CLASS Act’s Cancellation Disappoints Supporters - By: krista waugh

Now that the CLASS Act has been cancelled by the Department of Health and Human Services, those who are still uninsured and does not own an LTC insurance policy continue to search for better and more affordable policy options that they can avail.

Since this program promised that it would offer the lowest possible monthly rates that can be given to the public, those who belong below the poverty level were given slight hope that they can finally know and experience how such insurance plans can make their lives more comfortable and hassle-free.

But sadly, their hopes and aspirations of getting better chances of receiving the proper and high quality LTC services and facilities that they might need disappeared quickly.

October of last year, the cancellation of the program was announced amidst some arguments and deep refusals of those who support the program. For its supporters, the program should be continued in order to prove its worth and effectiveness. They argue that the time of its implementation should be further prolonged and must be given considerations especially because the program has just started early last year.

But those who decided to finally cancel it said that although the program seems promising and ideal, the possible trust fund that it might accumulate over time from the premiums collected by salary deduction might not be enough once the policy owners start receiving LTC services.

Originally, the CLASS Act would require an automatic enrollment for all working individuals in the United States. But the person can opt to cancel his enrollment if he already owns a private LTC insurance policy.

Ideally, it was to be funded by cheap monthly premiums that will be collected by the employers through salary deduction. The employers were also given the alternative to pay for a certain amount of their employees’ contribution but this depends solely on the preference of the management.

The initial press release was that monthly premiums would start from as low as $22 a month for working students and the rest of the rates will be determined later on as the program progresses.

The program seemed to be working fine but due to the fact that the costs of LTC services continue to increase over time, some authority felt that it would only be a waste of time and energy to persistently continue its implementation. One of the reasons is because they fear that by the time comes that the first batch of insured individuals start collecting their benefits, the fund is not enough to accommodate and cover all their needs given the expensive amount of the services available.

Since it only became effective last year, some of the provisions and guidelines of the program were not yet fully organized and finalized, making it harder to fully apply and put into practice.

With its cancellation, the public is now awaiting for further announcements if a new LTC program will be implemented in order to replace the CLASS Act. They are hoping that a new one will be created soon so it would not be too late for them avail of an LTC plan that would somehow give them the peace of mind and worry-free retirement age that they deserve.

About the Author

Need help with long term care planning? Krista Waugh devotes herself in writing articles related to insurance and personal finance. Read more of her articles about preparing and financing your long term care plan

Article Directory Source: http://www.articlerich.com/profile/krista-waugh/209982

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