TWG Capital (TWGC)
The CLASS Act is a hot topic in long term care
By TWG Capital
When recapping news articles and discussions concerning the LTCI industry, insurance agents say the CLASS Act remains top of mind.
Mickey Batsell, a Texas long term care professional, takes an optimistic approach regarding the new legislation in congress that will affect LTCI agents.
"I think the CLASS Act will give independent agents another opportunity to serve the public," says Batsell. "If the CLASS Act passes, it could generate additional confusion regarding the public option versus a private plan, but it will not put agents out of business. Agents specializing in long term care are better equipped to educate the public on their perception of each plan. The biggest challenge has been letting people know Medicare doesn't cover long term care expenses."
What is the CLASS Act?
According to the Kaiser Family Foundation, a leader in health policy and communications, the Community Living Assistance Services and Supports (CLASS) Act is a national, voluntary insurance program to facilitate community living services and supports. The program will compete against private insurance by providing individuals with a cash benefit to purchase non-medical services and supports necessary to maintain community residence.
Some of the program highlights include:
Financing is obtained through monthly premiums paid by voluntary payroll deductions.
Even if the program is included in legislation, it could take up to eight years before agents are directly impacted by it. If the Act is passed, the Health and Human Services Director will have two years to come up with rules and regulations and as Mickey stated earlier, an individual has to be under the plan for five years before making a claim. This buys agents plenty of time to get up-to-speed with the details and language of the proposed program.
How to prepare for the CLASS Act
As for now, the best way agents can prepare for the program is to be aware of its status and pay attention to any updates or changes that may occur. Whether or not the Act is passed, agents will need to be knowledgeable about the details in order to answer questions and explain the benefits and drawbacks to their client base.
Michael Wilson, a Delaware MetLife agent, says that it's important to take extra time and sit down with prospects and clients in order to educate them about their insurance options.
"Clients aren't making moves right now because they aren't confident in the marketplace or aware of the pros and cons of all their options," says Wilson. "As industry professionals, we need to listen to their objections and provide them with the tools and resources they may need in order to overcome their fears and make confident decisions about their future."
Agents and carriers have been educating the marketplace for years about long term care through awareness campaigns, seminars, print materials and word-of mouth. However, the social media world has proven a big success for those willing to push up their sleeves and dig in!
CLASS Act educational resources:
OpenCongress.org
CLASS Act Fact Sheet
Kaiser Family Foundation CLASS Act Issue Brief
*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.
Mickey Batsell, a Texas long term care professional, takes an optimistic approach regarding the new legislation in congress that will affect LTCI agents.
"I think the CLASS Act will give independent agents another opportunity to serve the public," says Batsell. "If the CLASS Act passes, it could generate additional confusion regarding the public option versus a private plan, but it will not put agents out of business. Agents specializing in long term care are better equipped to educate the public on their perception of each plan. The biggest challenge has been letting people know Medicare doesn't cover long term care expenses."
What is the CLASS Act?
According to the Kaiser Family Foundation, a leader in health policy and communications, the Community Living Assistance Services and Supports (CLASS) Act is a national, voluntary insurance program to facilitate community living services and supports. The program will compete against private insurance by providing individuals with a cash benefit to purchase non-medical services and supports necessary to maintain community residence.
Some of the program highlights include:
Financing is obtained through monthly premiums paid by voluntary payroll deductions.
- Working adults will be automatically enrolled in the program, unless they choose to opt-out.
- To qualify for benefits individuals must be 18 years old.
- Individuals must contribute monthly premiums to the program for at least five years before receiving cash benefits.
Even if the program is included in legislation, it could take up to eight years before agents are directly impacted by it. If the Act is passed, the Health and Human Services Director will have two years to come up with rules and regulations and as Mickey stated earlier, an individual has to be under the plan for five years before making a claim. This buys agents plenty of time to get up-to-speed with the details and language of the proposed program.
How to prepare for the CLASS Act
As for now, the best way agents can prepare for the program is to be aware of its status and pay attention to any updates or changes that may occur. Whether or not the Act is passed, agents will need to be knowledgeable about the details in order to answer questions and explain the benefits and drawbacks to their client base.
Michael Wilson, a Delaware MetLife agent, says that it's important to take extra time and sit down with prospects and clients in order to educate them about their insurance options.
"Clients aren't making moves right now because they aren't confident in the marketplace or aware of the pros and cons of all their options," says Wilson. "As industry professionals, we need to listen to their objections and provide them with the tools and resources they may need in order to overcome their fears and make confident decisions about their future."
Agents and carriers have been educating the marketplace for years about long term care through awareness campaigns, seminars, print materials and word-of mouth. However, the social media world has proven a big success for those willing to push up their sleeves and dig in!
CLASS Act educational resources:
OpenCongress.org
CLASS Act Fact Sheet
Kaiser Family Foundation CLASS Act Issue Brief
*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.
