Legislation Would Create National Insurance Plan for Disabled Adults

WASHINGTON–Lawmakers in the House and Senate introduced
legislation earlier this month that would create an insurance
program for adults who become functionally disabled.

“The Community Living Assistance Services and Supports (CLASS)
Act of 2007” bills (S. 1758 and H.R. 3001) were introduced July 10
by Sens. Ted Kennedy, D-Mass., and Tom Harkin D-Iowa, and Reps.
John Dingell, D-Mich., and Frank Pallone Jr., D-N.J. The measure
would provide a cash benefit to help people with functional
impairments pay for services and supports that they need to
maximize their independence and give them more choices about
community participation, education and employment.

The insurance program would be financed by voluntary payroll
deductions of $30 per month and would provide benefits to adults
who become severely functionally impaired. All working adults would
be enrolled in the program automatically unless they decided to opt
out. To qualify for the benefits, individuals would have to be at
least 18 years old and have contributed to the program for at least
five years.

“Too many Americans are perfectly capable of living a life in
the community, but are denied the supports they need,” Kennedy
said.

There would be two benefit tiers under the program. Tier 1
benefits–$50 per day–would be payable to people who have two or
more impairments in dealing with activities of daily living. Tier 2
benefits–$100 per day–would be payable to those who have four or
more impairments on ADLs.

The benefit payment would be posted to a debit account each
month. People who didn’t use the full monthly amount would be able
to roll it over from month to month, but not year to year. Once a
person becomes ineligible for CLASS benefits, the payments would
end. If an eligible individual chose to move into an institution,
the benefits would be used to settle those expenses.

“As America continues to age, we are faced with an impending
crisis in long-term care,” Pallone said. “Today, we offer a new
approach that builds upon our existing safety net system and helps
our elderly and disabled finance the long-term care they need to
remain active and productive members of their communities.”

The text of the bills should be available soon at http://thomas.loc.gov.