Madam Chair, I yield 1 minute to the gentleman from New Jersey (Mr. Lance), a very valued member of the Subcommittee on Health. Madam Chair, I just want to remind everyone that under the CLASS Act there's not one person in the United…
Madam Chair, I yield 1 minute to the gentleman from New Jersey (Mr. Lance), a very valued member of the Subcommittee on Health.
Madam Chair, I just want to remind everyone that under the CLASS Act there's not one person in the United States who would receive long-term care benefits under that act because it doesn't work.
At this time I yield 2 minutes to the gentleman from West Virginia (Mr. McKinley).
Madam Chair, I yield myself such time as I may consume.
Madam Chair, I'd like to speak to H.R. 1173, the Fiscal Responsibility and Retirement Security Act of 2011, which repeals the CLASS program which was rushed into law in the President's health reform bill.
Last February, HHS Secretary Kathleen Sebelius publicly admitted that the more than $80 billion CLASS Act was ``totally unsustainable.'' But it was not until 8 months later, on October 14, that the Department of Health and Human Services announced it was not moving forward with the implementation of the CLASS program ``at this time.''
On October 26, 2011, Assistant Secretary Kathy Greenlee testified before our subcommittee that the Department had spent $5 million in 2010 and 2011 trying to implement the program. The Secretary's conclusion that the CLASS program could not meet the law's 75-year solvency requirement and was not sustainable was not a surprise to anyone who had been following the issue. Even before its inclusion in the President's health care law, PPACA, in March of 2010, we were warned by the administration's own actuary, the American Academy of Actuaries; Members of Congress from both parties; and outside experts that the program would not be fiscally sustainable. On July 9, 2009, approximately 8 months before PPACA was signed into law, CMS's own actuary, Richard Foster, wrote ``36 years of actuarial experience lead me to believe that this program would collapse in short order and require significant Federal subsidies to continue.''
I support the intent behind the CLASS program to help Americans purchase long-term care policies that most of us will end up needing at some point, but only about 9 million Americans actually purchase. Long- term care costs are frighteningly high, and many Americans face bankruptcy or ending up on Medicaid, or both, in order to get the care they need.
But while the goals of the program were worthy, good intentions do not make up for fundamentally flawed, actuarially unsound policies designed to show the illusion of savings. The President has left us with a budget hole of more than $80 billion. The irresponsible nature of the CLASS program's inclusion in the health care law is just a sample of the budget gimmicks used to pass the health care law in the dark of the night nearly 2 years ago. The President will have to explain why, years later, the taxpayers are left with a failed program that will cost this Nation at least $80 billion. That is more than 150 Solyndra scandals.
Shelving this failed program is not enough. As long as it is on the books, it will continue to create substantial uncertainty in the private sector about what the government's role in long-term care insurance will be. Let's repeal the CLASS program, not try to tinker around the edges of a fundamentally flawed model, and take up real solutions to this problem instead.
I urge my colleagues to support H.R. 1173, to repeal the failed CLASS program so that we can move forward with reforms that work.
And with that, I reserve the balance of my time.
Madam Chair, I yield 1 minute to the gentleman from Illinois (Mr. Lipinski).
Madam Chair, I yield 1 minute to the gentleman from Kentucky (Mr. Guthrie).
I reserve the balance of my time.
It is unconscionable to promise something to people when you know it won't be there.
Your own administration admits the CLASS Act doesn't work. Zero people will be enrolled in the CLASS Act. They have a program that does not work, a program they know that does not work. That is building a false sense of security in people instead of working on the real policy.
I yield 2 minutes at this time to the gentleman from Texas (Mr. Hensarling), our conference chair.
I continue to reserve the balance of my time.
Madam Chair, I believe we have the right to close, and we have just one speaker.
I reserve the balance of my time.
Madam Chair, to close on our side, I yield such time as he may consume to a distinguished member of the Health Subcommittee, the gentleman from Georgia, Dr. Gingrey.
Madam Chair, I rise in opposition to the amendment.
Madam Chair, again, this amendment continues to ignore the reality around the CLASS program.
The CLASS program has been reviewed by outside analysts, by the HHS actuary and the Congressional Budget Office; and just last year the Obama administration finally admitted what so many already knew, the CLASS program is not workable. In fact, the Congressional Budget Office has certified that not a single person would ever receive benefits from the CLASS program. Any effort to preserve a failed program on the books simply delays any real attempt to ensure every American has access to affordable long-term care coverage.
From the start, the CLASS program was a Big Government idea that independent analysts believed was flawed and unworkable. The American Academy of Actuaries, the Congressional Budget Office and even officials at the Department of Health and Human Services run by Secretary Sebelius had grave concerns about the workability of this program. It has been studied. It does not work. If you would have done this study before you passed it, we would not have wasted millions of taxpayer dollars on a program that was
doomed from the start. Perhaps we should visit what the failed implementation of the CLASS program has done, rather than spend millions on a study of what its removal would do.
