The House Energy and Commerce Committee yesterday voted 33-17 in favor of H.R. 1173, a measure to kill the CLASS Act and the federally run long-term care insurance program it would create.
NAIFA and other critics have provided many reasons why the CLASS Act is unsustainable and potentially dangerous. In October, the Department of Health and Human Services came to the same conclusion, with Secretary Kathleen Sebelius announcing that the agency could not successfully implement the law.
So if HHS has no intention to act, why does it matter if CLASS remains on the books? For one thing, officials at HHS could change their mind (or new appointees could reexamine the matter) and decide to move forward with a program likely to hurt the people it is supposed to help, impose harsh regulations on the insurance industry, require a government bailout, or all of the above. Secondly, the Congressional Research Service has concluded that if the law is not repealed, a federal court could force HHS to create a CLASS plan, even if the department remains convinced that the plan would fail.
There is no reason to let this bad legislation linger. NAIFA commends the members of the Energy and Commerce Committee for acting to address the matter and encourages the full Congress to pass a repeal measure quickly.
While the CLASS Act is not the answer, Americans' lack of long-term care insurance remains an issue. For some better ideas, visit the 3 in 4 Need More campaign.
