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AP Exclusive: LONG-TERM CARE plan alarms ignored – Yahoo! News

September 14, 2011

AP – Vice President Joe Biden, right, speaks with Health and Human Services Secretary Kathleen Sebelius during …

AP Exclusive: Long-term care plan alarms ignored

By RICARDO ALONSO-ZALDIVAR, Associated Press – 10 mins ago

WASHINGTON – Even as leading Democrats offered assurances to the contrary, government experts repeatedly warned that a new long-term care insurance plan could go belly up, saddling taxpayers with another underfunded benefit program, according to emails disclosed by congressional investigators.

Part of President Barack Obama’s health care law, the program is in limbo as a congressional debt panel searches for budget savings and behind the scenes, administration officials scramble to find a viable financing formula.

A longstanding priority of the late Sen. Edward M. Kennedy, D-Mass., the Community Living Assistance Services and Supports program, or CLASS, was spliced into the health care law despite nagging budget worries. Administration emails and documents reveal that alarms were sounded earlier and more widely than previously thought. Congressional Republicans seeking repeal of the program provided the materials to The Associated Press.

“Seems like a recipe for disaster to me,” William Marton, a senior aging policy official in the administration, wrote in an October 2009 email. Marton explained his concern that large numbers of healthy people would not willingly sign up for CLASS, creating a predicament in which soaring premiums for a smaller group of frail beneficiaries would destabilize the program.

That central design flaw has dogged CLASS from the drawing board, and it may turn out to be insurmountable without making the program mandatory for most workers. CLASS remains vulnerable to repeal.

via AP Exclusive: Long-term care plan alarms ignored – Yahoo! News.

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