NTU urges all Representatives to vote “YES” on H.R. 1173, the “Fiscal Responsibility and Retirement Security Act of 2011.” Introduced by Rep. Gingrey (R-GA), this bill would repeal the Community Living Assistance Services and Supports (CLASS) Act to prevent the actuarially unsound program from being revived through judicial review.
From its inception it was clear the CLASS Act was an unsustainable entitlement program aimed at artificially improving the Patient Protection and Affordable Care Act’s (PPACA’s) fiscal impact. As written the CLASS Act’s ban on medical underwriting would lead to a cycle of adverse selection and higher premium costs, in turn leaving it uncompetitive with the private market. Given its flaws, Health and Human Services Secretary (HHS) Kathleen Sebelius was forced to admit last October that she could not “see a viable path forward for CLASS implementation at this time,” and therefore had to suspend the program. Nor could HHS’s own actuaries immediately identify a substitute for CLASS that she could “certify as both actuarially sound for the next 75 years and consistent with statutory requirements.”
Nevertheless, according to the Congressional Research Service, failure to comply with PPACA’s statutory mandate to designate an alternative assisted-living benefit plan by October, 1 2012, could force HHS to either revive the CLASS Act or face legal action. Passage of H.R. 1173 would avert this unnecessary complication while ensuring that taxpayers aren’t forced to pick up the tab.
Roll call votes on H.R. 1173 will be significantly weighted in our annual Rating of Congress and a “YES” vote will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Federal Government Affairs Manager Brandon Greife at (703) 683-5700