Republicans Reveal HHS Memos about the CLASS Act
According to emails and other documents obtained pursuant to this investigation, senior leadership of HHS and Democratic staff in the Senate and House reviewed these warnings but did not change the law and did not inform the public of the doubts about the CLASS Act. Instead, the officials continued to claim that the program would be sound, sustainable, and actually produce budget savings that could help pay for other parts of the health care law.
While there has been little public discussion of the costs PPACA imposes on employers and states, this investigation revealed for the first time the extent to which HHS both anticipated these costs and yet tried to impose even more burdens. The documents we have obtained demonstrate that officials at HHS knew that the CLASS Act would saddle employers and states with, at minimum, a heavy administrative burden. The emails also reveal discussions inside HHS about combating low participation in the program by requiring employers to participate. HHS anticipated this mandate could be imposed at some future date, and it is possible they will still attempt to impose such a mandate through regulation.
Read the full report from the Republican Policy Committee here.
This was the brainchild of Senator Ted Kennedy. Both the Congressional Budget Office and the Centers for Medicare and Medicaid Services have expressed doubts on the sustainability of the program. To qualify for a benefit, a worker only has to be connected to a job for three years while paying premiums. Someone nearing the end of their career, who is experiencing declining mobility, could hang on and pay premiums for three years then continue to pay premiums for two more after leaving a job. Paying as little as in $7,500 in premiums over five years could potentially result in a benefit worth $25,000 per year. The adverse selection will be very high.
Let me see if I understand this correctly… The Dept. of Health and Human Services knew the CLASS Act was not financial viable without a coercive mandate or huge public subsidies and did not voice its concern? How is that newsworthy?
Here’s a brief analysis on the CLASS Act you might find of interest.