What is CLASS?
(Title XXXII The Patient Protection and
Affordable Care Act)
Long-Term Care Planning
9100 Arboretum Parkway,
Richmond, Virginia 23236
U.S. Senate Special Committee on Aging
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
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
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
Purpose of the CLASS Program
To Establish a National Program to Help
Maintain personal and financial independence
Address the nation’s community living assistance
Alleviate the burdens on family caregivers
Establish a new financing mechanism for long-term
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.
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.
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.
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
Significant risk of CLASS Plan rate stability and plan
solvency due to potential anti-selection (no health
underwriting with CLASS)
Fill in the blank…
Private LTC Plan
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