The Community living assistance services and supports act also known as CLASS act is created under the federal law to provide a long term insurance to the employees. It was created as title VIII of Patient Protection and Affordable Care Act. It was made to provide an option of long term insurance allowing elderly and disabled to spend a middle class life being at their homes.
The barriers in implementation of this act were:
– opting out of the plan was voluntary. An employee could just check out from the plan when they wished to which effected the plan consistency.
– high premium amounts would be a necessity. For the long term home care facility the payout would have to be high. For that high amount of premiums would be set for payment in service which would force employees to opt out from it.
– it was not attractive for all employees- only the employees who felt they will be unwell in their old age and would require such insurance felt the necessity to take it. It wasnt being commonly accepted by all which made its implementation very impractical.
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