DEPARTMENT OF HEALTH AND HUMAN SERVICES 
OFFICE OF INSPECTOR GENERAL 
WASHINGTON, DC  20201 
DEC  2 8 2012 
TO: 	 Kathy Greenlee 
Administrator 
Administration for Community Living 
FROM:  Stuart Wrigkt 
Deputy Inspector General 
for Evaluation and Inspections 
SUBJECT: 	 Memorandum Report:  Community Living Assistance Services and 
Supports Program:  2012 Report to Congress, OEI-04-11-00451 
Effective January 1, 2011, Title VIII of the Patient Protection and Affordable Care Act 
(hereinafter referred to as the CLASS Act) established the Community Living Assistance 
Services and Supports (CLASS) program.  The CLASS Act requires the Office of 
Inspector General (OIG) to submit an annual report to the Secretary and Congress on the 
overall progress of the CLASS program and the existence of waste, fraud, and abuse in 
the program. This memorandum report fulfills OIG's 2012 reporting requirement. 
To fulfill this requirement in 2011, OIG issued the report Community Living Assistance 
Services and Supports Program:  2011 Report to Congress (OEI-04-11-00450). 
For the relevant text of the CLASS Act, see the Appendix. 
SUMMARY 
According to the CLASS Act, OIG must submit an annual report to the Secretary of 
Health and Human Services (Secretary) and Congress on the overall progress of the 
CLASS program and the existence of waste, fraud, and abuse.  Each report must include 
findings in four areas:  (1) providing cash benefits; (2) determining eligibility; 
(3) providing quality assurance and protecting against waste, fraud, and abuse; and 
(4) recouping unpaid and accrued benefits. 
The Department of Health and Human Services (HHS) could not identify a benefit plan 
that was both actuarially sound and consistent with additional requirements of the 
CLASS Act.  As a result, CLASS program activities were suspended in October 2011. 
Because program activities remained suspended in 2012, OIG has no findings specific to 
the areas specified in its reporting requirement.  Page 2 - Kathy Greenlee 
BACKGROUND  
 
Effective January 1, 2011, the CLASS program was established as a federally 
administered, voluntary insurance program to help working adults cover some costs of 
long-term-care services and supports.  The CLASS Act required the benefit plan to be 
actuarially sound for a 75-year period and to meet several other requirements regarding 
premium amounts, benefit amounts, and benefit eligibility.1   
 
On October 14, 2011, the Secretary informed Congress that HHS had not identified a 
CLASS program benefit plan that was both actuarially sound for the next 75 years and 
consistent with the requirements of the CLASS Act.  Following this announcement, HHS 
suspended program implementation activities.   
 
RESULTS 
 
Prior to program suspension, the CLASS Office within the Administration on Aging was 
responsible for developing, overseeing, and implementing the CLASS program.  
Following program suspension, the CLASS Office focused its efforts on organizing and 
storing key office documents and helping staff transition to other jobs.  The CLASS 
Office was officially abolished on April 18, 2012, with the publication of the Federal 
Register notice that incorporated the Administration on Aging into the newly created 
Administration for Community Living (ACL).2  No CLASS program activities took place 
after this time.   
 
Because program activities remained suspended in 2012, OIG has no findings specific to 
the areas specified in its reporting requirement.  ACL has no plans to resume program 
activity.       
 
CONCLUSION 
 
We consider this memorandum report to meet OIGs annual CLASS Act reporting 
requirement.  OIG will determine the most appropriate way to meet this requirement in 
future years on the basis of the CLASS programs status. 
 
This report is being issued directly in final form because it contains no 
recommendations.  If you have comments or questions about this report, please provide 
them within 60 days.  Please refer to report number OEI-04-11-00451 in all 
correspondence. 
   
                                                           
1 Public Health Services Act  3203(a) and (b), 42 U.S.C.  300ll-2(a) and (b). 
2 77 Fed. Reg. 23250 (Apr. 18, 2012).    Page 3 - Kathy Greenlee 
APPENDIX  
 
Public Health Services Act Sec. 3209, 42 U.S.C.  300ll-8 
 
SEC. 3209.  INSPECTOR GENERALS REPORT. 
 
The Inspector General of the Department of Health and Human Services shall submit an 
annual report to the Secretary and Congress relating to the overall progress of the CLASS 
[Community Living Assistance Services and Supports] program and of the existence of 
waste, fraud, and abuse in the CLASS program.  Each such report shall include findings 
in the following areas: 
 
(1) The eligibility determination process. 
(2) The provision of cash benefits. 
(3) Quality assurance and protection against waste, fraud, and abuse. 
(4) Recouping of unpaid and accrued benefits.