Do you remember the Class Act? That was the piece of Obamacare that was to provide long term disability insurance to anyone who paid the premiums for the insurance.
The plan was that you could begin to participate in Class in 2017, but couldn’t collect disability until you had paid premiums for five years. Those premium payments kept Obamacare “deficit neutral” until 2021. But, in case you had forgotten, the CBO estimated that Class would go broke in 2025.
I can only assume that the administration finally read the CBO report.
Although the President had requested $120 million in the 2012 budget to fund “preparations’ for Class, the administration later told Congress that the money would not be needed.
officials at the Department of Health and Human Services on Thursday said they may not go forward with the program. ‘It is an open question whether the program will be implemented,’ the agency said.
This “disclosure” came on the heals of the firing of Bob Yee, the chief actuary for Class. According to Mr. Yee,
My understanding is they are slowing down the development…[t]hey’re taking a pause and reducing the amount of work being done.
This, of course, is welcome news.
Our country will go broke slightly later than currently planned.