AdamT
DP Veteran
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CLASS was a voluntary insurance plan to help provide long-term care for the elderly and infirm. The bill required that the trust fund be solvent over a 75-year period. Not enough people signed up (funded) for it to be solvent over that period of time.
Why didn't people sign up? It would have been less expensive than private long-term care policies. Publicity? How many people knew about it? It was not funded to be marketed adequately. People not have enough extra income to spend for something 30 years down the road? People not have any income to spend for something 30 years down the road? All of the above?
Before the bill passed the CBO predicted 5% of the population would sign up, the CMS actuary said 2.5%, and AAA (American Academy of Actuaries) said 6%. About 5% of Americans currently have private long-term-care insurance.
The problem with the program, ironically, was the lack of a mandate. No one in his right mind would sign up for the insurance until he really needed it. Thus, there wouldn't be a big enough pool to cover benefits.