Today HHS Secretary Kathleen Sebelius admitted that what we wrote here is true: the CLASS Act, a long-term care program that was part of Obamacare, cannot be implemented in a manner that is actuarially sound. Therefore, the administration is killing the program.
This isn’t a surprise; well before it was passed, Rick Foster, the Chief Actuary of HHS’ Centers for Medicare and Medicaid Services, wrote that “[t]hirty-six years of actuarial experience lead me to believe that this program would collapse in short order and require significant federal subsidies to continue.” The Obama administration and Congressional Democrats passed it anyway. Remember how the president claimed that Obamacare would have a positive impact on the federal budget? $86 billion of that alleged positive impact came from CLASS, now abandoned–on a Friday afternoon!–as fiscally hopeless.
Currently there is a lot of uproar over alleged shady practices by banks and others, but no private entity has perpetrated a fraud as brazen as the one that the Obama administration committed in connection with Obamacare.