Healthcare Legal News - November 7, 2011 • Volume 1, Number 4

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In This Issue:

- Further Erosion in Healthcare Reform

- Labor & Employment News: Should Your Organization Have An Affirmative Action Plan? Recent Decision Requires Hospitals To Re-Evaluate Whether They Are Subject To Federal Affirmative Action Requirements

- Healthcare Reform News: CMS Eases Standards for Healthcare Providers to Become ACOs

- Litigation News: Medical Malpractice Statutory Caps In Jeopardy

- Healthcare IT News: Mobile Is Coming To Healthcare

Excerpt from: Further Erosion In Healthcare Reform

In mid-October 2011, HHS pulled the rug out from under one of the major components of the Patient Protection and Affordable Care Act (“PPACA”) - the Community Living Assistance Services and Supports Act, better known as the CLASS Act. The CLASS Act is a voluntary, national insurance program for Americans to pay for long-term services they may need in the future.

One of the provisions of the CLASS Act required the Secretary of HHS to certify that the program would be actuarially sound (i.e., financially self supporting) for 5 years. After 19 months of study, Kathleen Sebelius announced on October 14, 2011 that HHS is unable to make this certification. One of the issues was adverse election - the fear that the program would not attract young, healthy individuals, but that people would wait to enroll until they were older and/or in poor health. As a result, HHS has placed implementation of the CLASS Act on hold. Some republicans are now pushing for a bill to completely repeal the CLASS Act.

Please see full newsletter below for more information.

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