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House advances bill terminating the CLASS Act

By Pete Kasperowicz - 01/31/12 07:53 PM ET

The House on Tuesday evening approved a rule that will govern debate on a bill that would repeal an element in the 2010 healthcare establishing a voluntary long-term healthcare program that the Obama administration has admitted is not financially viable.

Members approved the rule in a 251-157 vote in which 14 Democrats joined all voting Republicans in support of the rule.

The House approved the rule after a debate in which Republicans argued that the administration's rejection of the program shows that it can safely be repealed. Rep. Pete Sessions (R-Texas) also argued that the long-term care program was inserted into the healthcare law as a way to help sell the overall bill, even though it has now been shown to be unworkable.

"The CLASS Act was a budgetary gimmick introduced by congressional Democrats in the Obamacare bill to fit a 10-year budget score," Sessions said during the debate. "Built on an unstable foundation, this long-term health insurance system was broken from its inception, and yet was used to sell the Obamacare to those who did not fully comprehend its future implications."

Under the 2010 law, the Community Living Assistance Services and Supports (CLASS) program was to be a voluntary program under which people could pay into a pool that provides long-term care. But the program was to be funded only with premiums from people in the program, and the Obama administration found that the program as set up would not work.

Sessions said on the floor that there are serious doubts that anyone who is healthy would sign up for the program, which would make it especially hard to fund.

"Anyone who is healthy and above the poverty line would most certainly turn to the private sector, leaving the program woefully underfunded," he said. "These are the facts; the program is not viable and not sustainable."

As expected, Democrats argued that the program should not be eliminated just because it has been found to be unworkable, and said that finding should prompt the government to find a way to make it work.

"It's true that the Obama administration has suspended enactment of the CLASS Act," Rep. Jim McGovern (D-Mass.) said. "They have done so after carefully assessing how they could implement a long-term, financially stable class program.

"Unfortunately, they do not see a way forward at this particular point, but that doesn't mean we should just give up, throw up our hands and walk away. While the CLASS Act is a sound premise, it clearly needs more work if it's going to be a viable program."

Approval of the rule allows members this week to take up the bill, H.R. 1173. The rule allows for an hour of debate on the bill, and up to three hours of debate on amendments. Three Democratic amendments have been filed so far, including two that would prevent the repeal of the CLASS Act until it has been replaced or if repeal increases Medicaid spending.


Source:
http://thehill.com/blogs/floor-action/house/207807-house-advances-bill-terminating-the-class-act
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