Customers who can’t afford to buy long-term care insurance might soon have an opportunity to contribute to a less-costly federal insurance program.
The Community Living Assistance Services and Supports (CLASS) Act, which was included in the health care reform law, will probably be funded by voluntary payroll contributions. Employees 18 and over will probably be eligible to sign up.Once you’ve contributed for at least five years, you’ll be eligible for a cash payment to help with long-term care. To receive the payment, you will have to prove that you require assist with basic daily activities, like eating or obtaining out of bed (long-term care insurance policies have similar criteria). The minimum daily benefit will probably be $50 a day, according to the Department of Health and Human Services.
That’s far short of the amount needed to pay for nursing home care, but CLASS supporters say the program isn’t designed to cover all long-term care costs. Instead, the program is expected to supplement care from family members, private savings and long-term care insurance.