NAIFA today issued the following statement in response to Health and Human Services Secretary Kathleen Sebelius's letter to Congress stating that HHS has suspended implementation of the CLASS Act:
"NAIFA applauds the Obama administration’s decision to abandon the unsustainable long-term care insurance program called the CLASS Act," said NAIFA President Robert Miller. "NAIFA supports the goal of achieving financial security to cover long-term care services. However, we believe there are better ways to help people plan for their long-term care needs, including the offer of quality insurance products at their place of employment."
NAIFA believes the following efforts are better suited to address the long-term care financing needs:
- Increase awareness of long-term care planning needs including increased funding for the Long-Term Care Clearing House run by HHS.
- Expand State Partnership Program that allows participants to keep some or all of their assets if they apply for Medicaid after they use their long-term care insurance benefits.
- Allow long-term care insurance to be included in employer-sponsored cafeteria plans and flexible spending arrangements so premiums could be paid for using pre-tax dollars, making long-term care insurance more accessible for all Americans.