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‘‘(II) the failure of a beneficiary 
to elect under paragraph (4)(B) to re-
ceive such benefits as a lump-sum 
payment before the end of the 12- 
month period in which such benefits 
accrued. 
‘‘(ii) PAYMENT
INTO
CLASS
INDE-
PENDENCE FUND.—Any benefits recouped 
in accordance with clause (i) shall be paid 
into the CLASS Independence Fund and 
used in accordance with section 3206. 
‘‘(6) REQUIREMENT TO RECERTIFY ELIGIBILITY 
FOR RECEIPT OF BENEFITS.—An eligible beneficiary 
shall periodically, as determined by the Secretary— 
‘‘(A) recertify by submission of medical 
evidence the beneficiary’s continued eligibility 
for receipt of benefits; and 
‘‘(B) submit records of expenditures attrib-
utable to the aggregate cash benefit received by 
the beneficiary during the preceding year. 
‘‘(7) SUPPLEMENT, 
NOT
SUPPLANT
OTHER 
HEALTH CARE BENEFITS.—Subject to the Medicaid 
payment rules under paragraph (1)(D), benefits re-
ceived by an eligible beneficiary shall supplement, 
but not supplant, other health care benefits for 
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which the beneficiary is eligible under Medicaid or 
any other Federally funded program that provides 
health care benefits or assistance. 
‘‘(d) ADVOCACY SERVICES.—An agreement entered 
into under subsection (a)(2)(A)(ii) shall require the Pro-
tection and Advocacy System for the State to— 
‘‘(1) assign, as needed, an advocacy counselor 
to each eligible beneficiary that is covered by such 
agreement and who shall provide an eligible bene-
ficiary with— 
‘‘(A) information regarding how to access 
the appeals process established for the program; 
‘‘(B) assistance with respect to the annual 
recertification and notification required under 
subsection (c)(6); and 
‘‘(C) such other assistance with obtaining 
services as the Secretary, by regulation, shall 
require; and 
‘‘(2) ensure that the System and such coun-
selors comply with the requirements of subsection 
(h). 
‘‘(e) ADVICE
AND ASSISTANCE COUNSELING.—An 
agreement entered into under subsection (a)(2)(A)(iii) 
shall require the entity to assign, as requested by an eligi-
ble beneficiary that is covered by such agreement, an ad-
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vice and assistance counselor who shall provide an eligible 
beneficiary with information regarding— 
‘‘(1) accessing and coordinating long-term serv-
ices and supports in the most integrated setting; 
‘‘(2) possible eligibility for other benefits and 
services; 
‘‘(3) development of a service and support plan; 
‘‘(4) information about programs established 
under the Assistive Technology Act of 1998 and the 
services offered under such programs; 
‘‘(5) available assistance with decisionmaking 
concerning medical care, including the right to ac-
cept or refuse medical or surgical treatment and the 
right to formulate advance directives or other writ-
ten instructions recognized under State law, such as 
a living will or durable power of attorney for health 
care, in the case that an injury or illness causes the 
individual to be unable to make health care deci-
sions; and 
‘‘(6) such other services as the Secretary, by 
regulation, may require. 
‘‘(f) NO EFFECT ON ELIGIBILITY FOR OTHER BENE-
FITS.—Benefits paid to an eligible beneficiary under the 
CLASS program shall be disregarded for purposes of de-
termining or continuing the beneficiary’s eligibility for re-
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ceipt of benefits under any other Federal, State, or locally 
funded assistance program, including benefits paid under 
titles II, XVI, XVIII, XIX, or XXI of the Social Security 
Act, under the laws administered by the Secretary of Vet-
erans Affairs, under low-income housing assistance pro-
grams, or under the supplemental nutrition assistance 
program established under the Food and Nutrition Act of 
2008. 
‘‘(g) RULE OF CONSTRUCTION.—Nothing in this title 
shall be construed as prohibiting benefits paid under the 
CLASS Independence Benefit Plan from being used to 
compensate a family caregiver for providing community 
living assistance services and supports to an eligible bene-
ficiary. 
