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. 
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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 OIG’s 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 program’s 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). 
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APPENDIX 

Public Health Services Act Sec. 3209, 42 U.S.C. § 300ll-8

 

SEC. 3209. INSPECTOR GENERAL’S 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.