Class act ltci info

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  • Class act ltci info

    1. 1. What is CLASS? (Title XXXII The Patient Protection and Affordable Care Act) and Long-Term Care Planning Long-Term Care Consultants, Inc. 9100 Arboretum Parkway, Suite 180 Richmond, Virginia 23236
    2. 2. U.S. Senate Special Committee on Aging Says  It [long-term care] differs from other types of health care in that the goal of long-term care is not to cure an illness, but to allow an individual to attain and maintain an optimal level of functioning….  Long-term care encompasses a wide array of medical, social, personal, and supportive and specialized housing services needed by individuals who have lost some capacity for self- care because of a chronic illness or disabling condition.
    3. 3. What is the CLASS Program?  It is the Community Living Assistance Services and Support (CLASS) Federal Program. It was included as a part of the Health Care Reform bill known as The Patient Protection and Affordable Care Act that was signed into Law as of March 23, 2010.
    4. 4. Purpose of the CLASS Program To Establish a National Program to Help Individuals:  Maintain personal and financial independence  Address the nation’s community living assistance services  Alleviate the burdens on family caregivers  Establish a new financing mechanism for long-term care services
    5. 5. What does the CLASS Plan do?  The CLASS Act creates a voluntary government long-term care program for working employees. Those employees who choose to pay a monthly premium will receive long-term care support and services on a guarantee-issue basis.
    6. 6. How will CLASS Plan impact employers?  Requires employers to provide education and awareness to their employees about availability of CLASS Long-Term Care Plan.  “Enrollment procedures for employers in the CLASS program are intended to be similar to those currently established by 401(k)…key difference…employers…are required to use automatic enrollment procedures.” Community Living Assistance Services and Supports (CLASS) Provisions in the Patient Protection and Affordable Care Act (PPACA), Congressional Research Service, June 4, 2010, 7-5700, R40842, page 5.
    7. 7. The CLASS Plan vs. Private LTCI It may help you to frame private long-term care insurance and CLASS in the same way that you now consider private disability insurance as compared to Social Security Disability Income or Workers Compensation. Although these plans cover similar risks, they are different. Some employees will still choose to purchase private insurance even though a similar risk is covered elsewhere.
    8. 8. The CLASS Plan vs. Private LTCI continued…  A need for private LTC Insurance will remain as CLASS Plan benefits are limited (low daily benefit amount)  Private LTC premiums are expected to be more cost competitive for many consumers (discounted plans available through employers)  Benefits from private insurance are more flexible with immediate protection once a policy is placed in force (Class Plan requires 5 years of paying premium before accessing benefits)  Significant risk of CLASS Plan rate stability and plan solvency due to potential anti-selection (no health underwriting with CLASS)
    9. 9. Fill in the blank… Employee Need  Healthcare Needs  Dental Needs  Untimely Death  Income Replacement  Personal Assistance  Retirement Portfolio  Protection of Retirement Portfolio Employer Solution  Health Plan  Dental Plan  Life Insurance  Disability Insurance  EAP Program  401(k) Program  Private LTC Plan
    10. 10. CLASS Continued… While there is much speculation on CLASS, our organization is committed to being your source for information as it becomes available through our turn-key Long-Term Care Education and Awareness Program for employers and employees. Contact us if you have questions related to CLASS, long-term care planning, or long-term care insurance. Long-Term Care Consultants, Inc. 9100 Arboretum Parkway, Suite 180 Richmond, Virginia 23236 804-272-5827 LTCaruthers@LTCP.US

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