Title VIII. Community Living Assistance Services and Supports Act (CLASS Act)

Establishing a Voluntary, Self-Funding Long-Term Insurance Choice for American Families

The Act provides Americans with a new option to finance long-term services and care in the event of a disability.

It is a self-funded and voluntary long-term care insurance choice. Workers will pay in premiums in order to receive a daily cash benefit if they develop a disability. Need will be based on difficulty in performing basic activities such as bathing or dressing.  The benefit is flexible: it could be used for a range of community support services, from respite care to home care. 

No taxpayer funds will be used to pay benefits under this provision. The program will actually reduce Medicaid spending, as people are able to continue working and living in their homes and not enter nursing homes. Safeguards will be put in place to ensure its premiums are enough to cover its costs.