‘‘(h) PROTECTION AGAINST CONFLICTS OF INTER-
EST.—The Secretary shall establish procedures to ensure 
that the Eligibility Assessment System, the Protection and 
Advocacy System for a State, advocacy counselors for eli-
gible beneficiaries, and any other entities that provide 
services to active enrollees and eligible beneficiaries under 
the CLASS program comply with the following: 
‘‘(1) If the entity provides counseling or plan-
ning services, such services are provided in a manner 
that fosters the best interests of the active enrollee 
or beneficiary. 
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‘‘(2) The entity has established operating proce-
dures that are designed to avoid or minimize con-
flicts of interest between the entity and an active en-
rollee or beneficiary. 
‘‘(3) The entity provides information about all 
services and options available to the active enrollee 
or beneficiary, to the best of its knowledge, including 
services available through other entities or providers. 
‘‘(4) The entity assists the active enrollee or 
beneficiary to access desired services, regardless of 
the provider. 
‘‘(5) The entity reports the number of active 
enrollees and beneficiaries provided with assistance 
by age, disability, and whether such enrollees and 
beneficiaries received services from the entity or an-
other entity. 
‘‘(6) If the entity provides counseling or plan-
ning services, the entity ensures that an active en-
rollee or beneficiary is informed of any financial in-
terest that the entity has in a service provider. 
‘‘(7) The entity provides an active enrollee or 
beneficiary with a list of available service providers 
that can meet the needs of the active enrollee or 
beneficiary. 
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‘‘SEC. 3206. CLASS INDEPENDENCE FUND. 
‘‘(a) ESTABLISHMENT OF CLASS INDEPENDENCE 
FUND.—There is established in the Treasury of the 
United States a trust fund to be known as the ‘CLASS 
Independence Fund’. The Secretary of the Treasury shall 
serve as Managing Trustee of such Fund. The Fund shall 
consist of all amounts derived from payments into the 
Fund under sections 3204(f) and 3205(c)(5)(C)(ii), and 
remaining after investment of such amounts under sub-
section (b), including additional amounts derived as in-
come from such investments. The amounts held in the 
Fund are appropriated and shall remain available without 
fiscal year limitation— 
‘‘(1) to be held for investment on behalf of indi-
viduals enrolled in the CLASS program; 
‘‘(2) to pay the administrative expenses related 
to the Fund and to investment under subsection (b); 
and 
‘‘(3) to pay cash benefits to eligible bene-
ficiaries under the CLASS Independence Benefit 
Plan. 
‘‘(b) INVESTMENT OF FUND BALANCE.—The Sec-
retary of the Treasury shall invest and manage the 
CLASS Independence Fund in the same manner, and to 
the same extent, as the Federal Supplementary Medical 
Insurance Trust Fund may be invested and managed 
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under subsections (c), (d), and (e) of section 1841(d) of 
the Social Security Act. 
‘‘(c) BOARD OF TRUSTEES.— 
‘‘(1) IN GENERAL.—With respect to the CLASS 
Independence Fund, there is hereby created a body 
to be known as the Board of Trustees of the CLASS 
Independence Fund (hereinafter in this section re-
ferred to as the ‘Board of Trustees’) composed of 
the Secretary of the Treasury, the Secretary of 
Labor, and the Secretary of Health and Human 
Services, all ex officio, and of two members of the 
public (both of whom may not be from the same po-
litical party), who shall be nominated by the Presi-
dent for a term of 4 years and subject to confirma-
tion by the Senate. A member of the Board of 
Trustees serving as a member of the public and 
nominated and confirmed to fill a vacancy occurring 
during a term shall be nominated and confirmed 
only for the remainder of such term. An individual 
nominated and confirmed as a member of the public 
may serve in such position after the expiration of 
such member’s term until the earlier of the time at 
which the member’s successor takes office or the 
time at which a report of the Board is first issued 
under paragraph (2) after the expiration of the 
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member’s term. The Secretary of the Treasury shall 
be the Managing Trustee of the Board of Trustees. 
The Board of Trustees shall meet not less frequently 
than once each calendar year. A person serving on 
the Board of Trustees shall not be considered to be 
a fiduciary and shall not be personally liable for ac-
tions taken in such capacity with respect to the 
Trust Fund. 
‘‘(2) DUTIES.— 
‘‘(A) IN GENERAL.—It shall be the duty of 
the Board of Trustees to do the following: 
‘‘(i) Hold the CLASS Independence 
Fund. 
