1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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