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Obama pulls plug on part of health overhaul law

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Posted: Oct 14, 2011 2:23 PM
Source: Associated Press

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Topics: wbrz, louisiana, obama, health care, law, insurance

WASHINGTON - The Obama administration says it is unable to go forward with a major new program in the president's signature health care overhaul law.

Officials said Friday a new long-term care insurance program has critical design flaws that could not be fixed to make it financially self-sustaining.

Health and Human Services Secretary Kathleen Sebelius said in a letter to Congress she does not see a viable path forward at this time.

The CLASS program was supposed to be a voluntary insurance plan for working adults regardless of age or health. Workers would pay an affordable monthly premium during their careers, and could collect a modest daily cash benefit if they became disabled later in life.

The problem all along has been how to get enough healthy people to sign up.

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