(Image source: The White House)

 

BY CHRISTINA HARTMAN

 


For most critics -- it’s not the most controversial part of President Obama’s health care overhaul.

But the administration has announced one piece of the legislation has been put on hold indefinitely.

Part of the president’s signature legislative achievement called for a long-term care insurance plan. But now his Health and Human Services Secretary says the program as it stands isn’t financially solvent. (Video from The White House)

NY1 explains.

“The CLASS, or Community Living Supports program was set up to be a voluntary, long term care insurance plan. Working adults would pay a moderate monthly premium to receive benefits if they became disabled later in life. But it wasn't clear that large numbers of healthy Americans would sign up for the plan -- meaning it could face financial problems and require higher, unaffordable, premiums.”

And as CNN’s John King points out, the president’s Republican critics couldn’t be happier.

“The administration now says the law as written does not allow the long-term care program to be implemented in a way that would make it financially stable. Congressional Republicans say good riddance. They wanted to repeal that program any way.”

And that’s exactly the response from self-described conservative blog National Review -- which suggests -- one down -- lots more to go.

“This confirmation that Obamacare cannot in fact defy the laws of mathematics and accounting should serve as a warning regarding the implementation of the broader law...”

And Republicans aren’t resting on their laurels just yet. As The Hill reports, House GOP leaders now want to know what took so long, and they plan on holding a hearing to find out.

“The CLASS Act’s savings represent about 40 percent of the health law’s $210 billion in deficit reduction over a decade. Scrapping the program makes it easier for Republicans to repeal the entire law, as every presidential candidate has vowed to do.”

It’s true that the law is under siege from Republican critics in Congress and state legislatures. But Obama administration officials say this latest setback has nothing to do with the rest of the health care law.

And as NPR points out -- there’s support for finding a fix to the CLASS Act’s perceived insolvency.

“...they’ve put it in a medically induced coma while officials try to figure out if a cure can be found for what ails CLASS... HHS Secretary [Kathleen Sebelius] ... was equally clear that they are not seeking repeal of the measure, either. … The seniors group AARP urged the administration to keep searching for a way to make CLASS viable.”



 

Politics News

Key Piece of Health Care Law on Hold

October 15, 2011
(2:20)
Part of the president's health care overhaul called for a long-term care insurance plan. But insolvency concerns have put that part on hold.
   
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