On March 23, 2010, President Barrack Obama signed into law the Health Care Reform bill known as the Patient Protection and Affordable Care Act, which includes the Community Living Assistance Services and Supports (CLASS) provisions. It aims to aid the American people to ease the burden of expensive health care insurance and provide them an alternative that secures their medical and non-medical needs in the future without stressing their budget and savings too much. This Long Term Care CLASS act is the latest in a series of measures the government has taken to promote and encourage people to plan and acquire Long Term Care insurance.

The CLASS act is a consumer-financed insurance pool being administered by the government, and is in fact the first government-run Long Term Care insurance program. CLASS act took effect on January 1, 2011 but other details and information have not yet been defined and will still be developed and worked on by the Department of Health and Human Services for two and a half years. As per their website, the program "will be available after October 2012." After this period, claims could start being paid by then.

This provision aspires to help and cover the Long Term Care needs of almost 32 million Americans who are still uninsured. It will benefit those who were rejected of a private insurance plan and those who belong below the poverty line. These people can obtain Long Term Care coverage with limited benefits leaving aside their current or past medical conditions. Although this provision was initiated and run by the government, the benefits of the CLASS act will be remunerated by the premiums acquired from voluntary participants, and not from the taxpayers, which was the concern of most people when the CLASS act was first proposed.

An individual who wishes to enroll must be employed, must be working for at least three years and must pay premiums for at least five years.

Employers have an option to pay a portion or percentage of the premium for their employees who will qualify but this is not compulsory. The most common and convenient way to pay the premiums is through salary deduction. The employers could collect the premium from the participants’ paychecks and pay them into the trust.

For those who are below the poverty line and working students, the premium would be $5 monthly. The prices and rates of the premiums for the others who are interested to apply have not yet been set but just like any other Long Term Care insurance policy, the younger age you acquire an LTC policy through CLASS act, the lower premium rate you will get.

The CLASS act also provides an everyday cash benefit amounting to at least $50 a day, but inflation may affect the rate change. This may apply to those who have cognitive impairments or to those who does not have the capacity to take care of themselves anymore.

CLASS act is one more option for the American people to plan and choose wisely regarding the Long Term Care insurance that they want to avail. This type of insurance may be expensive for some, but it will all be worth the hard work because it can guarantee you a more peaceful and comfortable life after your retirement.