a national, voluntary insurance program for purchasing community living services and supports known as the Community
Living Assistance Services and Supports program (CLASS Act). The CLASS program is designed to expand options for people who become functionally disabled and require long-term services and supports. The CLASS program is effective on January 1, 2011.
Working adults will be able to make voluntary premium contributions either through payroll deductions through their employer or directly
Adults with multiple functional limitations, or cognitive impairments, will be eligible for benefits if they have paid monthly premiums for at least five years and have been em[ployeed for 3 of those 5 years
Adults who meet eligibility criteria will receive a cash benefit that can be used to purchase non-medical services and supports necessary to maintain community residence; payments for institutional care are permitted. The amount of the cash benefit is based on the degree of impairment or disability, averaging no less than $50 per day
CLASS is financed by voluntary premium contributions paid by working adults, either through payroll deductions or direct contributions

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HOW DOES CLASS INTERACT WITH MEDICAID?
CLASS will generally be the primary payer for individuals who are also eligible for Medicaid. The CLASS program gives working adults the opportunity to plan for future long-term care needs by providing a basic cash benefit to those who meet work requirements and have either functional or equivalent cognitive limitations. CLASS is designed to help individuals with functional and/or cognitive limitations remain in the community by purchasing non-medical services and supports such as home health care and adult day care. While the CLASS benefit is not designed to cover the entire costs associated with long-term care needs, it is structured to help offset the costs incurred by millions of adults with chronic and disabling conditions. CLASS has the potential to reduce reliance on Medicaid and provide relief for family caregivers. However, the payout of CLASS benefits will not take effect until 2017, leaving many current seniors and people with disabilities without affordable options to finance long-term care in the short-term. Going forward it will be important to monitor the affordability of premiums and the adequacy of benefits for CLASS enrollees as well as participation rates that will impact the solvency of the program
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The CLASS program will provide individuals with functional and cognitive limitations a cash benefit to purchase non-medical long-term services and supports. CLASS is a national, voluntary insurance program that offers working individuals some protection against the cost of paying for long-term services and supports. Individuals who pay into the program for at least five years (and work during at least three of those five years) and meet eligibility criteria will receive a daily cash benefit, for as long as they meet the eligibility criteria, to purchase services and supports necessary to remain independent and to maintain community residence. Examples of these services and supports can include home health care, adult day care, assistive technology, home modifications, personal assistance services, respite care, accessible transportation and homemaker services. Individuals who move into assisted living facilities or nursing homes can use CLASS benefits to offset the cost of those expenses.
The CLASS benefit also includes voluntary counseling services for assistance in choosing care and care providers, and making decisiEligibility for CLASS benefits is limited to adults with functional limitations, and adults with equivalent cognitive impairments, as defined by the Secretary, who have paid monthly premiums to the program for at least five years and have worked during at least three of those five years. Eligibility for benefits will be determined by yet unspecified organizations and will be limited to individuals who are unable to perform two or more ADLs (e.g. eating, toileting, bathing, dressing, transferring), or individuals who have an equivalent cognitive disability that requires supervision or hands-on assistance to perform those activities (e.g. traumatic brain injury, Alzheimer’s disease, multiple sclerosis, mental retardation). People receive benefits when they present a functional limitation of this type that is expected to last for a continuous period of more than 90 days, as certified by a licensed health ons about accepting or rejecting care. The CLASS program is effective on January 1, 2011.