An office that was set up to help run the long-term care program created by President Obama’s national health care law is being shut down by the Department of Health and Human Services, according to an internal email, suggesting the administration may be pulling the plug on the program that has been deemed unsustainable by multiple independent analysts.
Earlier this month, a GOP report prepared by both cambers of Congress, disclosed emails showing that in the rush to pass the health care law, the administration ignored repeated warnings that the program, which was to collect premiums in exchange for long-term care benefits, was financiall unsound becuase it was unlikely to have enough recipients.
In an email sent out this morning, David Yee, who was named as actuary of the program, sent out an email reading, “I’m leaving my position as the CLASS Office actuary as HHS has decided to close down the CLASS Office effective tomorrow.”
The email was pass along by the Republican Policy Committee, which has more here.
The CLASS Act, a brianchild of the late Sen. Ted Kennedy, was used as an accounting gimmick by Democrats to create the appearance that the health care law reduced deficits more than it actually did. Because the CLASS Act was to collect five years of premiums before paying out any benefits, the Democrats could claim a $72 billion short-term surplus in the program as deficit reduction, ignoring the obvious fact that the money would eventually have to pay for benefits.
An HHS representative was not immediately available to comment when contacted. (UPDATE: National Journal quotes an anonymous administration official as saying “the rumur is a flat-out lie.” Though it’s unclear which part was being called a lie.)
The full David Yee email is below:
To: Bob Yee
Subject: CLASS
Dear colleagues,
I’m leaving my position as the CLASS Office actuary as HHS has decided to close down the CLASS Office effective tomorrow. I believe I have made a contribution to CLASS to the best of my ability and hope I haven’t embarrassed the actuarial profession too much.
I had the good fortune to work with, and receive advice from, almost all of you during this assignment. Thank you so much for your help and guidance. You have no idea how comforting it is to know that you have my back. Special thanks to the government actuaries whose predicament I have learned to appreciate – overworked and underpaid.
I’ll be taking some time off in late October. But, as my beloved governor Arnold has promised, I’ll be back.
If you have any questions or thoughts, please share them with me.
Take care.
Bob Yee