I begin by reminding my colleagues that the CLASS program has done nothing to help reduce Federal or State spending. In fact, the Department spent at least $5 million to implement a failed program and an $80 billion hole in the Federal budget. I would also remind my colleague that the CLASS program has done nothing for consumers who are left with a failed program that was overpromised to the public as part of the President's monstrous health care law.
We must move to take the CLASS program off the books so that we can move forward with solutions that work with the private market that are affordable for consumers and don't place additional strain on the Federal and State budgets.
Madam Chair, I rise in opposition to the amendment.
Madam Chair, this amendment continues to ignore the reality. The CLASS program is simply not workable. Keeping the CLASS program and pretending that it will ever work does absolutely nothing and offers no help to millions of Americans who want to maintain their health. Any effort to preserve a failed program on the books simply delays any real attempt to ensure every American has access to affordable, long-term care coverage.
From the start, the CLASS program was a Big Government idea that independent analysts believed was flawed and unworkable. In fact, the Obama administration officials pointed out serious concerns with the CLASS program as early as the beginning of 2009. While those concerns went ignored by the administration until earlier this fall, now is not the time to stall its repeal.
Yesterday, Senator Harkin told reporters that the only way to make CLASS work is to make it mandatory. Are the supporters of the CLASS Act really advocating another mandate? Keeping CLASS on the books is a step in that direction.
Keeping the CLASS program on the books also further threatens the private market and the nearly 8 million Americans who have private long-term care insurance today. You cannot have a functioning long-term care insurance market if there is a continued threat of a government takeover of that market.
We need long-term care reform that builds on what the private market provides, not destroys it. I hope that those on the other side of the aisle have the courage to admit their mistake, repeal this law, and begin to work on a real, workable long-term care policy.
I urge Members to oppose this amendment.
Madam Chairman, I yield back the balance of my time.
Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, this amendment would simply ignore the millions of dollars that have been spent by this administration to reach the same conclusion that so many unbiased analysts had said for years: The CLASS program is unworkable, causing a liability for the potential beneficiary and the taxpayers alike.
This amendment would promote reckless governing that maintains a failed program for further meddling. The CLASS program has done nothing to decrease Medicaid spending, and its inclusion in the Patient Protection and Affordable Care Act was a budget gimmick, a budget gimmick that will cost the American taxpayers $80 billion over the next 10 years.
Alternative policies, such as the Long-Term Care Partnership Program, which was signed into law by President Bush, have decreased Medicaid spending and deterred Americans from making Medicaid their primary payer of long-term care services. That program alone has done more for Medicaid spending than CLASS ever will.
We can and should do more to decrease Medicaid spending and ensure Americans have the access they need to affordable long-term care coverage, but government intrusion into the market is not the way to go. However, we cannot move forward in thinking about better long-term care policies with this failed program hanging over us.
Yesterday, Senator Harkin made it clear that the problem with the CLASS program was that it was voluntary. A vote in favor of this amendment is a vote in favor of another mandate on the American people.
Enough is enough. We must get this failed program off the books so that we can move forward in establishing long-term care policies that work for the American taxpayers, not those that further bankrupt this country.
With that, I yield back the balance of my time.
Mr. Chairman, I move to strike the last word.
Mr. Chairman, to summarize briefly, first of all, there is no CLASS program. The gentlelady was right; this is a woman issue. Women have been promised something that they'll never get with the CLASS Act. Zero people will be enrolled in the CLASS Act. They have a program that doesn't work, they know it won't work, and it's a false sense of hope to say that it will.
HHS studied for 18 months eight different scenarios to fix the CLASS Act from $391 a month premium to $3,000 a month premium. They concluded the same result: The CLASS Act is not fixable. Short of a mandate, there's no way to fix the CLASS Act.
Now, our friends on the other side have had several opportunities to offer amendments to fix the CLASS Act. First of all, H.R. 1173 was marked up in the Energy and Commerce Health Subcommittee, and they didn't offer an amendment. At full committee, the Democrats didn't offer a comprehensive plan to fix the program. And now, with nearly 4 hours of debate, still no amendments to fix the program. Without a mandate, there's no way to fix it.
Mr. Chairman, we must get this program off the books and start over. It was wrong when it was passed. It's simply a liability in our budget, and the American taxpayers who would reject any further attempt by the Federal Government to require something upon them, that is another mandate.
I urge a vote for H.R. 1173 to repeal this CLASS Act. Let's start over again.
I yield back the balance of my time.
Announcement by the Acting Chair