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CLASS Program Shut Down
Practical Law Legal Update 7-509-3024 (Approx. 2 pages)
CLASS Program Shut Down
by PLC Employee Benefits & Executive Compensation
| Published on 18 Oct 2011 • USA (National/Federal) |
The Secretary of the Department of Health and Human Services (HHS), Kathleen Sebelius, announced that the implementation of the Community Living Services and Supports (CLASS) program under the Affordable Care Act (ACA) would cease due to concerns over its financial sustainability. The CLASS program would have offered cash benefits to assist in long-term care in the event of an employee's disability.
On October 14, 2011, the Secretary of the Department of Health and Human Services (HHS) announced that the Community Living Assistance Services and Supports (CLASS) program would not be implemented. In her letter to Congress, which included a report on the program, Secretary Kathleen Sebelius indicated that a plan cannot be designed that would be actuarially sound and financially solvent for at least 75 years.
The CLASS program, which originated as part of the Affordable Care Act (ACA), would have offered employees the option to purchase insurance that would provide cash benefits in the event of of a disability. Benefits could be used to help with long-term care, such as nursing home or in-home assistance.