Diary

Government may raise long term care rates if needed?

Remember the brouhaha over Anthem Blue Cross in California raising rates 39 percent for some individuals? This news conveniently (think Goldman Sachs) came to light at the height of the Heath Care debate and conveniently (think financial reform bill) gave the President, Sen. Dianne Feinstein and Health and Human Services Secretary Kathleen Sebelius a nice neat little soap box to demand Blue Cross cancel their plans to for the increase on some people. Remember all that?

This is from today’s New York Times blog The Old Age answering the question of how much the Government’s new long term care insurance (CLASS Act) will cost those who opt in [emphasis mine]:

We’re all waiting for Ms. Sebelius and a federal advisory panel to tell us. In November, when the Congressional Budget Office analyzed Class, it assumed a $123 average monthly premium (less for young enrollees, more for older ones); it also assumed, conservatively, that only 5 to 6 percent of those eligible to participate actually would. If more people enroll — and Class is an opt-out program, so if your employer participates, you’re automatically included unless you decline — the premiums will be lower. With fewer people in the risk pool, premiums will go higher.

That’s right. Kathleen Sebelius could raise your rates…and without an ounce of shame I’ll bet.