Rep. Neal: I support CLASS Act

By Julian Pecquet - 12/15/11 10:39 AM ET

The Democratic co-sponsor of a bipartisan long-term care proposal tells The Hill he doesn't support his Republican colleague's efforts to repeal the healthcare reform law's CLASS Act.

Rep. Richard Neal (D-Mass.) is partnering with Rep. Charles Boustany Jr. (R-La.) on legislation to incentivize people to buy private long-term care insurance, The Hill first reported Tuesday. The partnership has raised eyebrows because Boustany is simultaneously leading the charge to repeal the healthcare law's long-term care CLASS Act.

"Congressman Neal does not support support the repeal of the CLASS Act, and he does not support the repeal of healthcare reform," Neal spokesman William Tranghese said. "The specific and important legislative proposal he does support, which is one of the key provisions of the Long-Term Care Affordability and Security Act, has historically enjoyed bipartisan support … and any suggestion that there is a connection between this reasonable proposal and the CLASS Act is misinformed."

The Neal-Boustany bill tracks closely to legislation that has been around since 1994 and was championed in years past by former Reps. Barbara Kennelly (D-Conn.) and Earl Pomeroy (D-N.D.). It would allow consumers to buy long-term-care policies through tax-free employer cafeteria plans and flexible spending arrangements, while improving consumer protections for long-term-care policyholders.

Neal barely lost the race to become the top Democrat on the powerful Ways and Means Committee last year. He voted for the healthcare reform law both times it came up in the House.

HHS put the program on hold in October after failing to find a way to make the program sustainable, and Republicans since then have quickly rammed repeal through the Energy and Commerce Committee. House GOP leaders plan to bring repeal up in the Ways and Means Committee early next year and quickly bring it to a vote on the House floor, putting Democrats in the awkward situation of defending a program that the Obama administration says is unsustainable.

Neal's support of Boustany's bill comes at an awkward time because it gives Republicans more cover to repeal CLASS without looking like they have no alternative to the country's long-term-care crisis. Only about 8 million Americans have long-term care insurance to help pay for nursing home and similar services, which aren't covered by Medicare.

"I feel very strongly that we should repeal CLASS," Boustany said this week, "but we need to put things in place or start something in motion to improve prospects for people to buy long-term-care insurance."

The CLASS Act is a voluntary payroll deduction program that gives beneficiaries a $50 daily cash benefit if they become disabled after paying premiums for at least five years. Connie Garner, a former top health aide to Sen. Edward Kennedy (D-Mass.) who is helping build private-sector support for the CLASS Act, said the Boustany alternative was "no substitute at all for what was the policy intent of CLASS. Not even close."