Posted by Nickelle Leist on Wed, Mar 24, 2010 @ 07:57 AM

Enrollees will be offered coverage through their employers and will be automatically covered unless they opt out. They can opt back in at a later time. Self-employed people or those whose employers do not offer the benefit will also be able to join the CLASS program through a government payment mechanism.

How soon will the CLASS provisions take effect?
Now that the bill has been signed into law by President Obama, it will go to the Department of Health and Human Services, where the terms of the program will be worked through. From there it will be two years before the program goes into effect and another five years from that point before anyone is eligible for benefits.

What if a client is now considering the government plan rather than LTC insurance?
It will be at least two years before the CLASS Act is operational and another five years from that time before any benefits can be paid. Since the government plan is highly limited, we encourage you to remind your prospects that delaying the purchase of an LTC insurance policy can have an effect on the cost of their policy and possibly their insurability. Also remind your clients about some of the advantages of a purchasing a private LTC insurance policy today, such as:

*  The purchase of an individual LTC insurance policy does not require that the individual be employed.
*  LTC insurance offers a broad range of benefits, and is better suited to address the high cost of care.
*  LTC insurance does not have a minimum number of years an individual must pay premiums before benefits are payable; the coverage will begin paying benefits once the benefits trigger and waiting periods have been met.
*  Any unused LTC insurance benefits are carried over from year to year.
*  The policy provides access to care coordination services, quality providers, and provider discounts.

Does a policyholder still need his/her LTC insurance policy?

Yes, we recommend that all private LTCI policyholders retain their private LTC insurance policies due to the highly limited nature of the long-term care benefits that will be offered under CLASS, as well as what could potentially be very high premiums for CLASS due to adverse selection.

What is John Hancock’s position on the passing of the CLASS provisions?
We believe that the CLASS provisions do not negate the need for private LTC insurance coverage in any way. In addition, we are hopeful that the program will play a significant role in raising consumer awareness about the many issues surrounding long-term care and the need to be prepared for a long-term care event.