PSC 2240
According to the Heritage Foundation report, do poor people in the U.S. have an adequate diet? Why or why not?
According to the Heritage Foundation: "the overwhelming majority of poor households have an adequate and reasonably steady supply of food, are not hungry, and are well housed."
OASDI Financing
-15.3% Tax for employees -12.4% for OASDI on the first $117,000 earned -The tax is divided equally between employers and employees.
SNAP benefits
-3 People in household = Max. Allotment of $511 (WITH ZERO INCOME) . -In-Kind benefit
Medicare Eligibility
-65 and older -Disabilities (after a waiting period) People with ALS do not have to wait. -End stage renal kidney disease (added in 1973)
What does Berkowitz mean when he suggests that welfare was a form of political patronage?
He meant that in the early days of welfare, politicians would use welfare as a tool for garnering political support. They would cite their passing of welfare and social security as a means to get reelected. Governor Davey of Ohio was particularly guilty of this practice.
How does the census define living in poverty
The official poverty definition uses money income before taxes and tax credits and excludes capital gains and noncash benefits (such as Supplemental Nutrition Assistance Program benefits and housing assistance). The thresholds do not vary geographically.
What (according to Howard) is the upper tier of the welfare state?
Upper tier: Offers substantial benefits that are uniform across states Indexed to inflation Carries no stigma Benefits offered equally to all citizens, regardless of geography Political support is wide and deep These programs are the last to suffer cutbacks Financed by payroll taxes Includes: Social Security Disability insurance Worker's compensation Unemployment insurance
SSI ( Supplemental Security Income ) eligibility
-65 and older -Blind -Disabled -Adults: Unable to perform substantive gainful activity -Children: Physically or mental impairment that causes --severe functional limitations. -Limited income -Limited assets (home is not counted) -Less than $2,000 for individuals and less than $3,000 for a couple. -U.S. Citizen or qualified alien
What is the FICA tax and what is it used for? What is the rate? Is this a regressive, flat, or progressive tax? Why?
-FICA stands for Federal Insurance Contributions Act -It is used to finance OASDI (Social Security) -It is 15.3% with half being paid by employer and half by employee -Regressive tax
TANF Eligibility
-Federal eligibility requires that a family have a minor child to be eligible for assistance or pregnant woman. ---The family has to have an income lower than the state specified level. Federal law prohibits states from using funds to provide assistance to these families: -an adult who has received federally funded aid for 60 months -unwed teen parents (unless living in an adult-supervised settings. -Teens who have not completed high school -Non-citizens who arrive in the US after 1996 -fugitive felons, parole violates -Persons convicted of a drug-related felony Work requirements
What were the amendments to the Social Security Act in 1939? Why were they important? How do these amendments relate to the distinction between social insurance and welfare?
-Gave survivor benefits to families and dependents. Also moved date of benefits to 1940 from 1942. Fully insured workers had worked 40 quarters in covered employment. -Widows with no work history were now qualified for Old Age assistance. -Provided more generous benefits for aged, married couples. -Extended insurance coverage to widows and children who survived a fully insured worker.
Medicare Part A
-Helps pay for inpatient hospital, home health, skilled nursing facility, and hospice care. -40 quarters (any period of 10 years) is the requirement to be fully insured under OASDI -Financed primarily by the FICA tax
Medicare Part B
-Helps pay for physician, outpatient hospital, home health, and other services. -Financed by premiums, copays, and general revenue
What are the consequences of beginning to receive OA benefits before your normal or full retirement age? What is the consequence of waiting to receive your full OA benefits until after your full retirement age?
-If you receive benefits early then you will be penalized. -If you wait they will mature to their full, or beyond their full potential. However because you receive them earlier, many people ( depending on how long they live ) will end up with the same lifetime benefits.
How did the American Recovery and Reinvestment Act change SNAP?
-Increased the Thrifty Food Plan (TFP) -Increased the minimum monthly benefit from $14 to $16.
What does Medicare NOT cover
-Long-term care (also called custodial care) -Only "medically necessary" nursing care is available Routine dental or eye care -Dentures -Cosmetic surgery -Acupuncture -Hearing aids and exams for fitting them -Prior to 2003, prescription drugs were not covered
SNAP Eligibility
-Means-tested. Based on household. -Financial tests. Assets and monthly income has to be below limits. -Gross income test = Net income - housing - child care costs. Usually below 100% of the Federal poverty standard. -Assets: $22,50 or less countable access unless over 60 or disabled (then it goes up to $3,250). Home is excluded! -Able-bodied adults without dependents must register for work, accept job offers, and fulfill work or training requirements set by state welfare agencies. -Eligibility is limited to 3-6 months in any 36 month period unless they are working at least half time or in a work or training activity. -Automatic eligibility -TANF, SSI, GA in most states.
