For quite some time, elder-care advocates have encouraged federal legislation that would require certain long-term care measures for older adults. However, a recent article in the New York Times referred to this legislation—the Community Living Assistance Services and Supports (CLASS) Act—as a victim of the recent fiscal cliff deal in Congress. In short, the CLASS Act was repealed. What does this mean for nursing home and other residential care programs? Very likely, long-term care will remain available only through private long-term-care insurance in the near future. Are you considering long-term care insurance? Or do you have a loved one who may require nursing home or other residential care? You’ll want to have a clear idea of what the end of the CLASS Act means for you and your loved ones.
History of the CLASS Act
The CLASS Act was originally conceived by Senator Edward Kennedy in the mid-1990s. Elder Law Answers explains that Kennedy’s proposed long-term care plan would allow employees to pay a small premium, approximately $65 per month, which is much lower than the average cost of a private long-term care insurance plan. For participants who had contributed for at least five years and worked for at least three of those years, they would become eligible for benefits of at least $50 per day.