Summary of the CLASS Act of 2009 (Community Living Assistance Services and Supports Act) Purpose of the BillTo help adults with severe functional impairments obtain the services and supports they need to stay functional and independent, while providing them with choices about community participation, education and employment.Background
Currently there are 10 million Americans in need of long term services and supports, and the number is expected to increase to near 15 million by 2020.
Most private-sector disability or long-term care insurance plans are constrained in the insurance protection they can offer at an affordable price, and neither Supplemental Security Insurance (SSI) nor Old, Age, Survivors, and Disability Insurance (OASDI) programs have any benefit differentials related to the extent and character of the disability. Thus, most Americans who have or develop severe functional impairments can only access coverage for the services critical to their independence (such as housing modifications, assistive technologies, transportation, and personal assistance services), through Medicaid. Their reliance on Medicaid for critical support services creates a strong incentive for them to “spend down” assets and remain poor and unemployed. With Medicaid paying 50% of the costs of long term services, increased expenditures on long term services are expected to add $44 billion annually to the cost of Medicaid over the next decade.
Senate bill - S.697
Title: A bill to amend the Public Health Service Act to help individuals with functional impairments and their families pay for services and supports that they need to maximize their functionality and independence and have choices about community participation, education, and employment, and for other purposes. Sponsor: Sen Kennedy, Edward M. [MA] (introduced 3/25/2009)
House Bill - H.R.1721
Title: To amend the Public Health Service Act to help individuals with functional impairments and their families pay for services and supports that they need to maximize their functionality and independence and have choices about community participation, education, and employment, and for other purposes. Sponsor: Rep Pallone, Frank, Jr. [NJ-6] (introduced 3/25/2009)
Community Living Assistance Services and Supports Act or the CLASS Act - Amends the Public Health Service Act to create a national, voluntary disability insurance program (CLASS program) under which: (1) all employees are automatically enrolled, but are allowed to waive enrollment; (2) payroll deductions pay monthly premiums; and (3) two-tiered benefits are provided, based on the level of disability, to purchase nonmedical services and supports that the beneficiary needs to maintain independence. Establishes the Independence Fund within the Treasury. Requires the CLASS program to be treated for tax purposes in the same manner as a qualified long-term care insurance contract. Amends the Social Security Act to require each state to: (1) assess the extent to which personal care services providers are serving or able to serve as fiscal agents, employers, and providers of employment-related benefits for personal care attendant workers, who provide personal care services to individuals receiving benefits under this Act; (2) designate or create entities to serve such purposes; and (3) ensure that such entities will not negatively alter or impede existing programs, models, methods, or administration of service delivery that provide for consumer controlled or self-directed home and community services, impede the ability of individuals to direct and control their home and community services, or inhibit individuals from relying on family members for such services. Requires the Secretary of Health and Human Services to establish a Personal Care Attendants Workforce Advisory Panel to examine and advise the Secretary and Congress on workforce issues related to personal care attendant workers. Amends the Internal Revenue Code to allow: (1) a deduction for premiums paid for the CLASS program; (2) a credit CLASS program enrollees with low income; and (3) a credit for employers for the cost incurred to automatically enroll employees and withhold monthly premiums.
Congressional Hearings
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About the Other Critical LTSS Provision in Health Care Reform Legislation |
About the CLASS Act - 111th Congress |