Obamacare’s CLASS Act Program Must Be Repealed
Today, the House Committee on Energy and Commerce will conduct a markup on H.R. 1173, the Fiscal Responsibility and Retirement Security Act of 2011, which I co-authored with Dr. Charles Boustany (R-LA). This legislation would repeal Obamacare’s failed CLASS Act program—which was deemed insolvent back in March.
As I’ve mentioned in prior posts, the CLASS Act program is an ill-conceived component of Obamacare that aimed to provide long-term care insurance for the elderly and disabled. Since its inception, Republicans have argued that the math behind the program simply didn’t add up. Finally, in October, Health and Human Services Secretary Kathleen Sebelius admitted it was unsustainable. Unfortunately, that hasn’t curbed Democratic support.
Recently, Rep. Henry Waxman (D-CA) announced he would oppose any efforts to repeal CLASS and that the program ‘has not been cancelled and simply stands in recess.’ However, the fact that Rep. Waxman would continue to support this failed program is troubling. The Congressional Budget Office (CBO) reported that the CLASS Act is not financially sound and may require a massive taxpayer bailout in order to stay afloat. In essence, this program does the exact opposite of what was originally intended.
Initially, the CLASS Act program, called a “cost-saving” measure, was alleged to offset $86 billion of Obamacare’s costs during the program’s first ten years. In order to do so, it would collect ten years of premiums while only paying out five years in benefits. Fortunately, the CBO has since acknowledged that these tricky accounting tactics do not reflect a viable plan.
Despite the program’s collapse, repealing the CLASS Act is more important than ever before. We must ensure that Congressional Democrats do not attempt to enforce another of the Obama Administration’s broken programs. I urge you to contact Members of Congress and voice your support for repeal of the dangerous CLASS Act program.
To watch my opening statement on the importance of repealing the CLASS Act, visit my YouTube page here.