In March of 2010 we were told that the CBO estimated the CLASS (long term care) provision of Obamacare would reduce the deficit by $70 billion. Today the Obama administration announced that CLASS is being eliminated because it’s too expensive, the Wall Street Journal reported.
HHS Secretary Kathleen Sebelius told Congress in a letter that she doesn’t see a viable path forward at this time. By law, implementation of the program was contingent on the HHS secretary ensuring the program was fiscally sustainable and doesn’t use taxpayer funding to pay out benefits.
Republicans, and some Democrats, have raised alarms that it would grow into a drain on the federal budget. The nonpartisan Congressional Budget Office found the long-term care program would generate tens of billions of dollars between 2012 and 2021, when it was taking in premiums and paying out little in claims. But a top federal actuary warned that, in subsequent years, the program would end up paying out more than it took in.
The program, a top priority of the late Sen. Edward Kennedy (D., Mass.), is the first big part of the health overhaul to get killed, and is expected to embolden critics of the law.
Is this an admission that they used shady accounting when selling Obamacare?
CLASS dismissed!
More at Reason and The Right Sphere.
Update: Scared Monkeys linked, and has much more on the subject.
Update 2: American Power linked – thanks!
Update 3: Also linked at Bunkerville – thank you!
“…and is expected to embolden critics of the law.”
We can only hope.
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[...] title of the Obama admission that Obamacare is unfordable and unsustainable, from the Lonely Conservative … CLASS DISMISSED!!! But wait, I thought the CBO stated that CLASS would account for $70 [...]
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[...] Lonely Conservative No comments yetFriday the Department of Health and Human Services announced the CLASS Act portion of Obamacare was a no-go. Today, White House officials suggest that President Obama would veto any bill repealing the [...]
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[...] 18, 2011 — bunkerville Friday the Department of Health and Human Services announced the CLASS Act portion of Obamacare was a no-go. You see, there wasn’t anyway to fund it. I know this action got caught up in the Friday news [...]
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