‘‘(ii) Report to the Congress not later 
than the first day of April of each year on 
the operation and status of the CLASS 
Independence Fund during the preceding 
fiscal year and on its expected operation 
and status during the current fiscal year 
and the next 2 fiscal years. 
‘‘(iii) Report immediately to the Con-
gress whenever the Board is of the opinion 
that the amount of the CLASS Independ-
ence Fund is not actuarially sound in re-
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gards to the projections under section 
3203(b)(1)(B)(i). 
‘‘(iv) Review the general policies fol-
lowed in managing the CLASS Independ-
ence Fund, and recommend changes in 
such policies, including necessary changes 
in the provisions of law which govern the 
way in which the CLASS Independence 
Fund is to be managed. 
‘‘(B) REPORT.—The report provided for in 
subparagraph (A)(ii) shall— 
‘‘(i) include— 
‘‘(I) a statement of the assets of, 
and the disbursements made from, the 
CLASS Independence Fund during 
the preceding fiscal year; 
‘‘(II) an estimate of the expected 
income to, and disbursements to be 
made from, the CLASS Independence 
Fund during the current fiscal year 
and each of the next 2 fiscal years; 
‘‘(III) a statement of the actu-
arial status of the CLASS Independ-
ence Fund for the current fiscal year, 
each of the next 2 fiscal years, and as 
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projected over the 75-year period be-
ginning with the current fiscal year; 
and 
‘‘(IV) an actuarial opinion certi-
fying that the techniques and meth-
odologies used are generally accepted 
within the actuarial profession and 
that the assumptions and cost esti-
mates used are reasonable; and 
‘‘(ii) be printed as a House document 
of the session of the Congress to which the 
report is made. 
‘‘(C) RECOMMENDATIONS.—If the Board 
of Trustees determines that enrollment trends 
and expected future benefit claims on the 
CLASS Independence Fund are not actuarially 
sound in regards to the projections under sec-
tion 3203(b)(1)(B)(i) and are unlikely to be re-
solved with reasonable premium increases or 
through other means, the Board of Trustees 
shall include in the report provided for in sub-
paragraph (A)(ii) recommendations for such 
legislative action as the Board of Trustees de-
termine to be appropriate, including whether to 
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adjust monthly premiums or impose a tem-
porary moratorium on new enrollments. 
‘‘SEC. 3207. CLASS INDEPENDENCE ADVISORY COUNCIL. 
‘‘(a) ESTABLISHMENT.—There is hereby created an 
Advisory Committee to be known as the ‘CLASS Inde-
pendence Advisory Council’. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The CLASS Independence 
Advisory Council shall be composed of not more 
than 15 individuals, not otherwise in the employ of 
the United States— 
‘‘(A) who shall be appointed by the Presi-
dent without regard to the civil service laws and 
regulations; and 
‘‘(B) a majority of whom shall be rep-
resentatives of individuals who participate or 
are likely to participate in the CLASS program, 
and shall include representatives of older and 
younger workers, individuals with disabilities, 
family caregivers of individuals who require 
services and supports to maintain their inde-
pendence at home or in another residential set-
ting of their choice in the community, individ-
uals with expertise in long-term care or dis-
ability insurance, actuarial science, economics, 
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and other relevant disciplines, as determined by 
the Secretary. 
‘‘(2) TERMS.— 
‘‘(A) IN GENERAL.—The members of the 
CLASS Independence Advisory Council shall 
serve overlapping terms of 3 years (unless ap-
pointed to fill a vacancy occurring prior to the 
expiration of a term, in which case the indi-
vidual shall serve for the remainder of the 
term). 
‘‘(B) LIMITATION.—A member shall not be 
eligible to serve for more than 2 consecutive 
terms. 
‘‘(3) CHAIR.—The President shall, from time to 
time, appoint one of the members of the CLASS 
Independence Advisory Council to serve as the 
Chair. 
‘‘(c) DUTIES.—The CLASS Independence Advisory 
Council shall advise the Secretary on matters of general 
policy in the administration of the CLASS program estab-
lished under this title and in the formulation of regula-
tions under this title including with respect to— 
‘‘(1) the development of the CLASS Independ-
ence Benefit Plan under section 3203; and 
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