The Affordable Care Act created the CLASS Program, which is national, voluntary insurance that will be available after October 2012 to help you pay for services and support in a long-term care situation. Employees of companies that choose to participate will be automatically enrolled in the CLASS Act and will pay with payroll deductions unless they opt out. Other workers and the self-employed will be able to enroll on their own. Retirees are not eligible.
After paying premiums for five years (and you must have worked for three of those five years), you're eligible for a cash benefit of about $50 per day if you're unable to perform activities of daily living, such as walking, bathing or dressing, or if you are cognitively impaired.
That benefit falls far short of covering the actual cost of long-term care -- which currently averages over $200 per day in a nursing home. The premiums have not been set, but estimates have been given from $125 to $160 per month. For those below the poverty line, the premium will be $5 per month.
If you can qualify for long-term care insurance in the private market, you will receive a far greater benefit for the estimated premium. You also will not have to wait five years to receive benefits. If you will be rejected because of your health, the CLASS Act could be your only option.
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