As part of the fiscal cliff deal reached by Congressional leaders and Vice President Joe Biden last night, the so-called CLASS Act – an integral component of Obamacare – will be repealed. CLASS Act – the Community Living Assistance Services and Supports Act -- is a new long-term entitlement program that even Democrats recognized was completely unsustainable It would pay $50 per day for long-term care services for anyone who had paid into the system for five years. In order for the program to work, people would probably have to pay $3,000 per month into the system. Sen. Kent Conrad (D-ND), who heads the Budget Committee, said it was “a Ponzi scheme of the first order, the kind of thing Bernie Madoff would be proud off.”
This was not a major victory for Republicans, since even the Obama administration recognized that there was “no viable path forward” for CLASS Act. But the Act shows just how out of touch the Obama administration is with spending issues – they left the monstrosity on the books. Last year, the House voted to repeal the Act, but the Senate refused. Now it’s been removed.