It turns out, the U.S. government cannot run a voluntary insurance scheme. Who knew.
The Washington Post reports that the Obama administration has officially scuttled ObamaCare’s long‐term care entitlement program, known as the CLASS Act. Note the time stamp:
Obama pulls plug on troubled long‐term care program in new health law, citing design flaws
By Associated Press, Updated: Friday, October 14, 4:57 PM
WASHINGTON — The Obama administration says it is unable to go forward with a major program in the president’s signature health care overhaul law—a new long‐term care insurance plan.
Officials said Friday the long‐term care program has critical design flaws that can’t be fixed to make it financially self‐sustaining.
Health and Human Services Secretary Kathleen Sebelius told Congress in a letter that she does not see a viable path forward at this time. By law, implementation of the program was contingent on Sebelius certifying it financially sound.
The program was supposed to be a voluntary insurance plan for working adults regardless of age or health. Workers would pay an affordable monthly premium during their careers, and could collect a modest daily cash benefit if they became disabled later in life.
The problem all along has been how to ensure enough healthy people would sign up.
One ObamaCare entitlement program down, one more to go.