Providing the Best Solution An Overview of CLASS and LTCI
The Community Living Assistance Services & Supports Act (CLASS) is the long term care (LTC) assistance program in the health care reform law. Details about the program are not yet finalized, and because of the many unknowns surrounding CLASS, there could be some confusion or misunderstanding about the program. By familiarizing yourself with the main points of the CLASS Act, you’ll be better prepared to answers clients’ questions, educate them about their options, and ultimately assist them in finding the solution that best fits their needs.
Review the following objectives with clients to help decide what the best protection option is:
Client Objectives| CLASS Act | LTC Insurance* | Coverage aligned with the cost of care in their area | As low as $50 daily benefit1 on average | (maximum benefit amount set by Federal gov’t.) $50 - $500 daily benefit | (maximum benefit amount set by client) Affordable coverage that fits needs and budget | $240 estimated monthly premium on average1,2 | Premiums based on benefits selected by client | Access to coverage when they need it | 5-year vesting (waiting) period to access benefits | No vesting period to access benefits (once the elimination period and benefit triggers are met) | Ability to purchase coverage close to or during retirement | Designed for actively at work employees | (not retirees, those about to retire, or family members) Available from age 18 to 84 | (do not need to be actively at work) Flexible coverage and support when care is needed | Additional benefits and support services are yet to be determined | Benefit flexibility, plus access to caregiver support services and provider discounts | |
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After reviewing these details with your clients the comparison will reveal that the CLASS Act may not be the best solution for individuals looking for protection from a future long term care event. By educating you clients on these differences, you add value and build trust – which can result in new LTC insurance sales.
For more information, please contact BUA.
For Agent Use Only
*General description of LTCI benefits. Benefits will vary by carrier and state
1 – Benefit Details have yet to be determined and estimates are based on preliminary details of the program.
2 – Richard S. Foster, Chief Actuary of the Centers for Medicare and Medicaid (January 8, 2010) Estimated Financial Effects of the “Patient Protection and Affordable Care Act,” as Passed by the Senate on December 24, 2009, p.14.
