Secretary Sebelius Will Not Find the Right Formula to Fix CLASS

Brian Blase / February 09, 2011

According to Health and Human Services (HHS) Secretary Kathy Sebelius, the design of the Community Living Assistance Services and Supports (CLASS) program has basic flaws, but the bureaucracy will fix those flaws with hard work and deep thinking. Sebelius spoke on the CLASS program on Monday at a Kaiser Family Foundation briefing, and she outlined the Obama Administration’s updated technocratic thinking on this new government-run, long-term care entitlement created under Obamacare.

Sebelius was in part responding to the recent assault on CLASS from a wide breadth of experts. According to the President’s deficit commission, “The program’s earliest beneficiaries will pay modest premiums for only a few years and receive benefits many times larger, so that sustaining the system over time will require increasing premiums and reducing benefits to the point that the program is neither appealing to potential customers nor able to accomplish its stated function. Absent reform, the program is therefore likely to require large general revenue transfers or else collapse under its own weight.” The commission’s solution: repeal or radically rework CLASS. (more…)