Needed: Reform in Long-Term Care Financing | bloglongtermcare.com

"Most American adults are uninsured for long-term care and supportive services, such as home care or an assisted living community. This means many of us cannot afford the cost of a longer life or long-term disabilities. For these reasons, long-term care services and supports must be a part of any meaningful health care reform. In public policy, payment and perception, we’ve mistakenly segregated acute care and chronic care. For example, if someone over 65 suffers a stroke, Medicare jumps in with procedures and payments attempting to save the person. But upon release from the hospital, Medicare ignores that person’s less expensive, longer-duration need for supportive services. Nor does it pay for such things as Alzheimer’s care or other intensive long-term care that a young adult with a disability may need." . . . "Maintaining the status quo means many will continue impoverishing themselves and turning to Medicaid–a government program and de facto long-term care provider. Primarily paying for institutional care, its payments already fall far short of meeting true costs. Without financing reform, we’re simply cost shifting and avoiding the main issue–finance reform for longevity and chronic care. The CLASS Act (Community Living Assistance Services & Supports) introduced by the Senate Committee on Health, Education, Labor & Pensions is that opportunity. In the opt-out insurance plan, people would pay a premium of approximately $65 per month in return for a minimum daily benefit of $50 that they can self-direct. It would make private wrap-around insurance policies appealing because consumers would easily understand what their dollars buy and they’d know such a product could guarantee quality of life and fiscal security. It also could gain a state good housekeeping seal from state or federal governments, further enhancing consumer confidence in such a product. The Congressional Budget Office’s evaluation of the CLASS Act shows no cost to the government over the next 10 years, a positive savings of $2.5 billion in Medicaid in the first 10 years alone, and long-term sustainability. This would transform financing of long-term services and supports, assist America’s workers and future retirees, enhance intergenerational financial security, and promote choice and independence. Without a long-term care financing solution, America doesn’t have true health care reform." Needed: Reform in Long-Term Care Financing | bloglongtermcare.com