How does Medicaid relate to Medicare? Is it possible to participate in both programs simultaneously?
-Medicaid pays Medicare expenses (including premiums, deductibles and coinsurance) for individuals whose income is at or below 100% of the Federal poverty level and whose resources are at or below twice the standard allowed under SSI -There are additional groups for whom Medicare related expenses are paid by Medicaid—Medicare beneficiaries with income greater than 100% but less than 135% of the Federal poverty level -Medicaid also can pay Medicare Part A premiums for certain disabled individuals who lose Medicare coverage because of work. These individuals have income below 200% of the Federal poverty level and resources that are no more than twice the standard allowed under SSI -Under Affordable Care Act, age 65 coordinates Medicaid and Medicare eligibility
Medicare Part C
-Medicare advantage program that expands beneficiaries options for participation in private-sector health care plans -Financed by the FICA tax, premiums, and general revenue.
What is a "Medigap" insurance policy? Why do people buy them?
-Medicare beneficiaries may have significant additional costs including copayments, coinsurance, deductibles, and the full cost of services not covered under Medicare. -Medigap is private (but federally regulated) supplemental insurance that fills some of the cost gaps left by original Medicare. -It pays, within limits, most of the health care service charges not covered by Parts A or B of Medicare People buy Medigap insurance to make monthly healthcare expenses more predictable.
What does the income NOT count as income
-Noncash benefits, such as Supplemental Nutrition Assistance/food stamps, health benefits, subsidized housing.
What makes you ineligible to receive TANF benefits?
-Not being a citizen or not being a legal immigrant who has resided in the states for 5 years makes you ineligible. -Felons, fugitives or probation violators (SSI and housing assistance also) -Unmarried, teen drop-outs Fraud (related to TANF, Medicaid, Food Stamps, SSI) - ten year suspension of eligibility -People who refuse to cooperate with IRP -People who refuse to cooperate with child support enforcement -People convicted of drug-related crimes
List and explain several key factors that are thought to distinguish social insurance programs and means-tested transfer programs.
-Participation in Social insurance programs is compulsory and nearly universal, while eligibility for welfare programs is categorical. -Finance: Social insurance programs are funded by dedicated taxes (FICA Tax) Welfare programs are not. Welfare programs are financed by general revenues of many different taxes. -Benefits: Social insurance programs provide higher benefits to higher income groups, while means-tested programs provide assistance based on need. -Administration: The federal government administers social insurance programs, while welfare programs are administered at the state and local level of government. -Stigmatized: Social insurance programs are not stigmatized because they are "Earned"
Medicare Part D
-Prescription drug benefit -Financed by premiums, copays, state revenue, and federal general revenues
What are the two initial tests that one must pass in order to be eligible for Disability Insurance payments from OASDI?
-Recent work test If under age 31, must have worked 6 quarters in covered employment after age 21, earnings must be at least $1200 per quarter If over 31, must have worked 5 years in covered employment since age 21 2. Duration of work test If under 31, must have worked at least half of quarters between 21 and date of disability If over 31, must have worked at least 20 out of the last 40 before you became disabled
Medicaid / SCHIP Eligibility
-States determine which groups will cover. -Federal eligibility -People qualified for AFDC program -Children under 19 in families with incomes at or below the federal poverty level -Children under age 6 whose family income is at or below 133 percent of the Federal poverty level. -Infants born to Medicaid eligible women for the first year of life without restrictions
39. How did the Deficit Reduction Act of 2005 change TANF?
-The Deficit Reduction Act substantially increased the proportion of assistance recipients who must participate in work activities -Caseload credits are now based on reductions from the 2005 caseload. The caseload is the combined total of TANF cases and cases in SSP that are counted as MOE
How has the relationship between age and poverty changed over time?
-The elderly used to be the most poor group, and now they are the least poor -The also have the lowest average income, but also lowest average poverty rate because they receive social security benefits, which puts them just over the poverty line -Poverty rates of all age groups dramatically declined in the 1960s
What restrictions exist on the receipt of social insurance or welfare programs for legal immigrants? Please be specific by program.
