What is the Community Living Assistance Services and Supports (CLASS) Act?
Laura Adams, MBA
Quick Tip: National Long-Term Care Insurance is Coming
One of the little-known provisions of the new health care reform law is the creation of a national long-term care (LTC) insurance program called CLASS (Community Living Assistance Services and Supports Act). LTC insurance provides for the cost of daily living assistance or nursing home care that isn’t covered by health insurance, Medicare, or Medicaid. CLASS will be a self-funded, voluntary program for those who are employed or self-employed, regardless of health. Average annual premiums are expected to be $1,500 per year and the benefit will be at least $50 a day.
In light of the rising costs of long-term care (a facility can cost in excess of $200 a day and in-home care can be over twice that amount), CLASS benefits aren’t likely to be sufficient—but the program may be a cost-effective way to supplement a private LTC policy. The CLASS program should roll out by 2013 and will pay benefits to participants who’ve paid premiums for five years and have worked for at least three of those years.
For more information please refer to my full episode about long-term care insurance.
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About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.