CLASS almost guarantees that the program will collapse or need a bailout.

quote
Health and Human Services secretary Kathleen Sebelius has since stated that CLASS is “totally unsustainable” and “financially unsound.”  HHS claims the only way to solve these problems without using their administrative authority would be through a taxpayer bailout, higher premiums, or by mandating worker participation.  None of which are acceptable options.
It’s time for proponents of Obamacare to admit they are fighting a losing battle. What do you think about CLASS? Does this country need another taxpayer funded entitlement program?

5 Constitutional Myths Busted

We know that liberals like to ignore the Constitution. And when they’re not ignoring it, they’re misinterpreting its true meaning.
To help clarify some of the liberal misconceptions that have developed over the last 224 years, The Heritage Foundation’s Julia Shaw separates fact from fiction.

Myth:  The Constitution is racist:
There is no better way to end a heated conversation about the Constitution than to claim that the Constitution is racist. In his feature on the Constitution, Time magazine managing editor Richard Stengel dismissed the Constitution because the Framers “gave us the idea that a black person was three-fifths of a human being.”
Fact: The Constitution does not classify people according to race. Free blacks in the North and the South were counted on par with whites for purposes of apportionment. Southern states wanted slaves to count as full persons to inflate pro-slavery representation in the House of Representatives. The three-fifths compromise was designed to prevent Southern states from magnifying their political power. The word “slave” or “slavery” never appears in the Constitution. When the 13th Amendment was ratified, not a single word of the Constitution needed to be deleted. As the escaped slave turned abolitionist, Frederick Douglass, once commented: the Constitution “was never, in its essence, anything but an anti-slavery government.”
Share

Leave a Reply

Search All Posts
Categories