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Congress's Long-Term Care Bomb
Wall Street Journal ^ | 12/13/2009 | Scott Harrington

Posted on 12/13/2009 6:47:24 PM PST by markomalley

The public is growing wary of the cost of ObamaCare. Yet there is one budget-busting provision that hasn't received the attention it deserves: a new long-term care entitlement.

Known as the Community Living Assistance Services and Supports Act, or Class Act, this entitlement is in both the House and Senate bills and was a top priority of the late Sen. Ted Kennedy. It would provide at least $50 a day toward home or institutional care, equipment and supplies, or home improvements to assist the daily living of those who are enrolled. It is also a significant part of the reason that Democrats claim that ObamaCare is fiscally responsible, but this turns out to be a short-term budget ruse.

The Congressional Budget Office (CBO) projects that the House and Senate health-care bills will reduce federal deficits over the next 10 years by $138 billion and $130 billion, respectively. The lion's share of the savings, $101.6 billion and $72.5 billion, would be realized by the long-term care program.

How can a new entitlement reduce deficits? With budget accounting, the program will pile up more revenues than its costs. But only in the short run. In the long run, it will blow a hole in the federal budget.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Front Page News; Government
KEYWORDS: longtermcare; obamacare

1 posted on 12/13/2009 6:47:24 PM PST by markomalley
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To: markomalley
How can a new entitlement reduce deficits?

They don't call him the magic negro for nothing.

2 posted on 12/13/2009 6:52:04 PM PST by Graybeard58 ("Get lost, Mitt. You're the Eddie Haskell of the Republican party." (Finny))
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To: markomalley

$50 per day is NADA towards the cost of long term care. Assisted Living runs a few thousand a week. At least, in a place that isn’t serving dog food and smelling like urine, and knocking the “inmates” out at 5PM...........


3 posted on 12/13/2009 6:53:48 PM PST by phoenix07
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To: phoenix07

You’re absolutely right about the $50 per day. That’s helpful for at-home care, but doesn’t begin to cover the cost of institutional care. When one of our loved ones needed assisted living and then nursing unit care, the daily costs were running over $150/day for basic care - and that was in 2005. In addition to his basic institutional care, he needed quite a few expensive medications. We also arranged for a private duty nurse during his waking hours, because he was at risk of falling out of his chair, and by state law, couldn’t be restrained. By the end, his combined institutional, nursing, and pharmacy costs were running in excess of $10,000 per month. Fortunately, he could afford it, but it was an eye-opening experience for us.


4 posted on 12/13/2009 7:07:54 PM PST by Think free or die (The problem with socialism is that you eventually run out of other people's money - M.Thatcher)
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To: phoenix07

I used to do the data processing for the IL federal waiver that was meant to provide alternatives to nursing care. As you mentioned LTC is a significant cost and anyone who lives long enough in a long-term care facility eventually exhausts their private coverage and joins the MEDICAID population. While in-home care will provide substantial savings, not everyone can do it either due to medical necessity or the lack of in-home caregivers. I’m betting the “savings” come from diverting everyone! Also, here in good ol’ IL, the bulk of the nursing homes are owned by legislators or members of their family. They are not going to stand idly by and watch their cash cow get slaughtered.


5 posted on 12/13/2009 7:11:54 PM PST by RonInNaples
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To: markomalley

Americas enemies- the dimocratic party and islam. Get rid of both of these you would have prosperity and world peace.


6 posted on 12/13/2009 7:12:47 PM PST by G-Man 1
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To: Graybeard58

BWAHAHAHAHAHAHAHA!!!


7 posted on 12/13/2009 7:17:25 PM PST by NotSoModerate
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To: markomalley; Think free or die

As a long term care insurance specialist I can tell you that this provision is horrible. Not only is the coverage limited to $50 per day...But there is no inflation protection.

In 20 years, $50 will be worth about $12 today.

FRiends, If you have any questions about Long Term Care Insurance...how to get a good plan, or how to find a reputable specialist in your area. Just shoot me a reply.

Proudpapa


8 posted on 12/13/2009 7:22:46 PM PST by proudpapa (Obama - Worst One Ever!)
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To: AdmSmith; Berosus; bigheadfred; Convert from ECUSA; dervish; Ernest_at_the_Beach; Fred Nerks; ...
Known as the Community Living Assistance Services and Supports Act, or Class Act... would provide at least $50 a day toward home or institutional care, equipment and supplies, or home improvements to assist the daily living of those who are enrolled.
Thanks markomalley. We'll be seeing LOTS of stuff like this, along with millions of illegals naturalized carte blanche, because the Baby Boom starts to turn 65 in 2011.
9 posted on 12/13/2009 8:13:22 PM PST by SunkenCiv (My Sunday Feeling is that Nothing is easy. Goes for the rest of the week too.)
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To: proudpapa
Very important point about the inflation coverage. Our loved one bought his policy in about 1995, and didn't get the inflation rider. By the time we applied for care under his policy it was 10 years later, and the $100 per day cap didn't come close to covering his costs.

After seeing the costs of long-term care, my husband and I found ourselves a good insurance policy, and we made sure it contained an inflation rider.

10 posted on 12/13/2009 8:19:54 PM PST by Think free or die (The problem with socialism is that you eventually run out of other people's money - M.Thatcher)
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To: Think free or die
You’re absolutely right about the $50 per day.

But once a health-related entitlement is created, it is almost certain to grow.

11 posted on 12/13/2009 8:35:10 PM PST by ding_dong_daddy_from_dumas (Joe Wilson said "You lie!" in a room full of 500 politicians. Who was he talking about?)
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To: ding_dong_daddy_from_dumas

Sounds like my wife’s reasoning for buy something on sale.


12 posted on 12/13/2009 10:18:24 PM PST by gibtx2 (End Tenure)
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To: gibtx2
Sounds like my wife’s reasoning for buy something on sale.

Sounds like a reason not to buy it. The payments get much bigger in the future.

13 posted on 12/13/2009 11:46:41 PM PST by ding_dong_daddy_from_dumas (Joe Wilson said "You lie!" in a room full of 500 politicians. Who was he talking about?)
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