With the story, The Washington Post.
Back when I blogged a lot about health care reform, I pegged the CLASS Act as a stinker. Looks like the White House figured it out:
An actuarial review that Health and Human Services has just released confirms [. . .] the administration could not design a long-term care program that would both hew to the health reform law — which requires that CLASS beneficiaries receive a minimum of $50 in benefits per day — and make the program actuarially sound.
Key problem: The program was voluntary, so adverse selection would keep the good risks out and leave the bad risks in. That never works.
Too bad, in a way, since there’s a need for the insurance, and the last time I looked some significant players were backing out of the market.
Though it’s a long-term loser, it was projected to bring in $86B more in the next few years than it would remove. So there’s a bit more hole in the budget for you.