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Does the CLASS Act become effective on January 1, 2011?

When does the CLASS Act (Community Living Assistance Services and Supports Act) become effective?

There is a lot of confusion about when the CLASS Act becomes effective.  Many reputable sources have erroneously stated that the CLASS Act starts on January 1, 2011, including Kaiser Health News, The National Federation of Independent Business (NFIB), and even major news organizations.

The Department of Health and Human Services will only begin to hire actuaries and administrative personnel, in January 2011.  They will start to develop the details of the CLASS Act program.  However, the Dept. of HHS has until October 2012 to decide on:

  • how enrollment will be handle,
  • how the benefits will be tiered (depending on one’s level of disability), and
  • how much it will cost to participate in the program.

Once the details are released (sometime in 2012), there will be a 90-day period for “public comment”.  Then enrollment will begin (probably in the first quarter of 2013.)

Since the CLASS Act requires that premiums be paid for 5 years before any benefits can be received, the earliest any claims can be made by enrollees will be somewhere around 2018.

To learn more about the CLASS Act, click any of the following links:

How is the CLASS Act better than traditional long-term care insurance

Why are the CLASS Act premiums projected to be so much higher than traditional long-term care insurance

The 3 big disadvantages to the CLASS Act

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About Scott A. Olson

Scott A. Olson, is the author of “The Guidebook for Making Long-Term Care Insurance Easier.” He is a licensed insurance agent and has specialized in long-term care insurance since 1995. He is licensed to sell long-term care insurance in over 40 states. Scott was born and raised in New Jersey and attended Rutgers University. Scott was a caregiver for a close relative for two years. That personal experience has made him acutely aware of how to help his clients design and choose a long-term care policy that will benefit them when they need it the most. Scott and his wife Carolyn live in Redlands, California. Scott and Carolyn have four sons.

One comment on “Does the CLASS Act become effective on January 1, 2011?

  1. [...] I ran across the blog of a gentleman from a state other than Texas.  Scott A. Olson’s  blog, “Does the CLASS Act Become Effective on January 1, 2011,” is a must read for anyone over the age of 60 who thinks that the governments new program will [...]

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