December 30, 2009
The so-called CLASS plan would allow workers to sign up for a payroll deduction program similar to Social Security that would provide in-home assistance when they are older or disabled.
Participation would be voluntary, with fees and benefits to be determined on an actuarial basis.
Despite widespread concern about the potential impact on the federal deficit, the plan survived in the Senate bill. An amendment to delete the program failed to get the 60 votes needed.
The plan is getting strong support from groups representing seniors and the disabled, two powerful lobbies.
A study by the centers for Medicare and Medicaid suggested that the program will stop paying for itself by 2025, and then run a deficit. However, another agency, the non-partisan Congressional Budget Office, found reason for optimism, estimating the program will probably remain solvent over a 75-year period.
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Filed under Elderly care