Navigation Links
The CLASS Act: Retirement In-Security

WASHINGTON, July 28 /PRNewswire-USNewswire/ -- Well-intentioned legislation aimed at addressing the financial burdens faced by Americans who need long-term care services could leave elderly people exposed to substantial and unexpected costs, said Frank Keating, president of the American Council of Life Insurers (ACLI).

Under debate as part of health care reform, the Community Living Assistance Services and Supports (CLASS) Act would provide those who participate in a government-sponsored program $50 per day for long-term care services. Participants would have to pay a monthly premium that would be adjusted annually to maintain the program's solvency.

In a video and other materials available at, Keating explains the problems with the CLASS Act.

"The benefits received by program participants are a fraction of the real cost of long-term care services. Nursing home care now averages $203 per day and will rise to $740 per day in 30 years. Round-the-clock home health care services now cost $1,100 per day and will likely rise to $2,000 within five years. The $50-a-day benefit under the CLASS Act leaves a substantial cost gap," ACLI President and CEO Frank Keating said.

"It is very likely that many people will believe their long-term care needs are addressed by their participation in the program. In fact, studies show that many Americans already mistakenly believe Medicare covers their potential long-term care needs. The CLASS Act will serve to add to the confusion, and people will not take the appropriate steps on their own to address this crucial financial planning issue," Keating said.

Moreover, a recent independent study raises serious questions about the viability of the program, with a projected insolvency by 2022 ( It would take significant increases in premiums or infusion of billions of federal dollars to keep afloat such an entitlement program, Keating said.

"The fact is, no long-term care policy based on such a weak financial footing would be allowed on the market today," he said.

"Simply put, the federal government should not get into the business of providing long-term care insurance. It sets the stage for doing more harm than good to consumers," he said.

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association whose 340 member companies account for 93 percent of the life insurance industry's total assets in the United States, 94 percent of life insurance premiums and 94 percent of annuity considerations. In addition to life insurance and annuities, ACLI member companies offer pensions, including 401(k)s, long-term care insurance, disability income insurance and other retirement and financial protection products, as well as reinsurance. ACLI's public Web site can be accessed at

SOURCE American Council of Life Insurers
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Kingfisher Healthcare (KFH) Achieves World Class Quality Platform
2. ADDA Kicks Off AD/HD Awareness Campaign with Four Regional Conferences Beginning Sept. 29 and Series of Fall Teleclasses
3. A classic method for modeling skin cancer is featured in Cold Spring Harbor Protocols
4. First Circuit Court of Appeals Rules Against Philip Morris in Lights Class Action
5. Theater Classes Help Docs Bedside Manners
6. Tarpinian: Misclassification is Theft
7. New class of RNA molecules may be important in human cancer
8. Instrumentation Laboratory Named Top of Class by Respiratory Care Managers
9. Consumer Group: Hillary Clintons Mandatory Health Insurance Purchase Plan is an Act of War on the Middle Class Family That Cant Afford $12k Policy
10. SATELLITE BROADCAST: Consumer Group Says Hillary Clintons Mandatory Health Insurance Plan is an Act of War on the Middle Class that Cant Afford $12k Policy
11. Law Offices of Howard G. Smith Announces Class Action Lawsuit Against LCA-Vision Inc.
Post Your Comments:
(Date:11/25/2015)... ... November 25, 2015 , ... TyloHelo Inc , ... accessories. , Sauna accessories help improve the bather experience in the sauna, and ... styles for the purist looking for simplicity in design to accessories that encourage ...
(Date:11/25/2015)... ... November 25, 2015 , ... According to an article published November ... more widely heralded as a breakthrough for performing hernia repairs. The article explains that ... surgery is that it can greatly reduce the pain that a patient might otherwise ...
(Date:11/25/2015)... ... , ... The McHenry County law firm of Botto Gilbert Lancaster, PC ... J. Botto and Alex C. Wimmer. Attorneys Botto and Wimmer represented the claimant David ... 130884WC. , According to court documents, Adcock testified that on May 10, 2010 he ...
(Date:11/25/2015)... ... 25, 2015 , ... Brillianteen, McGaw YMCA’s student-produced musical show, ... 65th Anniversary Brillianteen Revue, scheduled for March 4-6, 2016. Auditions for this final ... has been a treasured tradition for numerous families in the Evanston community. Over ...
(Date:11/25/2015)... ... November 25, 2015 , ... In honor ... Periwinkle Pioneers, individuals and groups responsible for advancing care for pulmonary hypertension (PH) ... nominated by the public, will receive special recognition throughout 2016 as part of ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... Research and Markets ( ) ... Future Horizons and Growth Strategies in the Japanese ... Segment Forecasts, Competitive Intelligence, Emerging Opportunities" report ... --> This new 247-page report ... drug monitoring market, including emerging tests, technologies, instrumentation, ...
(Date:11/26/2015)... November 26, 2015 ... addition of the  "2016 Future Horizons ... Cell Surface Testing Market: Supplier Shares, ... their offering.  --> ... the  "2016 Future Horizons and Growth ...
(Date:11/26/2015)... November 26, 2015 ... universitetssjukhus ser potential att använda SyMRI för ... för patienter med multipel skleros (MS) ... med SyntheticMR AB för att kunna använda ... sjukhuset. Med SyMRI kan man generera flera ...
Breaking Medicine Technology: