Documents obtained by the Associated Press show that the Obama Administration failed to heed warnings from the chief actuary of the Medicare program, that the projections of the costs of the long-term care plan embedded in Obamacare was bogus. Here’s the story: http://abcnews.go.com/Health/w…
Here’s what Richard Foster, Medicare’s chief actuary, had to say about the CLASS Act, a long-term care plan:
The emails show that the first warning about CLASS came in May 2009, from Richard Foster, head of long range economic forecasts for Medicare. “At first glance this proposal doesn’t look workable,” Foster wrote in an email to other HHS officials, some of whom were working with Congress to get CLASS into the health care law.
Foster said a rough outline of the program would have to enroll more than 230 million people – more than the U.S. workforce – to be financially feasible.
But work on CLASS continued, bolstered by a report for AARP that laid out scenarios for implementing the plan. The AARP study also raised financial concerns, although the seniors’ lobby supports CLASS.
In July, Foster tried again. After reviewing the latest information from Kennedy’s office, he wrote HHS officials: “Thirty-six years of (professional) experience lead me to believe that this program would collapse in short order and require significant federal subsidies to continue.”
Too late. The Obama administration had decided to support CLASS. Documents and emails indicate that Foster was edged out of deliberations. Officials relied on a more favorable analysis from the Congressional Budget Office. In November, Foster went public with his concerns. Congress was well aware, the administration says.
Last week there was news that the Administration disregarded reports from rating agencies, financial analysts and even employees working at the site that Solyndra was destined to fail. That was a $500 million loss for the taxpayer. The CLASS Act is a much bigger fish.
When John Thune of South Dakota introduced an amendment to drop the CLASS Act from Obamacare, Democrats defeated it with Kerry and Kirk both voting to keep the CLASS ACt in place. http://www.senate.gov/legislat…
Even Senator Conrad (D-North Dakota) called the CLASS Act a “Ponzi scheme of the first order.” http://www.washingtonpost.com/…
Would Elizabeth Warren have voted for this Ponzi scheme? Will the media ask her the question? Yes and No.
This is starting to look like a pattern for the Obama Administration