On Aug. 4, key leaders of the National Conference of Insurance Legislators (NCOIL) wrote to the U.S. Department of Health & Human Services (HHS) Secretary Kathleen Sebelius expressing concerns similar to NAIFA’s with the newly created government-run Community Living Assistance Services and Supports (CLASS) plan.
While supporting the goal of achieving financial security to cover long-term care services, NAIFA has long argued that there are better ways to help people plan for their long-term care needs including the offer of quality insurance products at their place of employment. The NCOIL letter notes the new federal long-term care insurance program “fails to apply the principles of risk management that are essential to any financially sound insurance program.”
NAIFA believes that none of the inevitable outcomes of the CLASS Act—collapse, mandatory participation, or taxpayer bailout—are good policy. We therefore support immediate repeal of the program. You can support the repeal of the unsustainable CLASS Act by encouraging your Members of Congress to cosponsor H.R. 1173 and S. 720.
NAIFA believes the following efforts are better suited to address the long-term care financing needs:
- Increase awareness of long-term care planning needs including increased funding for the Long-Term Care Clearing House run by HHS.
- Expand State Partnership Program that allows participants to keep some or all of their assets if they apply for Medicaid after they use their long-term care insurance benefits.
- Allow long-term care insurance to be included in employer-sponsored cafeteria plans and flexible spending arrangements so premiums could be paid for using pre-tax dollars, making long-term care insurance more accessible for all Americans.
NAIFA is also a proud supporter of the 3 in 4 Need More long-term care awareness campaign. The 3 in 4 campaign focuses on four objectives.
- Spread the word among the public that "3 in 4 Need More".
- Support Congressional moves to provide additional tax deductions or rebates to help people better afford long term care insurance.
- Stimulate others in industry, education, government to join the "3 in 4 Need More" campaign, making use of the logo and other visuals to spread the word.
- Educate the public that long term care insurance or federal entitlement plans may not be a solution for everyone, but everyone needs a long term care plan.
