The Continuing Saga Of CLASS

[Mr_Ed]

There are group LTCi policies where you can have AIDS, MS, Parkinsons--and only have to worked the prior six months (NOT THE NEXT 3 years)--and you don't have to wait 5 years to make a claim.

It is intellectually dishonest to suggest that a private LTC insurer can get such a product approved and be actuarially sound, yet the CLASS Act (which will charge even higher premiums) is not actuarially sound.

nadm
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Oh, and if you're 18 yrs old, your premium is $5.00/month



Wrong. Read it closer next time.

 

[Arthur Rudnick]

"This is mean, but have you seen a Wal-mart greeter lately?"

Hey, it's dangerous being a Wal-mart greeter. Did you ever read this story? It was in all the papers.........

Ablonde decides to try horseback riding, even though she has had no lessons, norprior experience. She mounts the horse unassisted, and the horse immediatelysprings into motion. It gallops along at a steady and rhythmic pace, but theblonde begins to slide from the saddle.
In terror, she grabs for the horse's mane, but cannot seem to get a firm grip.She tries to throw her arms around the horse's neck,but she slides down the horse's side anyway. The horse gallops along, seeminglyimpervious to its slipping rider.
Finally, giving up her frail grip, the blonde attempts to leap away from thehorse and throw herself to safety. Unfortunately, her foot has become entangledin the stirrup and she is now at the mercy of the horse's pounding hooves asher head is struck against the ground over and over.
She is mere moments away from unconsciousness when to her great fortune…………..

Frank,the Walmart greeter, sees her dilemma and unplugs the horse.

And you thought all they did was say Hello.

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Oh, and if you're 18 yrs old, your premium is $5.00/month and if you're at the poverty level, your premium is $5.00/month.

"Wrong. Read it closer next time".

My apology sir, it reads:

$5/monthly premiums for students and low-income enrollees.

I stand corrected, you've convinced me that CLASS Act is a wonderful thing.

I work, SIGN ME UP!

 

[scagnt83]

There are group LTCi policies where you can have AIDS, MS, Parkinsons--and only have to worked the prior six months (NOT THE NEXT 3 years)--and you don't have to wait 5 years to make a claim.

It is intellectually dishonest to suggest that a private LTC insurer can get such a product approved and be actuarially sound, yet the CLASS Act (which will charge even higher premiums) is not actuarially sound.

nadm
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.

And how great is the group ltci business these days? The rate increases are often worse with group ltci, not to mention major players dropping out of the market.

But the one key difference in group LTCI, is that the policy is better and more trusted, and they will have a much higher ratio of healthy people.

Its the ones who are denied SI or are an "expected loss" within a group plan that gets dropped, that will be signing up for this program; that is a totally different demographic than any normal business that would look into LTCI!!

Intellectual dishonesty would be denying the true demographics of the majority that would take part in this program, and how that would actuarialy affect it.

 

[Arthur Rudnick]

There are a lot smarter prople than me who have labled
CLASS nothing more than a scam.

The link below was released today and if you have interest in learning more about this bogus Program, it's a good read.

 

[LTCFP]

Interesting PDF, thanks for sharing!

 

[Mr_Ed]

In order to determine if any insurance product is "sustainable" or "financially viable" we need to know:

1) What benefits will be paid to each beneficiary and
2) The amount of the premium each participant must pay.


Therefore, the only way to determine if the CLASS Act is "sustainable" and "financially viable" is to analyze the benefits that will be paid to each beneficiary and weigh those benefits against the premium paid by each participant.

I'll give a dinner for two to Ruth Chris' steakhouse to anyone who can tell us:

1) What benefits will be paid for each beneficiary of the CLASS Act and
2) What is the amount of the premiums that each participant will have to pay?

Once we have that information we can determine if the program is "viable" and "sustainable".

The first person to provide that information, in the next 7 days, will get the dinner for two.



nadm

 

[Arthur Rudnick]

In order to determine if any insurance product is "sustainable" or "financially viable" we need to know:

1) What benefits will be paid to each beneficiary and
2) The amount of the premium each participant must pay.

You might also add #3....................
Who is in charge of the development & administration of the product?

The answer of course is the federal government. And, if history is a guide, the program is not only unsustainable but certain to be filled with waste & fraud.

Social Security was supposed to be sustainable wasn't it?
Medicare was supposed to be sustainable wasn't it?
Medicaid was supposed to be sustainable wasn't it?
The Postal Service was supposed to be sustainable wasn't it?

There isn't one actuary on the planet, including actuaries that work for the present administration that has said CLASS is
financially viable.

Even the *** Sebelius admits it's unsustainable, and she's the one in charge.

YOU can't determine whether CLASS is financially viable but everyone else can.

Wonder why that is?

You continue to carry on as to the merits of CLASS. The only way that this program will ever work, is for the government to make it mandatory for everyone.

