HHS SECRETARY HAS DECLARED CLASS* PROGRAM UNVIABLE AND ESSENTIALLY ENDED

WASHINGTON, OCT. 26, 2011 – “Even before the passage of Obamacare, we recognized that the Community Living Assistance Services and Supports (CLASS) Act had a critical design flaw and would never be self-sustaining and would go bankrupt,” said Rep. Cliff Stearns (R-FL), Chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations.  “After 19 months of trying, Health and Human Services (HHS) Secretary Sebelius announced that she does ‘not see a viable path forward for CLASS implementation at this time.’”

Stearns and others asked the witnesses about discussions and models on the financial viability of the CLASS Program.  In a joint statement, witnesses Kathy Greenlee, Assistant Secretary for Aging, Administration on Aging, HHS; and Sherry Glied, Assistant Secretary for Planning and Evaluation, HHS; stated, “When it became clear that benefit plans consistent with the plain language of the statute would not meet the solvency test, we looked at other potential benefit design options. But, at this time and as the report shows, we have not identified a way to make CLASS sustainable, legal and attractive to potential buyers at this time.”

Added Stearns, “As we’ve seen before, first with waivers, now with the CLASS Act, the Obama Administration over-promises, under-delivers and waits until implementation to admit its policy failures.”

*Community Living Assistance Services and Supports (CLASS) Program