Client asks about The CLASS ACT Long Term Care plan

Client:

I know we have had this conversation before but, what are the provisions in the health care bill for long term care?  Do I need LTC coverage if the government is going to take care of me (sarcasm)?

LTC Tree:
Hi, your sarcasm is well placed. 

Hidden in the health care bill was a provision know as the CLASS ACT Long Term Care government plan.  The only reason it was in there was to double count the premiums taken in on the Long Term Care side and put them towards the health care bill's huge cost.  The Class Act plan has a 5 year waiting period before anyone could use it, but they have to start paying premiums day 1.  The government simply took those premiums and put them towards the health care bill to get the CBO to give it a passing grade.  What happens the next five years?  It's literally a Ponzi scheme. 

Furthermore, if one were to take it out, it's an expensive and poor plan because it will just pay $50-75 per day, and the only people who will even think of buying this are the unhealthy people because they can't qualify for a private plan.  This adverse selection of just higher risk folks in the plan will lead to huge rate increases down the road.  Needless to say you won't want to touch this radioactive plan.