And, don't be surprised if that's next up on the agenda.

 

[Mr_Ed]

In order to determine if any insurance product is "sustainable" or "financially viable" we need to know:

1) What benefits will be paid to each beneficiary and
2) The amount of the premium each participant must pay.

You might also add #3....................
Who is in charge of the development & administration of the product?

The answer of course is the federal government. And, if history is a guide, the program is not only unsustainable but certain to be filled with waste & fraud.

Social Security was supposed to be sustainable wasn't it?
Medicare was supposed to be sustainable wasn't it?
Medicaid was supposed to be sustainable wasn't it?
The Postal Service was supposed to be sustainable wasn't it?

There isn't one actuary on the planet, including actuaries that work for the present administration that has said CLASS is
financially viable.

Even the *** Sebelius admits it's unsustainable, and she's the one in charge.

YOU can't determine whether CLASS is financially viable but everyone else can.

Wonder why that is?

You continue to carry on as to the merits of CLASS. The only way that this program will ever work, is for the government to make it mandatory for everyone.

And, don't be surprised if that's next up on the agenda.

So you don't know how much it will pay in benefits and you don't know how much the premium will be, yet you know that it's unsustainable.

You don't know the value of "X". You don't know the value of "Y". But you are convinced you know the value of their product.


It could be easily sustainable, within the guidelines of the legislation with these benefits:

$25 Daily Benefit for those who need help with 2 or 3 ADL's (about 50% of claims)

$50 Daily Benefit for those who need help with 4 ADL's
(about 20% of claims)

$75 Daily Benefit for those who need help with 5 ADL's
(about 20% of claims)

$125 Daily Benefit for those who need help with 6 ADL's.
(about 10% of claims)


Average Daily Benefit is $50 per day (which is exactly what the legislation requires).

They could sell it as "up to $125 per day", which would make a lot more people sign up which would help avoid anti-selection.

And they could probably sell it for about $80 per month for a 50-year old.

It would suck compared to a traditional LTCi policy, but it would survive.

And it would "work actuarially" within the constraints of the legislation.

nadm

 

[Arthur Rudnick]

You're a genius!

Let's have every 80 year old grandmother & grandfather get into a pissing contest with some *** working for the federal government about whether they need help with 1,2,3,4,5 or 6 ADLs.

By the time they figure out how much in benefits are allowable, they'd be dead.

It's interesting that you can figure out how to make CLASS sustainable, but no one else can. The people in charge at HHS say the program as constructed in not only unsustainable but also actuarilally unsound and due to explode within 10 years.

What is it that YOU see that minds a lot smarter than you don't?

Talking to you is like talking to a wall................

I'm out of here on this CLASS conversation. You can talk to yourself, because you are the only one who believes what you're saying.

CLASS IS OUT!
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Oh, One Final Thought....

[FONT=Times New Roman","serif]According to HHS Spokesperson Keith Maley the CLASS Act does not allow HHS to implement the program if it's not financially solvent. Maley says if HHS can't figure out a way to make the CLASS Act work financially it won'tmove forward with implementation.[/FONT]

[FONT=Times New Roman","serif]____________________________________________________________________________[/FONT]

The Washington Times By Jeffrey Birnbaum

[FONT=Times New Roman","serif]The health legislation signed into law by President Obama includes a provision called the CLASS Act, which provides long-term care at home. Few people know about it, but experts agree that it could well explode the federal budget deficit down the road.[/FONT]

The problem: The insurance plan, as currently constructed, can’t possibly pay for itself over the long run and will blow ahole in the federal budget unless lawmakers somehow become more diligent than we generally expect them to be.

Democratic, North Dakota Sen. Kent Conrad, chairman ofthe Senate Budget Committee, has called the measure a Ponzi scheme. He andother moderate Democrats wrote aletter last year expressing their concerns about the long-term fiscal soundness of the proposal.

The arrangement would work just fine for a while. Infact, initially, the program will take in tens of billions of dollars that willdefray the overall cost of health reform. The CLASS Act is one reason reform looks so fiscally responsible in the short and medium terms.

But eventually the worm will turn. Bythe end of the decade, government and private estimates point out, the CLASS Act will take in billions of dollars less than the monthly premiums can coverand could, in fact, be insolvent by 2021.

_____________________________________________________________________________________

On February 16, 2011 HHS Secretary Kathleen Sebelius testified before the Senate Finance Committee on a wide range of subjects related to Obamacare.

The most telling exchange took place between Sen. John Thune (R., S.D.) and Sebelius, in which Sebelius admitted that the CLASS Act, Obamacare’s new entitlement for elderly long-term care, is “totally unsustainable.”

 

[scagnt83]

Dont you know that the government is so stupid that they dont even know what a great bill it is that they passed!!