Posted by: Cathy Arnst on July 07
A key Senate health care reform committee declared with much fanfare last week that it was able to come up with a bill that would only cost the nation $611 billion over ten years. To get to that relatively low estimate, however, the Senators resorted to a lot of financial sleight-of-hand, such as dumping much of the cost of covering the uninsured on the states, through the Medicaid program. But today, on a key provision for covering long term care, the legislators gave a nod to reality and agreed to consider the full cost of the program.
At issue is the CLASS Act, short for Community Living Assistance Services and Supports Act, sponsored by Sen. Ted Kennedy (D-MA) as part of the bill being prepared by the Senate’s Health, Education Labor and Pensions (HELP) committee. Aimed at the two-thirds of senior citizens who will end up needing long term care, the voluntary plan would pay up to $50 a day, depending on need, for in-home or nursing home care. For that, enrollees would pay a top premium of $65 a month, less if they are younger. Sounds like a good deal, and it has broad bipartisan appeal—in principle. The problem: How do you pay for it?
The Congressional Budget Office estimated that, with a $65 premium, CLASS would quickly drop into the red after 10 years, as more and more baby boomers start drawing down benefits. The bill deals with this certainty by authorizing the Secretary of Health and Human Services to raise premiums, cut benefits, or limit enrollees at that point. . This smacked of “bait and switch” to Sen. Judd Gregg (R-NH), who will retire from the Senate next year. “We as a political entity don’t have the courage” to start the program on a sound fiscal footing, he charged. “Why wouldn’t we start out in the beginning telling the people the honest cost?”
Sen. Tom Coburn (R-OK), was even harsher. “I have never been at a markup for a bill that has such lack of integrity,” he said at today’s hearing. “There is a lack of honesty here.” Coburn doesn’t have much faith in the Senate to set things right, either. He claimed that the first time the HHS secretary tries to change the terms of the program “we will pass a law that says ‘no you can’t’ because of political pressure.”
After extended debate, Sen. Chris Dodd (D-CT) agreed that the CBO should estimate the cost of CLASS based on a 75 year projection and not a 20 year, as Gregg proposed, and the premiums would be adjusted accordingly. Gregg concluded the debate by commenting that if the program can remain solvent, it is laudatory, and the Republicans on the HELP committee said they would support the act if it is fiscally honest.
For more on the cost of long term care, read the Kaiser HealthNews column, National Long-Term Care Insurance: How Much Would It Cost? by Howard Gleckman, a senior research associate at the Urban Institute and former BusinessWeek correspondent.
$50 per day will cover 3 hours of care at todays prices for aids. What a waste of money!! By the time our ageing population needs long term care it will pay for 2 hours. I would rather pay $2000 per year to All State or some other insurance company for Long Term Care and get over $5,000 per month. Just went thru it with my Mom. They paid for 3/4 of full time aids. Senators do some homework for a change
The proposed healthcare package will in all likelihood lower overall healthcare costs. Its unforgivable that Canada has a better system of insurance than we do, and that we have 45 million uninsured.
The bottom line is, their numbers differ from ours because they're highballing prices trying to keep it from passing. Protect the wealthy and eat the poor, its the Republican way!
This healthcare package is going to bankrupt this country. I do not want some Washington legislator making any decisions for my care. When are people going to be responsible for themselves on not depend on government to solve their problems. We know they can't run anything correctly and everything they touch turns out to be a disaster.
If Canada's system is so great, why do they now allow private insurers to compete up there? Also, why do so many Canadians come down here for their care?
Say what you will, the fact that they come down here can not be justified unless you admit that our system is superior.
Get government completely out of healthcare and let the market decide.
I agree 100% that our health care is in shambles. I do not agree that this is the way to fix it. We have programs in place now that the government can't manage and that many people can't find a doctor to take the insurance because it pays so poorly and requires a lot of timewasting red tape that doesn't improve patient care and frankly doctors don't have time to and are not willing to deal with for the low reimbursement. I am lucky I have good insurance through my husbands work and I would hate to not have the coverage but the answer is not to hurry up and throw a million more people into a system that is already severely broken and try to hold it together with bandaids. Our government already has several failed health care plans ie Medicare, Medicaid and Medicare Part D until someone figures out how to properly manage or replace these don't add another failure.
If we have not learned anything else we should know that if the government says it will cost $1.00 then we should multiply that by 5. Just look at the efficiency of the welfare and Medicare programs. Also, what if this recession goes on longer than expected? How then will these programs be paid for? Even taxation of the wealthy has its limits. Perhaps limitations should be set on what nationalized medicine will cover to eliminate frivolous trips to the emergency room and unneeded testing that now occurs with Medicaid. Also, many employers will not hire until the cloud of what medical insurance will cost them is removed. And why does the president want the money approved in a budget before there is an actual program? Once the money is approved it will be easier to put a mediocre plan through
as Washington loves to spend money.
I keep hearing a lot of people comparing our healthcare system to the Canadian system. Canada is definitely not in the top ten country healthcare systems rated by WHO, World Health Organization. Of course they're rated higher than us. But, France is rated number one and that's the healthcare system we should copy. I suggest we bring in advisors from France to shiow us how they did it. Also, I suggest watching Michael Moore's film on healthcare, one disgruntled healthcare executive said he was right on.
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