How will the passing of the health care reform affect long term care insurance?


President Obama passed the health care reform bill and with it, there are some provisions that relate to long term care.

One of the important provisions is the CLASS Act, which stands for the Community Living Assistance Services Act. This is projected to have a strong impact on long term care insurance, since the new bill will enable all Americans to have access to this coverage. All Americans will be enrolled automatically into a long term care insurance program, but they still have the chance to opt out of the coverage, if they want.

It still has a lot of things that need to be threshed out but the essence of the CLASS Act would be:

  • It is a national insurance program that is available for everyone, employees and self-employed individuals alike.
  • Premium payments that will last five years, after which the person can be eligible for long term care services.
  • There are no medical screening processes to go through, thus people who already have health problems can still get the coverage.
  • These premiums can be deducted from one's payroll.
  • Those who claim from the CLASS Act can receive a cash benefit. This is for those who suffer from functional limitations and the money is to be used to pay for long-term care fees and services. The payments will continue for as long as it is needed.
  • The beneficiaries can pay for long term services in their homes.

The CLASS Act is aimed to transform the long term care insurance industry as it will help keep aging people from being admitted into a nursing home and help them stay at home, where they'd rather be.

Other sections of the bill that will benefit those who need long term care would be:

  • the provision that aims to strengthen the coverage for prescription medications as outlined in Medicare Part D. Under this provision, people can enjoy up to 50% discounts on brand-name medicines.
  • the implementation of stricter guidelines that require nursing home chains to be transparent with their ownership.
Was this question and its answer useful?
Not a bit
  • Currently 3.5/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Very useful
Have a question about insurance? Ask the experts