October 14, 2011 6:56PM 

# The Friday Bad News Dump: CLASS Dismissed 

By [Michael F. Cannon](https://www.cato.org/people/michael-f-cannon) 

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It turns out, the U.S. government cannot run a voluntary insurance scheme. Who knew.

The *Washington Post* [reports](http://www.washingtonpost.com/business/obama-pulls-plug-on-troubled-long-term-care-program-citing-design-flaws/2011/10/14/gIQAX3oNkL_story.html) that the Obama administration has officially scuttled [ObamaCare](www.cato.org/bad-medicine/)’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
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> 
> 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.
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> Officials said Friday the long-term care program has critical design flaws that can’t be fixed to make it financially self-sustaining.
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> 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.
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> 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.
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> The problem all along has been how to ensure enough healthy people would sign up.

One ObamaCare entitlement program down, one more to go.

##### Related Tags 

[Health Care](https://www.cato.org/health-care) 

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