Repeal of CLASS Act Would Wipe Out $83 Billion in Budget Savings, Says Eldercare Workforce Alliance
July 22, 2011
Strongly Urges Congress and Administration
To Oppose Repeal in Any Budget Reduction Deal
Washington, D.C. – Citing a Congressional Budget Office estimate that the Community Living Assistance Services and Supports (CLASS) program would reduce the federal deficit by $83 billion over 10 years, the Eldercare Workforce Alliance (EWA) today strongly urged Congress and the Administration to oppose its repeal as part of any agreement reached on reducing the budget deficit.
“Congress and the Administration must resist the temptation to balance the budget through harmful cuts to long-term care programs that provide vital care to older adults,” noted the EWA letter sent to Congressional leaders today, further urging Congress to “support budget solutions that do not harm our frailest and most vulnerable citizens.”
Medicaid is the principal payer for long-term services and covers more than 60 percent of such supports.
“The CLASS program could reduce reliance on Medicaid, positively impacting federal and state budgets,” noted the letter send on behalf of the Alliance , a coalition of 28 national organizations committed to person-centered team care for older adults. “Therefore,” the EWA letter concluded, “eliminating CLASS would be counterproductive in efforts to reduce the federal budget.”
The CLASS program was established as an alternative for financing long-term services and supports. By establishing a new voluntary national insurance program, EWA pointed out, “the CLASS program will enable older people who have or who may develop functional impairment to remain independent and residing in their homes and communities.”
Long-term services and supports currently are financed mostly by Medicaid, out-of-pocket spending by individuals, and informal caregiving by family members and friends.
A study recently released by the AARP Public Policy Institute revealed that unpaid care by family and friends, worth approximately $450 billion annually, represents more than twice the value of formal paid long-services and supports.
The AARP study, “Valuing the Invaluable: The Growing Contributions and Costs of Family Caregiving,” also found that caregivers to persons 50 or older reported spending an average of $5,531 out-of-pocket in 2007, with long-distance caregivers averaging $8,728 annually. “This problem will become severe as baby boomers age and are expected to have fewer family caregivers available to support them,” the EWA said.
