Feb 1, 2012 8:44pm

House Votes to Repeal CLASS Act

The House of Representatives voted today to repeal a lifeless provision of the president’s health care reform law, known as the CLASS Act.

By a vote of 267-159, lawmakers passed H.R. 1173, Fiscal Responsibility and Retirement Security Act of 2011. Twenty-eight Democrats joined a unanimous Republican Conference in supporting the repeal.

Even though the Obama administration last fall declared the law dead in the water because the program is not fiscally sustainable, the Democratic-controlled Senate is unlikely to follow the House’s lead to repeal the provision.

So why did the House repeal it? House Republicans voted to repeal the entire Affordable Care Act last year, but Democrats stood behind the president in defense of their landmark bill. Now, Republicans are trying to take it apart, piece by piece.

“The president’s health care law is making it harder for small businesses to hire new workers and provide insurance for their employees, and Republicans are committed to repealing and defunding it – piece by piece if necessary,” House Speaker John Boehner, R-Ohio, said in a statement after the vote. “The Democrats running Washington used the CLASS Act to mask the true cost of their government takeover of health care, but even the administration now admits CLASS is ‘unsustainable.’ The entire health care law – with its maze of red tape, mandates, and tax hikes – is unsustainable.

Boehner called on the Senate to “follow the House’s lead, scrap the law, and work with us to enact reforms that will actually lower health care costs without hurting small businesses and jeopardizing coverage for families.”

The CLASS Act, a pet project of the late Sen. Ted Kennedy, is a voluntary program where taxpayers could volunteer to pay premiums for long-term care that would allow the taxpayer to get that cash later in life.

Health and Human Services Secretary Kathleen Sebelius wrote a letter to Congress Oct. 14 explaining that a 19-month “comprehensive analysis” of the CLASS program indicated that it was not viable.

The measure, formally known as the Community Living Assistance Services and Supports Act, came with a five-year waiting period before it started to pay out benefits, but it started collecting revenues immediately. Republicans argued that the act was just another example of how the administration hid the cost of the Affordable Care Act.

“The president’s health care law was built with smoke and mirrors in order to hide its true cost from the American people,” said Rep. Tom Price, R-Ga., chairman of the House Republican Policy Committee.  “The CLASS Act is just one prime example of the budget gimmicks Democrats employed to force their bill through Congress.”

Rep. Steve King, R-Iowa, one of the most outspoken critics of the health care law in Congress, said that the vote is “proof that everyone who voted for ObamaCare voted for socialized medicine.”

“This program is a confirmed failure, but Democrats continue to focus on holding on to this legislative trophy rather than on the future of America,” King said in a statement following the vote. “Those who voted for ObamaCare, and those who voted against repealing the CLASS Act, have made it clear that they do not care if their government experiments work, as long as they pave the way for socialized medicine.”

SHOWS:

User Comments

Boehner talks a good talk about enacting “reforms that will actually lower health care costs,” but last I checked, the Republicans didn’t and still haven’t offered any alternative plans to compete with Obamacare.

I’m not sold on Obamacare, but the Republicans haven’t delivered on their promises either nor gave alternatives. Way to pass a pointless bill that is inconsequential in creating jobs and improving the economy.

Posted by: foreal? | February 1, 2012, 10:00 pm 10:00 pm

This was an incredibly unbalanced article. It featured long quotes by Boehner, Price, and King – all, naturally, condemning the entirety of Obama’s health plan with their typical lies and distortions. So where were the counter quotes in support of the plan? There were none. Great journalism there, John Parkinson.

Posted by: Richard Emmet | February 1, 2012, 10:23 pm 10:23 pm

This article does not explain why the CLASS Act is thought to be unsustainable. Is it because the payouts start too soon in relationship to the growth curves in the number of participants and when they will probably start drawing from the fund? On the surface, this sounds like a version of the medical savings accounts the republicans are always proposing to replace Medicare. If they deem the CLASS Act unsustainable, what makes them think their proposed medical savings accounts will be any better? Are they simply opposed to one because it is a public sector plan and in favor of the other because it is a private sector plan?

Posted by: thinks2010 | February 1, 2012, 11:00 pm 11:00 pm

What is wrong with “socialized medicine?” Why are Republicans against this idea? In front of the disease aren’t we all equal? Poor or rich, shouldn’t we be able to have access to the best medical care if needed? But I wish that we all pay our fair share as responsible citizens.

Posted by: Dominique Williams | February 1, 2012, 11:33 pm 11:33 pm

That’s right Domonique let’s get all AMericans paying some federal Income taxes instead of just some of us paying for the freeloaders and moochers. You happen to sound like one if making someone else pay for your medical care is what you desire

Posted by: EDOG | February 1, 2012, 11:53 pm 11:53 pm

@ Edog–Even if you have private health insurance, other people are paying the greater amount for the care you receive.

Posted by: Thinks2010 | February 2, 2012, 12:44 am 12:44 am

foreal? | February 1, 2012, 10:00 pm —- And you would be incorrect. The GOP gave 3 different versions, one of them from Dr. Tom Coburn, but Harry Reid, Pelosi, nor Obama would even read them. Look it up before you put your foot in your mouth next time.

Posted by: commonsenseparty | February 2, 2012, 1:03 am 1:03 am

Dominique Williams | February 1, 2012, 11:33 pm ——– “”"I wish that we all pay our fair share as responsible citizens”"”" That can’t happen if 47% do not pay federal income tax. The POTUS is selling a sham when he talks of equality, he actually means redistribution. As for health care, I just had collar bone surgery, out patient, one hour long surgery. Total cost (according to the hospital): $120,000. Obama is attempting to reign in insurance companies without doing anything about the ridiculous cost of a simple operation like this. Our problem is cost, not simply insurance regulation. Obamacare focuses solely on insurance and not on cost controls.

Posted by: commonsenseparty | February 2, 2012, 1:09 am 1:09 am

“Even though the Obama administration last fall declared the law dead in the water because the program is not fiscally sustainable, the Democratic-controlled Senate is unlikely to follow the House’s lead to repeal the provision.” Okay, Harry, just vote on it, repeal and let Obama sign it. this is a non -issue since even Obama is against it.

Posted by: pksk531 | February 2, 2012, 8:44 am 8:44 am

“Now, Republicans are trying to take it apart, piece by piece.” Not quite right! Even if the GOP wins control of Congress and the White House in November they will NOT repeal the majority of the health care reforms. They’ll do it in the House when they know the Senate will block it, but if they have a chance of it actually passing, they’ll only tackle symbolic things like this. The reason is that people being denied insurance because they switched companies but had certain childhood illnesses, the insurance companies returning to spending only 67% of premiums on health care increase of the now 80-85%, the cost controls, etc. would make the repealers prime targets for opponents in their next election.

Posted by: The_Mick | February 2, 2012, 12:41 pm 12:41 pm

Leave a Reply

Do you have more information about this topic? If so, please click here to contact the editors of ABC News.