Fiscal Cliff Deal’s Effect on Long-Term Care

Congress has averted the “fiscal
cliff” for now, but there was one law that fell over the cliff anyway. The Community
Living Assistance Services and Supports (CLASS) Act, which was intended to deal
with the issue of long-term care for seniors, has been repealed. What did
politicians do to address this issue? Not surprisingly, a “commission” was
formed.

The CLASS Act and the new
commission formed to study the delivery (and financing) of long-term care was
the subject of a recent Forbes
article titled “Fiscal Cliff Deal Repeals CLASS Act, Creates
Long-Term Care Commission.”
As summarized in the title of this Forbes
article, The American Taxpayer Relief Act or
ATRA – does two things in the field of long-term care: first, it officially
ends the CLASS Act, and second, it forms a new bipartisan commission to
“tackle” the matter.

Is it a good trade-off? For
starters, the CLASS Act had already been abandoned by the administration and
Congress alike. On the other hand, this new commission might not find an
alternative new solution. As the Forbes
article notes, the commission is a “political commission” rather than a panel
of subject matter experts. The commission has been given a window of six months
to conduct its business.

The crisis of long-term care in
America is still an important issue, and it’s hard to tell what the future
holds for this matter. Now is the time for individuals to take responsibility for
their long-term care.  We suggest that you consult your trusted advisors to examine your options.