*****This is a re-post from a previous attempt to start blogging. I thought I'd throw it in at the start because it functions as a pretty relevant reference for some of what we'll likely end up talking about later.*****
Just to start off on the right foot,
let’s get the whole welfare thing out of the way. This is some crucial
information if you’re planning on talking to anyone about politics ever.
It’s coming in bullets to make it maximally digestible and reference-able.
There’s a few forms of what might be
called “welfare” in the American governmental system (dodging what most
Americans would term “charity” such as food banks through churches). We’re
looking at the majors – Temporary Aid for Needy Families (TANF, or the
welfare that goes to mothers and children in impoverished situations), unemployment,
food stamps, financial aid for students, Supplemental
Security Income (SSI), and Medicare/Medicaid. There are
several more kinds of welfare programs, but these are the ones most people
complain about when they complain about overspending and misuse. We won’t
get into the business end of welfare too much today, but that would include the
subsidies we give to farms for certain crops or businesses for products (hybrid
cars are a good example). I’ll give you some links for those who want to
know more or argue against what I’m writing.
TANF - This is probably the most misunderstood of all the
welfare programs. This is the one that goes to families (usually mothers)
with children, often with a work requirement for the mothers. It was
previously known as Aid to Dependent Children (ADC) and Aid to Families with
Dependent Children (AFDC). States set the standards for access to the
program within a federal guideline, but it’s always connected with income and
the presence of children in need in the family. It is typical for states
to set a barrier to any possibility of increasing benefits if the mother has
additional children. The most important thing I can share with you about
this form of welfare is that the federal and state governments set some pretty
restrictive rules on receipt of benefits that very few of the people I speak
with seem to know. Those rules include the following:
- In North Carolina and many other states, the benefits are set to a specific dollar amount when you first seek them based on the number of children in the home. In other words, a mother having more children while receiving TANF does not see a rise in benefits (except in very specific situations listed in the link in Appendix C, Standard Counties, Non-financial Eligibility Rules, #10).
- This form of welfare requires recipients either work or do community service (30 hours weekly in a single parent home and more in a two-parent home) unless a state government opts out of the requirement.
- The federal government sets a maximum of 60 months (five years) of receipt for a family in a lifetime. States can set (and some have) more restrictive term limits. This means a mother with a child receiving benefits for three years and halting benefits when she returns to work has only two years remaining if she ever needs to seek the support for any reason in the future.
Unemployment – I worked in the Employment Security Commission in NC (now called the Department of Employment and Commerce). The men and women seeking unemployment checks have
to have a work history enabling them to earn significantly less than they
earned while working as a “welfare” income based on their previous income.
Next, they have to continue to report places they are seeking work each week to
continue receiving benefits. Finally, the unemployment benefit is also
limited to a certain term based on the adult’s work history. It’s a kind
of insurance against losing a job for adults with a history as what some would
call a “contributing member of society.”
Food Stamps (or Supplemental Nutrition Assistance
Program/SNAP) – States distribute this federal
support for food. Eligibility requires you’re registered as seeking
work. The program, like TANF, is means-tested. Families making
beyond a certain percentage of the poverty line are ineligible for
benefits. Additionally you can’t have much money saved (less than $2000
for most families including what you have in cash), and in every state, the
money is distributed as a debit card with restrictions on what it can pay for
in stores to an approved item list. Whites were the largest segment of SNAP recipients in fiscal years 2005-2010.
Financial Aid for Students - Students need to prove academic merit by being
accepted to a college/university program. There are limitations on
available aid based on family income and financial holdings. Some of the
aid comes in the form of grants, but the majority is in loans. Those
loans are typically paid back over 10-25 years, and currently the debt burden
is akin to buying a car, or in some cases buying a house. Loans are also
available from the private sector for individual that do not meet criteria for
need-based loans. The most incredible thing about financial aid loans is
they cannot be discharged by bankruptcy except in incredibly rare
circumstances. Anecdotal Information Warning: I work in a rural
hospital setting and the doctors typically talk about having $200,000-$300000
in loans to pay off. As a quick note, that is not at the time of
discharge from school. A couple hundred thousand dollars after working in
the field paying on loans for months and sometimes years to reach that
point. For fun/terror, you can play with this repayment calculator.
SSI
– Pretty much money for people with recognized disabilities. Getting
approved for disability (SSI and associated benefits) can literally take years
and involve multiple denials of eligibility. Some people, usually with
obvious physical problems, can be approved more quickly. SSI payments are
based on your past total earnings, so people without work histories receive
less money. People living on SSI in North Carolina get an average of
about $680/month or $8160/year as of 2012.
Medicaid/Medicare – Government-supported insurance programs. There’s
some upcoming changes for these programs, but the these are the bullet-points:
- Medicaid is insurance usually associated with TANF and mothers/children. Medicare is usually connected with older adults and Social Security. Both can be granted through SSI.
- Medicaid for the mothers (at least in NC) doesn’t cover inpatient psychiatric care under most circumstances.
- Medicaid is not available to mothers as part of TANF if another family member or another individual has custody of their child.
- Medicaid and Medicare are funded with federal grant money and reduce the burden on the state to pay for individuals who would otherwise seek medical care without insurance.
- Hospitals redistribute medical costs for indigent clients in part to the state and would be able to reduce medical costs for insured individuals further by not having to absorb the cost of care for the uninsured.
- Hospitals cannot legally turn away individuals seeking care without evaluation.
*****End Re-post*****
As a brief note in reference to a response to the original posting, I left off WIC (The Women Infants Children food program). WIC helps provide food support for children up to age 5 and mothers of those children to buy very specific food items. The purchases, previously done by vouchers, are now usually handled on a debit-like card and the funds cannot be accepted by stores for any items except those on the approved list of "nutritious foods" (in NC, it is pretty closely tied to milk, fruits, vegetables, whole grain breads and tortillas, some cereals, peanut butter, eggs, infant food and formula, dried and canned beans and lentils, and soy/tofu products). It's pretty limited funding, mostly focused on making sure breastfeeding mothers are able to provide sufficient nutrition and very young children don't starve.
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