Time for a Big Christmas Present
Dec
15
Written by:
12/15/2009 3:13 PM
Richard's thoughts on the Community Living Assistance Services and Supports (CLASS) Act.
Buried in all the hubbub about healthcare reform is a new program to help Americans pay for long-term care. Called the CLASS Act (Community Living Assistance Services and Supports), it would be financed by voluntary payroll deductions of about $85-100 a month, and provide “no less than” $50 a day in coverage for any type of long-term care, from home to assisted living to nursing home. Figures at that level are hardly a sweeping solution to the financial dilemma most families face when encountering the long-term care system — the daily benefits are relatively small. Also, the “entitlement” aspect of CLASS has taken a political pummeling in Congress which may doom it yet. But I find it hopeful that Washington is even considering anything along these lines.
I’ve spent 18 years watching families get hit over the head with costs ranging from upwards of $2,000 a month for assisted living to $6,000 a month for nursing home care, realizing too late that Medicare covers only a small portion of this — not even 20% of nursing home costs. The rest of the cost is uninsured until they spend a goodly chunk of their personal assets and go on Medicaid, the program for the poor. Some people are horrified at the thought that, when this happens, they’re “going on welfare.”
Long-term care providers see Medicaid as a program that short-changes them on their costs — nearly $15 per resident per day, says a recent study — a financial shortfall that accounts for a good deal of the bad press nursing homes receive.
Private long-term care insurance is an option, but it can be pricey for people over 50 and might not be top-of-mind for the product’s prime market of people in their 40s, who have other obligations to worry about, like college for their kids and caring for their aging parents.
The CLASS Act, whether or not it survives the healthcare reform final cut, is starting a much-need discussion at the federal level. Even that is a Christmas present. As my dad once said, “A pair of sox is better than nothing!”
5 comment(s) so far...
Continuing Care services, whether it be Nursing Homes, CCRC's, Assisted Living, or Adult Day Care, are all going to burn a hole in your pocket. To have the CLASS act available would be a blessing in disguise. I am sure that those who choose private insurance programs would be happy to see another option for them, other than Medicaid.
By Ron on
2/18/2010 9:35 AM
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One can only hope.
By Nora Jean Levin on
12/21/2009 1:40 PM
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Merry Christmas Sir! I too am concerned about the lack of attention given to the costs of long term care. In addition, the average guy out there has a lot on his plate to juggle budget dollars for; let alone buy LTC ins.
What do you think of the Hybrid products that allow the insured to better control [keep]their assets,get a fair rate of return and have LTC income if need be?
Thanks for your input. Frank
By Frank Sindelar on
12/21/2009 1:40 PM
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I'm also encouraged that the topic of long-term care funding is on policymakers' radar - and in a proactive context, rather than the usual reactive one (i.e. Medicare cuts). It's about time. Our current funding system is broken. Medicaid funds the majority of facility-based long term care, followed by Medicare. The funding of community-based options is spotty. The CLASS Act may not make not survive this year - and it's not a silver bullet, even if it does. But it's an indication that Washington might just be ready to talk about the elephant in the room.
By CC on
12/21/2009 1:41 PM
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Don't forget that many seniors are diabetic and therefore can't eat sweets. For years when I worked for non profits (before their funding was cut) I worked with the staff and volunteers to make fruit baskets that only cost about $10 if we put them together ourselves and looked like a million dollars. Every senior loved them. Ongoing support for their loneliness and isolation would be so helpful.
Sincerely Krista Emery
CMC and Alzheimers Caregivers support facilitatior in Palos Verdes California
By Krista Emery on
1/6/2010 9:28 AM
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