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HHS Nixes Obamacare Insurance Program

4:46 PM, Oct 14, 2011 • By MICHAEL WARREN
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The Associated Press reports:

WASHINGTON — The Obama administration says it is unable to go forward with a major program in the president's signature health care overhaul law — a new long-term care insurance plan.

Officials said Friday the long-term care program has critical design flaws that can't be fixed to make it financially self-sustaining.

Health and Human Services Secretary Kathleen Sebelius told Congress in a letter that she does not see a viable path forward at this time. By law, implementation of the program was contingent on Sebelius certifying it financially sound.

As Andrew Stiles points out, this could be the greatest Friday afternoon news dump from the Obama administration. The Community Living Assistance Services and Support (CLASS) program was hailed by supporters of the president's health care law as a source of health care cost savings, since it would have been paid for by premiums paid by enrolees, not taxpayer dollars.

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