Hot Topics of Discussion in Long-Term Care: The CLASS Act
LTC is on the top of mind for agents more now than the recent
Long-Term Care Awareness Month . During my travels to insurance meetings
and conferences, LTC agents say the CLASS Act is a big thing.
What is the CLASS Act?
According to the Kaiser Family Foundation, a leader
in health policy and communications, the
Community Living Assistance Services and Supports (CLASS) Act is a national,
voluntary insurance program to facilitate community living services and supports.
The program will compete against private insurance by providing individuals with
a cash benefit to purchase non-medical services and supports necessary to maintain
community residence.
Some of the program highlights include:
Financing is obtained through monthly premiums paid by voluntary payroll deductions.
Working adults will be automatically enrolled in the program, unless they choose
to opt-out.
To qualify for benefits individuals must be 18 years old.
Individuals must contribute monthly premiums to the program for at least five years
before receiving cash benefits.
Mickey Batsell, a Texas
Long-Term Care professional, takes an optimistic approach regarding the new legislation.
“I think the CLASS Act will give independent agents another opportunity to serve
the public,” says Batsell. “The CLASS
Act will generate additional questions regarding the public option vs.
a private plan, but it will not put agents out of business. Agents specializing
in Long-Term Care are better equipped to educate the public on their perception
of each plan. The biggest challenge has always been letting people know Medicare doesn’t
cover LTC expenses.”
“The CLASS Act will not have an immediate benefit for seniors,” says Batsell. “Since
you have to be under the plan for five years before making a claim, the plan will
most likely only benefit those who are 57 years old and younger.”
Even with the program, it could take up to eight years
before agents are directly impacted by it. For example, the Health and
Human Services Director will have two years to come up with rules and regulations
and, as Mickey stated earlier, an individual has to be under the plan for five years
before making a claim. This gives agents plenty of time to get up-to-speed with the
details and language of the proposed program.
How to Prepare for the CLASS Act
As for now, the best way to prepare for the program is to be aware of its
status and any updates or changes that may occur. Agents will need to be knowledgeable about the details in order to answer questions
and explain the benefits and drawbacks to their client base.
Michael Wilson, a Delaware
MetLife agent, says that it’s important to take extra time and sit down with prospects
and clients in order to educate them about their insurance options.
“Clients aren’t making moves right now because they aren’t confident in the marketplace
or aware of the pros and cons of all their options,” says Wilson. “As industry professionals,
we need to listen to their objections and provide them with the tools and resources
they may need in order to overcome their fears and make confident decisions about
their future.”
Agents and carriers have been educating the marketplace for years about Long-Term
Care through awareness campaigns, seminars, print materials and word-of mouth. However,
the social media world has proven a big success for those willing to push up their
sleeves and dig in!
CLASS Act educational resources:
OpenCongress.org
CLASS Act Fact
Sheet
Kaiser Family Foundation CLASS
Act Issue Brief
Let me know how your thoughts about the CLASS Act and how you plan to prepare or
educate your prospects and clients.
Email me at Jim_Wallace@TWGcapital.com
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