Obama pulls the plug on long-term care

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.

 

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One thought on “Obama pulls the plug on long-term care

  1. […] Program  :: Je.. Obama drops long-term health care program – CNN | ehealthjournal.net Obama pulls the plug on long-term care « Actuarial Opinions U.S. Pulls Plug on Long-Term Care Program | Wyoming News Obama administration pulls part of […]

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