Community Living Assistance Services and Supports CLASS Grantmakers in Aging & Grantmakers in Health May 10, 2011 Kathy Greenlee Assistant Secretary for Aging U.S. Department of Health and Human Services

Key Principles Self-Direction: CLASS was written to maximize consumer choice and control over long term services and supports Premium-Financed: CLASS benefits must be financed from premiums and interest alone – no tax dollars No Medical Underwriting: CLASS enrollees will not have to pass medical underwriting

Background Title VIII of the Affordable Care Act Voluntary insurance program for the actively employed over age 18 Subsidized premiums for working students and those below the poverty line Benefit plan to be specified by 10/1/2012

Two Enrollment Mechanisms Employer Based: Employers can offer CLASS as a voluntary benefit and may provide payroll deduction Individual: Individuals can enroll directly with the CLASS program

Employer Enrollment Participating employers will be offered options as to how to enroll employees in CLASS: Auto Enrollment: employees will be automatically enrolled unless they opt-out Facilitated Enrollment: employers will provide information and may include CLASS as a regular benefit option with or without payroll deduction

Benefit Eligibility Criteria Vesting: enrollee must have paid premiums for at least 60 months to receive benefits Earnings: enrollee must have met earnings requirement – approximately $1,200 a year Functional Limitation: enrollee must need assistance with 2 or 3 activities of daily living

Cash Benefits Benefits will be paid in cash up to an average of $50 a day At least 2 benefit levels, based on level of impairment Benefit includes protection and advocacy services and advice and assistance counseling

Coordination of Benefits CLASS benefits will be coordinated with Medicaid Medicaid Home and Community Based Services waiver clients may be allowed to keep half their CLASS benefit Nursing home clients will be allowed to keep 5% of their CLASS benefit on top of their regular personal needs allowance

Advisory Panels CLASS Independence Advisory Council Members appointed by the President Role to make recommendation to the Secretary regarding selection of final benefit plans Personal Care Attendants Workforce Advisory Panel Members appointed by Secretary Role to advise Secretary on how to ensure an adequate long term services and supports workforce

Opportunities & Challenges CLASS needs to be attractive to encourage employers to participate Provisions related to inflation protection, earnings requirements, and potential for gaming are under review Ensuring the solvency of the final benefit plan remains paramount

Awareness Initiative US public still in denial about the need to plan for aging and disability AoA to launch national supportive services planning/awareness campaign ($15 million) Campaign will provide baseline education and promote planning for disability Campaign designed to complement and support roll-out of CLASS benefit plan Seeking partners to combine efforts and “move the needle” on making supportive services planning an integral part of retirement planning