The Class Act, the Obama Administration’s attempt to provide a long-term care solution for the vast number of consumers that don’t have coverage for caretaking needs down the road, was sacked last week, following the release of a report that showed it had little chance of being able to sustain itself over the next 35 years.
The Class Act allowed anyone — even those with serious health problems — to sign up. Policy holders had to pay premiums for only five years and could then get benefits for life. The poor could pay just $5 a month. Both promises all but guaranteed that the program would have needed big government subsidies to avoid going broke, experts said. And, for most consumers, the benefits paid would cover only about a quarter of long-term care costs.