national, voluntary, payroll deduct insurance program – the class independence benefit plan class:...
DESCRIPTION
CLASS Act details Enrollment Employers are not currently required to participate Employees are auto enrolled by employers, with voluntary opt-out HHS to develop alternative enrollment procedures for: self-employed have multiple employers have non-participating employerTRANSCRIPT
National, voluntary, payroll deduct insurance program – The CLASS Independence Benefit Plan
CLASS: Community Living Assistance Services and Support
Eligible enrollees include any actively employed individual at least 18 years old. Qualified beneficiaries will receive cash benefit of not less than $50 per day.
The CLASS Act
2011• HHS develops enrollment procedures, benefit eligibility
assessment, disenrollment and payroll deduct procedures• President appoints 15 member CLASS Advisory Council
(likely beneficiaries, caregivers, actuaries, economists, etc.)• Development of 3 alternative benefit plans2012• Jan. 1 – enrollment begins• Oct. 1 – Secretary designates CLASS benefit plan2018 • Earliest payout of benefits
The CLASS Act Timeline
CLASS Act detailsEnrollment• Employers are not currently required to participate• Employees are auto enrolled by employers, with voluntary
opt-out• HHS to develop alternative enrollment procedures for:
self-employedhave multiple employershave non-participating employer
CLASS Act detailsPremiums• Established yearly based on act. analysis of 75-year cost
period• Initial premiums estimated to be $124-$240 per month• $5 nominal premium established for enrollees <100% pov
and full-time actively employed students <22 years of age
Benefit Triggers• Patterned after HIPAA LTCI triggers:
Functional limitation expected to last more than 90 daysInability to perform 2 or 3 ADLs ORCognitive impairment
CLASS Act detailsCash Benefits• $50 per day indemnity benefit / no lifetime limit
benefit not contingent on pay-in• Not payable until premiums paid in for 5 years• May be paid daily or weekly• Payments deposited into Life Independence Account
rollover option for lump sum payments to be deferred on a month to month basis, but not from year to year
Underwriting• No underwriting allowed
CLASS Act detailsRecalculation of Premiums• 10 years from program inception to gauge solvency, based
on 20-year look forward
• Premium increase does NOT apply to:poorstudents>65, not actively at work, have paid premiums for
at least 20 years• Premium increase WILL apply to:
student status changere-enrollment after 90-day premium lapse
CLASS Act Supplements?Viable?• High cost of participating in CLASS program poses
significant barrier to creating marketable supplemental coverage
• Impossible to supplement / coordinate with fixed indemnity coverage
• Benefit triggers for private LTCI and CLASS coverage are different – improbable that triggers will be met under both, simultaneously.
• Proof of claim requirements are significantly different