The Patient Protection and Affordable Care Act launches the first national, voluntary funded program called the Community Living Assistance Services and Supports program or CLASS Act. This was signed by President Barack Obama in March 2010 and took effect on the first of January 2011. However, some of the features of the plan should be amended and executed by the Secretary of Health and Human Services on or before October 1, 2012. Therefore, Americans will be able to join sometime in 2013.

Who are Eligible?

American employees and employers may voluntarily join the program. Employees may decide to "opt out" should they wish to apply for private LTC insurance.

The employer will sign you up to the program and have your paycheck deducted automatically. The qualifications are:

• Actively at work

• 18 years of age and above

• Not residing at the time of application in any long term care facilities

There is no medical underwriting involved; thus, it is required by law not to decline the coverage for anyone with pre-existing condition or chronic health ailment.

How much would it cost?

The exact monthly payment has not been revealed since the HHS Secretary has to determine the financially sound amount for the program.

After the failure and budget deficit caused by Medicare, the government decided to reestablish the long term care CLASS Act into a publicly funded program that will not tap any of the taxpayer’s pool or any of the resources to support the program. Since it is publicly funded, people speculate the premiums will be high to commensurate the costs for long term care services.

What are the benefits each member would receive?

Members are required to pay the premiums for five years before they may collect the cash benefits and the following must apply:

• You must have impairment or disability that would last for 90 days or beyond

• You need help at least two or more Activities of Daily Living or ADLs

• You have cognitive disorder such as Alzheimer’s, Pick’s disease, Binswanger’s disease, to name a few

There’s a surrounding misconception that CLASS Act benefits will pay everything for long term care. In reality, these benefits only lessen the burden of paying long term care through out-of-pocket. This can be paid for LTC services that are not offered under private health and life insurance, and Medicaid or Medicare as well.

The exact amount for the benefits has not been revealed by the HHS secretary. However, the cash benefits will depend on your health condition and disability, but the expected amount would run from minimum of $50 s day up to the maximum amount of $75, which could accumulate to $27,000 annually. The more services you need for your health or impairment means greater cash benefits. There’s no cut off to receiving CLASS benefits as long as you have qualifying level of disability.

As long term care costs are getting much expensive each year, you should value the importance of long term care planning today before you get trapped in debt and become impoverished. CLASS Act may offset the problem but does not necessarily cover everything for long term care.