
HHS Secretary Kathleen Sebelius
U.S. Department of Health and Human Services (HHS) Secretary Kathleen Sebelius notified Congress on October 14 that her office would not be able to go forward with implementing the CLASS program because it would not be affordable or fiscally solvent over time.
However, just three days later the White House announced that it opposed repealing the federal voluntary long-term care insurance program.
While these mixed messages have reportedly left supporters of the CLASS program confused as to whether the program will ever be realized, they are accepting what administration officials have called a “misinterpretation” of the HHS announcement in private conversations with leading CLASS supporters.
Both LeadingAge President Larry Minnix, Jr. and Connie Garner, who heads up Advance CLASS, Inc., said that administration officials have told them that they do not intend to “kill the program” (subscription required).
Advocates are continuing to press the administration to carry on with the CLASS program. They are heartened by what was said in these private conversations, as well as by the former Centers for Medicare and Medicaid Services Chief Actuary Bob Yee‘s remarks, reported in Inside Health Policy, that “the administration has the tools to effectively implement CLASS within the parameters of the statute.”
“It may be possible to design a modest government-run voluntary long-term care insurance program that is financially viable,” said Howard Gleckman, a fellow at the Urban Institute, in a blog post. “That at least is the message buried in the reams of documents released by the Department of Health & Human Services last Friday when it abandoned CLASS.”
A provision in the Affordable Care Act (ACA) requires that the CLASS Act must be fiscally solvent for 75 years.
Not Fully Gone Yet
On October 19, Judy Feder, professor at the Georgetown University Public Policy Institute, said in a radio interview [begins at 36:21] that the administration’s “reluctance to stand up for [the CLASS program] is a disappointment.”
She added that CLASS “is not fully gone yet. It’s still hanging by a thread.”
A few days before the HHS announcement, 100 organizations — including PHI, AARP, National Multiple Sclerosis Society, and the Paralyzed Veterans of America — sent a letter to President Obama (pdf) about the value of the CLASS program to American families.
The letter concludes by saying, “Mr. President, Congress gave you authority to make changes to the design of CLASS to make it work. We fully expect the Administration to go forward and use that authority in implementing the law.”
Future of the Personal Care Assistant Workforce Advisory Panel Unknown
Also still unknown is the future of the Personal Care Assistant Workforce Advisory Panel, which was mandated by a provision in the ACA under the CLASS Office. The panel is responsible for advising Congress on the adequacy of the number of personal care aides, their wages and benefits, and access to their services, for both the CLASS and Medicaid programs.
Sebelius released an HHS report on the CLASS Act on October 14, which explains that 13 of the panel nominees have been accepted but have yet to meet.
PHI Director of Policy Research Dorie Seavey, who was appointed to the panel (pdf), said, “We hope that CLASS proceeds, but regardless, the issues that Congress intended the PCA Panel to address remain paramount. Our country must develop a personal care workforce panel that is able to meet the rapidly growing demand for in-home services and supports, and it would be a mistake to shelve the important work of this panel.”
– by Deane Beebe