[Congressional Record (Bound Edition), Volume 158 (2012), Part 1]
[Senate]
[Pages 783-784]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            CLASS ACT REPEAL

  Mr. GRAHAM. Mr. President, the topic I wish to address is the CLASS 
Act repeal being taken up by the House. I understand the HHS Secretary 
has indicated that from her point of view the CLASS Act will not work, 
and this is music to my ears.
  During the Obama health care debate, one of the revenue raisers was 
the CLASS Act wherein the Federal Government would be in the long-term 
health care insurance business and, supposedly, would collect premiums 
over a decade that would allow something like $80 billion in revenue 
that would help pay for Obama health care. However, eventually we would 
have to honor the payments due to the people on the program.

[[Page 784]]

  Senator Conrad from North Dakota called the CLASS Act a Ponzi scheme 
of the first order because what we would be doing under the program is 
collecting premiums for an insurance product and using the money to 
help pay for Obama health care. So when people are ready to get the 
services they have paid for, there would be no money in the program to 
pay them because it was used to offset Obama health care costs. It is 
just not a practical idea. The costs would explode over time. There 
would be adverse selection. So it was an ill-conceived idea.
  The House is going to repeal it. The HHS Secretary said they would 
not implement the program. I hope the Senate will allow repeal so we 
can take it off the table and it is a reason for the Congress to 
revisit the Affordable Health Care Act, Obama health care, because one 
of the components of the legislation relied upon the revenue to be 
collected by the CLASS Act to offset the cost of Obama health care, 
trying to make it deficit neutral. That is no longer a viable option. 
The money to be collected by the CLASS Act is never going to happen. So 
that money cannot be used to make the legislation deficit neutral.
  This is a chance for the Senate, working with the House, to repeal 
the program. I think it would be wise for us all to sit down and try to 
reevaluate what does this mean in terms of the viability of the 
Affordable Health Care Act because the assumptions made by the CLASS 
Act are never going to come true.
  I have been working with Senator Thune for a very long time to keep 
this program from coming about. I would like to say this is a 
bipartisan moment, where we have stopped a program that would have a 
devastating effect long term on the country's finances and would do 
very little to improve health care.
  I wish to, one, congratulate the HHS Secretary for understanding this 
program is unsound. I would like to make sure it is repealed, and I 
think Congress should be the body to do that. But this is good news for 
the taxpayer. It is good news for the country as a whole that we are 
not going to allow a program to be created that is unsustainable, that 
is going to add to the debt and do very little to take care of our 
health care needs. It was a Ponzi scheme. It is a Ponzi scheme that 
needs to be buried politically, as soon as possible.
  I look forward to taking up the House-passed legislation. I hope we 
can get bipartisan support in the Senate to make sure what HHS 
Secretary Sebelius said never happens, that the CLASS Act never becomes 
reality because it is an unsound, unwise, poorly constructed program, 
and this is a chance for the Senate to come together and do something 
about it with our House colleagues.
  With that, I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. LIEBERMAN. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. LIEBERMAN. Mr. President, I note the presence on the floor of the 
distinguished Senator from Delaware, to whom I am pleased to yield.
  The PRESIDING OFFICER. The Senator from Delaware.
  Mr. COONS. Mr. President, I thank Senator Lieberman.
  I ask unanimous consent to speak in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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