Community Living Assistance Services and Support Program (The CLASS Act): Government Funded Long Term Care Insurance

Page Reviewed / Updated - May 2014

 Misperceptions about Long Term Care Programs
This section of the website focuses on programs in which there are misperceptions and confusion about the elder care benefits they provide.  We include this information so families understand what programs are not relevant and do not extend their efforts pursuing them.  Search for programs which do provide financial assistance here.

What is the CLASS Act

The CLASS Act, also referred to as the CLASS Program or more formally as the Community Living Assistance Services and Support (CLASS) Act was  a long term care insurance program created by the federal government and signed into law in March 2010 under Affordable Care Act.   In October, 2011 the law was repealed and the CLASS Act never came to be. 

Had the program been realized, its effect would not have been felt for many years.  Like long term care insurance, program participants would have had to pay monthly premiums for a number of years prior to receiving financial assistance from the program to pay for nursing home, assisted living and other forms of elder care.

While conceptually a good idea, there were many questions about the long term feasability of the program which were never resolved due to the program's cancellation. 

Private long term care insurance is still an option for middle aged and young seniors in relatively good health.  Learn more about long term care insurance.

 

Benefits

The program would have paid for care of qualified individuals up to $50 per day.  The type of care and other costs considered acceptable by the program included nursing home, assisted living, home modifications to allow seniors to remain living at home and cash payouts for personal care and transportation assistance.

To be qualified for benefits, a program participant would have had to pay into the program for 5 years and require assistance with 2 or more Activities of Daily Living (or be cognitively impaired).

 

Program Cost

Expected premiums for the CLASS program would have been as low as $5 / month for individuals living below the poverty line.  For a middle-aged individuals with average household income of approximately $50,000 / year the expected monthly premium was to be $125.