H. R. 3590—724 
‘‘(2) The entity has established operating procedures that 
are designed to avoid or minimize conflicts of interest between 
the entity and an active enrollee 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 another entity. 
‘‘(6) If the entity provides counseling or planning services, 
the entity ensures that an active enrollee or beneficiary is 
informed of any financial interest 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. 
‘‘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 subsection (b), including 
additional amounts derived as income from such investments. The 
amounts held in the Fund are appropriated and shall remain avail-
able without fiscal year limitation— 
‘‘(1) to be held for investment on behalf of individuals 
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 beneficiaries under 
the CLASS Independence Benefit Plan. 
‘‘(b) INVESTMENT
OF FUND BALANCE.—The Secretary of the 
Treasury shall invest and manage the CLASS Independence Fund 
in the same manner, and to the same extent, as the Federal Supple-
mentary Medical Insurance Trust Fund may be invested and man-
aged under subsections (c), (d), and (e) of section 1841(d) of the 
Social Security Act (42 U.S.C. 1395t). 
‘‘(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 (herein-
after in this section referred 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 political party), who shall be nomi-
nated by the President for a term of 4 years and subject 
to confirmation 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
H. R. 3590—725 
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 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 actions 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 Congress whenever 
the Board is of the opinion that the amount of the 
CLASS Independence Fund is not actuarially sound 
in 
regards 
to 
the 
projection 
under 
section 
3203(b)(1)(B)(i). 
‘‘(iv) Review the general policies followed in man-
aging the CLASS Independence 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 Independ-
ence 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 actuarial status of 
the CLASS Independence Fund for the current 
fiscal year, each of the next 2 fiscal years, and 
as projected over the 75-year period beginning with 
the current fiscal year; and 
‘‘(IV) an actuarial opinion by the Chief Actuary 
of the Centers for Medicare & Medicaid Services 
certifying that the techniques and methodologies 
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.
H. R. 3590—726 
‘‘(C) RECOMMENDATIONS.—If the Board of Trustees 
determines that enrollment trends and expected future ben-
efit claims on the CLASS Independence Fund are not 
actuarially sound in regards to the projection under section 
3203(b)(1)(B)(i) and are unlikely to be resolved with reason-
able premium increases or through other means, the Board 
of Trustees shall include in the report provided for in 
subparagraph (A)(ii) recommendations for such legislative 
action as the Board of Trustees determine to be appro-
priate, including whether to adjust monthly premiums or 
impose a temporary 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 Independence 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 President without 
regard to the civil service laws and regulations; and 
‘‘(B) a majority of whom shall be representatives 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 independence at home or in 
another residential setting of their choice in the community, 
individuals with expertise in long-term care or disability 
insurance, actuarial science, economics, 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 appointed to fill a vacancy occur-
ring prior to the expiration of a term, in which case the 
individual 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 administra-
tion of the CLASS program established under this title and in 
the formulation of regulations under this title including with respect 
to— 
‘‘(1) the development of the CLASS Independence Benefit 
Plan under section 3203; 
‘‘(2) the determination of monthly premiums under such 
plan; and 
‘‘(3) the financial solvency of the program. 
‘‘(d) APPLICATION OF FACA.—The Federal Advisory Committee 
Act (5 U.S.C. App.), other than section 14 of that Act, shall apply 
to the CLASS Independence Advisory Council. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
H. R. 3590—727 
‘‘(1) IN GENERAL.—There are authorized to be appropriated 
to the CLASS Independence Advisory Council to carry out 
its duties under this section, such sums as may be necessary 
for fiscal year 2011 and for each fiscal year thereafter. 
‘‘(2) AVAILABILITY.—Any sums appropriated under the 
authorization contained in this section shall remain available, 
without fiscal year limitation, until expended. 
‘‘SEC. 3208. SOLVENCY AND FISCAL INDEPENDENCE; REGULATIONS; 
ANNUAL REPORT. 
‘‘(a) SOLVENCY.—The Secretary shall regularly consult with the 
Board of Trustees of the CLASS Independence Fund and the CLASS 
Independence Advisory Council, for purposes of ensuring that 
enrollees premiums are adequate to ensure the financial solvency 
of the CLASS program, both with respect to fiscal years occurring 
in the near-term and fiscal years occurring over 20- and 75-year 
periods, taking into account the projections required for such periods 
under subsections (a)(1)(A)(i) and (b)(1)(B)(i) of section 3202. 
‘‘(b) NO TAXPAYER FUNDS USED TO PAY BENEFITS.—No taxpayer 
funds shall be used for payment of benefits under a CLASS Inde-
pendent Benefit Plan. For purposes of this subsection, the term 
‘taxpayer funds’ means any Federal funds from a source other 
than premiums deposited by CLASS program participants in the 
CLASS Independence Fund and any associated interest earnings. 
‘‘(c) REGULATIONS.—The Secretary shall promulgate such regu-
lations as are necessary to carry out the CLASS program in accord-
ance with this title. Such regulations shall include provisions to 
prevent fraud and abuse under the program. 
‘‘(d) ANNUAL REPORT.—Beginning January 1, 2014, the Sec-
retary shall submit an annual report to Congress on the CLASS 
program. Each report shall include the following: 
‘‘(1) The total number of enrollees in the program. 
‘‘(2) The total number of eligible beneficiaries during the 
fiscal year. 
‘‘(3) The total amount of cash benefits provided during 
the fiscal year. 
‘‘(4) A description of instances of fraud or abuse identified 
during the fiscal year. 
‘‘(5) Recommendations for such administrative or legislative 
action as the Secretary determines is necessary to improve 
the program, ensure the solvency of the program, or to prevent 
the occurrence of fraud or abuse. 
‘‘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 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.