HCW Benefits Blog

Contributor:
Laura Bibb, JD, GBA, Compliance Officer
Hill, Chesson & Woody

HHS Secretary Kathleen Sebelius announced Friday October 14, 2011 that HHS will not be moving forward in implementing the CLASS Act at this time. Secretary Sebelius states “…despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time.”

The Secretary’s report to Congress includes a reference to a memo released by the CMS Actuary on April 22, 2010 stating that “[o]ver the longer term, expenditures would exceed premium receipts, and there is a very serious risk that the program would become unsustainable as a result of adverse selection by participants.”

While this announcement doesn’t require any action on the part of employers, it may cause employers who were considering relying on the CLASS Act as their sole long-term care offering to reconsider group long-term care plans.

The announcement also serves as a reminder that the implementation of healthcare reform is constantly changing and evolving.  We’ve already seen the repeal of the Free Choice Voucher provision and now the CLASS Act seems to be dead. The opportunities and challenges presented by reform can really be a twister! Let HCW help you stay current and up to date on all the changes.

HCW has developed a customized reform plan of action that tracks these changes and allows employers to strategically plan for healthcare reform. Contact us to learn more about how we can help your organization navigate through the storm.