Westmoreland: "CLASS Act Unsustainable, a Ponzi Scheme and Must Go"

WASHINGTON, D.C. – The House of Representatives has passed legislation to repeal the controversial Community Living Assistance Services and Supports (CLASS) Act. The CLASS Act is a long-term care program created in Title VIII of the Patient Protection and Affordable Care Act, more commonly known as ObamaCare. The program came under fire even before enactment of ObamaCare when it became clear by both Republicans and Democrats that it was unsustainable. The president’s own CMS Chief Actuary Rick Foster warned “this program would collapse in short order” and several Senate Democrats expressed their “grave concerns that the real effect of the provisions would be to create a new federal entitlement program with large, long-term spending increases that far exceed revenues.”

“I find it absurd that both Members of Congress from both sides of the aisle, high-ranking health care officials, and even staff within the White House were all aware of the flaws of this CLASS program prior to the health care bill passing, yet it remained in the final bill,” stated Westmoreland. “The CLASS program once again reminds us that we are still not fully aware of the negative ramifications of ObamaCare.”

After a review by the Department of Health and Human Services (HHS), the president’s administration admitted the CLASS program is fiscally unsustainable and they stopped all efforts to establish the program. In addition, it has often been referred to as a budget gimmick used by Congressional Democrats and the White House to mask the true cost of the health care law because it forces individuals to pay into the program for five years without paying out any benefits – meaning the first five years of the program show nothing but profit.

“Long-term health care reform is vital, but the federal government shelling out $80 billion for what Democrat Senator Kent Conrad, Chairman of the Senate Budget Committee, referred to as a ponzi scheme is absolutely not the answer,” stated Westmoreland. “Even the president’s own Secretary of HHS Kathleen Sebelius has stated that the CLASS Act is going to go bankrupt and that she does not see a ‘viable path forward for CLASS implementation.’ All of this makes it very clear that CLASS has got to go.”

Even though the repeal of the CLASS Act garnered bipartisan support in the House, and even though eleven Senate Democrats and Independent Senator Joe Lieberman voted in favor of a failed amendment to repeal the CLASS Act in 2009, Senate Majority Leader Harry Reid has not scheduled a vote on this legislation in the Senate. It is unclear whether he will do so at any time in the near future.