The CLASS Act: Obamacare’s Other Public Option
Kathryn Nix /
The American people made it clear during the recent health care debate that they were leery of a public option.
But included in the Patient Protection and Affordable Care Act (PPACA) passed by Congress is the CLASS Act, a public option of a different sort: a government-run long-term care entitlement.
In recent research, Heritage analyst Brian Blase lays out why the CLASS program will not offer a better alternative to plans available in the private market but will instead suffer from severe adverse selection, either necessitating a taxpayer bailout or resulting in mounting premiums or reduced benefits for those who participate.
The CLASS program wasn’t included in the PPACA because it’s good policy—it was included to make the legislation look $70 billion cheaper. The program will require beneficiaries to pay premiums for five years before receiving any benefits, so it’s only a revenue raiser in its initial years. (more…)