All one had to do, even if they weren’t an accountant or bean-counter, was look at two central themes of this law. First one was the no disqualification due to a pre-existing condition. While trying to get everyone covered and to reduce the financial burden of health care, especially care needed for things like cancer and other horrific diseases, was admirable, there was no way it could be sustained, especially since insurance companies couldn’t charge those folks more than healthy people.
The other financial burden of the health care law was a little more difficult to ascertain. The Community Living Assistance Services (CLASS) was going to be voluntary insurance plan that would pay a “reasonable” daily cash benefit for anyone who became disabled. The problem was since the program was voluntary (unlike regular insurance under Obama Care) and was not subject to denial due to health reasons. There was a significant question whether or not it could be sustained and not become a burden on the taxpayer.
Well, it looks like it was going to be a burden;
But a central design flaw dogged CLASS. Unless large numbers of healthy people willingly sign up during their working years, soaring premiums driven by the needs of disabled beneficiaries would destabilize it, eventually requiring a taxpayer bailout.
After months of insisting that could be fixed, Health and Human Services Secretary Kathleen Sebelius finally acknowledged Friday she doesn’t see how.
“Despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time,” Sebelius said in a letter to congressional leaders.
The law required the administration to certify that CLASS would remain financially solvent for 75 years before it could be put into place. (Source: AP News)
I will admit to a little amazement that someone from the spend-at-all-costs Obama Administration would actually admit that their “dear leader” might actually be wrong. I am also amazed that they are willing to throw a portion of Obama Care under the bus for something as small as not being able to pay for it. Heck, what’s another couple hundred billion dollars slung around the necks of the American taxpayer.
Oh, and one more thing: transparency, whodda thunk it?