Long-term care, the other new entitlement

San Francisco Chronicle ^ | 1/5/10 | Debra J. Saunders

[SmithL]

Inside the House and Senate health care bills lurks a ticking time bomb - a new federal entitlement, under the Community Living Assistance Services and Supports (CLASS) Act, that would allow Americans to buy into a voluntary federal long-term care insurance program.

The main problem, as Josh Gordon, policy director for the fiscal-watchdog group the Concord Coalition, noted, is that CLASS, which has passed "below the radar" of most Americans, is a poorly designed "gimmick." While Washington would start collecting CLASS premiums in 2011, CLASS would not pay benefits for five years. So, because it charges for 10 years, but only pays out in five, CLASS appears to be a deficit cutter in the health care bill's 10-year budget window.

Paul Van de Water, a senior fellow for the left-leaning Center on Budget and Policy Priorities, which supports CLASS, noted that the five-year waiting period will keep people from enrolling for immediate benefits.

Besides, because Congress is "very sensitive" to the criticism that it used CLASS to keep the health care bill from adding to the deficit over 10 years, Van de Water told me, both houses passed bills that balance without the CLASS windfall.

OK, but I fear the joint conference committee's final version won't be balanced without the CLASS money.

And even if the final health package does balance, CLASS will start running in the red 10 years after it starts writing checks, according to Richard S. Foster, chief actuary for Medicare and Medicaid.

[RC2]

Any time the government collects money, years ahead of any benefits being payed out, be careful. The money won’t be there when needed.....they will spend it on other things. Look at Social Security. It’s all phony.

[Buckeye McFrog]

behold the latest Federal Ponzi Scheme

[CharlesWayneCT]

So you pay premiums now, but in order to keep you from buying the insurance and immediately using it, they make you wait 5 years before you get the benefit.

Sounds like they are protecting themselves against pre-existing conditions.

Which is a smart thing, but supposedly is exactly what they were FIXING about insurance — that it wouldn’t cover you for things you already knew you needed.

[ridesthemiles]

The entire bill is front-loaded in payment of premiums and back-loaced in benefits and payouts for services.

Try telling that to your neighbors- I have, and I get blank stares.

Wonmder where the lady is that Hannity kept playing her happy comments about NObama now going to pay her car payment-rent-gas for car, etc? If she has been waiting for those checks to arrive, she must be starving by now.

[ridesthemiles]

There has to be a challenge to anything that makes you pay for something when you are not getting anything in return.

[CharlesWayneCT]

There’s a lot of insurance that won’t cover certain things within certain initial time periods.

For example, I bought an “accidental damage” policy for my laptop that wouldn’t cover anything for 2 months after purchase.

Some life insurance policies won’t cover certain types of death within the 1st two years, like suicide.

If you are already in a long-term care situation, why should you be able to buy “insurance” that would immediately cover your long-term care? If you could, why would anybody pay a dime for the insurance, until they actually needed long-term care? And if they all waited until the needed it to buy the insurnace, wouldn’t the insurance cost more than just paying for the long-term care, unless the insurance company is in business to lose money?

The whole point of insurance is that lots of people pay for something and get nothing in return, so that the few people who DO need it get full coverage for a fraction of the price.

[sportutegrl]

Like Social Security and Medicare, it will be impossible to get rid of. After paying for YEARS into this scheme, people will want their benefit. This is why we can't get rid of SS. How do we fund current recipients without revenue from current workers, who will then want their benefit?

For the Dems, however, this is not a bug, it's a feature.

[a fool in paradise]

Ponzi jumped the shark. This financial shell game will not be sustainable.

[The Great RJ]

With the death panels and rationing of Obamacare there won't be much need for long term care in the traditional sense. Perhaps long term care under Obamacare will be administered at euthanasia centers.

[proudpapa]

This Ponzi scheme provides $50 worth of daily benefits and there is no inflation protection.

I wonder how much $50 will buy in the year 2030? Maybe an hour of in Home Care. Maybe less.

FRiends, I happen to be a LTC specialist. If any of you have questions about LTC insurance or need assistance finding an honest, reputable INDEPENDANT specialist an your area...just let me know.

Thanks, Proudpapa