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Community Living Assistance Services and Support (CLASS)
This act is a government sponsored long-term care plan that offers a basic level of guaranteed issue coverage to working Americans. It works like social security where you pay in advance for the benefit.
Many of the details are still in development. As of right now the plan:
- Can be offered by employers.
- Could allow automatically enrolling all actively at work employees or offering on a voluntary basis.
Premiums would be paid through a payroll deduction except for:
- The Self-Employed.
- Employees that want coverage but their employers do not offer it.
- Class has a mandatory 5-year vesting period before any benefits can be paid.
- Has no set premium yet. Estimates run from the mid $100-$200+ per month.
- Will pay a daily benefit of $50 to covered individual if they lose at least two ADLs or have significant cognitive impairment.
- May pay up to $75 a day or more on the level of ADL loss.
- Includes a benefit that will be payable for life if the individual remains ADL disabled.
- Has a benefit that will be adjusted for inflation.
- The Class Act is not disability coverage. This act is designed to help cover cost associated with Activities of Daily Loss.
Cost of Care Estimates (Annually)
Home Care: $25,000+
Assisted Living Facility: $41,000+
Nursing Home Semi Private: $72,000+
Nursing home Private: $81,000+
With the cost of care so high one should look into a Long Term Care policy to go along with the Class act.