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CLASS Act not to be implemented. But...

Samhain

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I'm sure most have heard that the CLASS Act, which is a portion of the health insurance overhaul from last year, will not be implemented because HHS could not find a way to make it solvent. The portion of the bill that defined CLASS, which provides a long-term care insurance that would pay you cash when you are placed in a assisted living home, stated that it could only be enacted if HHS could show that it would be solvent for 75 years. HHS Secretary Sebelius could not, so it wont be implemented.

But the real story comes in the follow up. The CLASS Act was used to score the overall bill, and it accounted for a large portion of the 10-year budget savings the bill was to provide(86 billion of 210 billion). There is currently pending legislation to repeal the CLASS Act entirely, and as usual, the CBO was asked to score it.

Turns out, repealing the bill doesn't increase the budget deficit. How can it not increase the deficit, when it was scored to decrease it?

Breaking: CBO to Score Fiscal Impact of CLASS Repeal at Zero - Forbes

The savings didn't exist in reality, and never should have been included. I'm interested to see how much more of the bill can be shown to be phantom savings.
 
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