-The passage of PRWORA in 1996 expanded restrictions on legal immigrants to receive welfare benefits. -Legal immigrants with disabilities are eligible to receive Supplemental Security Insurance if they were on rolls before PRWORA was passed, or if they are refugees and asylees. -Medicaid is available in emergency situations if payment is not possible to collect unless you get SSI. TANF requires legal status before PRWORA was passed. -Food Stamps require one must be on rolls before PRWORA was passed, or one is under 18, if one is in the US for 5 years, or if one is a refugee or asylee.
What two characteristics define the essential and consistent nature of the tax and benefit structure of the Social Security OASDI program? Briefly explain each characteristic.
-The payroll tax is regressive...people with lower earnings pay a higher tax rate. Because there is a flat tax of 12%, higher income people pay less in taxes. -The benefit structure is progressive...people with lower earnings receive a higher proportion of their contributions back as benefits
What are time limits and why are they thought to be significant to PRWORA?
-There are 60 month time limits under PRWORA - However, there have been virtually no cases closed due to the time limit
Name and briefly explain several important policy changes that were made by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).
-Under AFDC, states could not determine welfare eligibility, but could determine benefits. PRWORA created TANF, which gave the states more flexibility and the ability to determine who qualifies for the welfare program -TANF shifted the focus to "welfare-to-work" policies that promoted transitioning recipients out of welfare and into the workforce. Used to be an individual entitlement, now a state block grant -Child support enforcement- required to cooperate with the state tracking down absent fathers to finance the welfare the mother and child were receiving Shift from providing monthly cash assistance to work support -Not just cash assistance programs, but ability to receive other benefits (disability, 5-year waiting period for immigrants)
What federal social insurance programs and means-tested transfer programs provide benefits to undocumented (illegal) immigrants? Please be specific.
-Undocumented immigrants are not *legally* receiving federal welfare. -Undocumented immigrants can receive free medical treatment in emergency situations when they cannot pay (covered by Medicaid), and they may receive TANF benefits and SNAP through their legal children. -***School lunches*** are also an exception to the norm that no welfare is available for illegal immigrants.
How did the American Recovery and Reinvestment Act change TANF?
-Used social policies to stimulate the economy by distributing cash -TANF two year emergency contingency fund was created -Caseload reduction credit frozen, essentially halting the provisions of the DRA of 2005 -States with growing caseloads would not be penalized
What five amenities are poor households most likely to have (according to the Heritage Foundation report)?
1. Air Conditioning 2. Cable TV 3. Stereo 4. Microwave 5. At least one TV
What are the five stages in the Disability Insurance eligibility determination process?
1. Are you working? 2. Is your condition severe? 3. Is your condition of the List of Impairments? 4. Can you do the work you did before? 5. Can you do any other kind of work?
Name and briefly explain the four revenue sources that currently finance the OASDI program.
1. Most from FICA taxes 2. SECA Taxes 3. interest from US treasury 4. Some general revenue
When was the DI part of OASDI added?
1956
What did Berkowitz say about the origins of the distinction between welfare and social insurance?
Distinction came about during the 1930s where defenders of social security tried to frame it as an alternative to welfare and the "evils that had befallen Europe".
SNAP Financing
SNAP financed completely by food stamp act, unless states choose "buy into" program
What is the largest group of workers that is currently not included in the OASDI program?
State and local workers in states that are not part of the covered employment program. Ex. Ohio Public School teacher
Why does Berkowitz suggest that the Social Security reforms in 1939 were cynical?
The reforms heightened the amount of social paternalism and social judgements in the Social Security program. Married couples were entitled to more benefits, thus promoting marriage.
What groups of workers were specifically excluded from the social security old age benefits when they were created in 1935? What groups were added in the 1950s? What groups were added in the 1980s?
- Excluded in 1935: Agricultural workers, domestic workers, employees of the Federal Government, employees of State and local governments, nonprofit organizations, self-employed persons, workers over the age of 65, and officers and crewmembers of ships. -Included in 1950's: Disability Program and coverage for agricultural workers, domestic workers (maids, chauffeurs, butlers, gardeners), and self-employed persons. The 1950 amendments extended coverage to workers employed in Puerto Rico and the Virgin Islands. Workers employed in Guam and American Samoa were covered under the 1960 Act. -Included in 1980s: Nonprofit employees, all local, State, and Federal employees, officers and crewmembers of ships.
OASDI Eligibility
-Age 65 -Age 62, with reduced benefits -Have worked if covered employment for 40 quarters
OASDI Benefits
-Average monthly benefits for retired workers: $1,264 -Average monthly for widowed mother and two children: $2,536
How are OASDI and SSI eligibility similar? How are they different?
-Elderly people on OASDI may also receive SSI if their OASDI benefits weren't substantial enough. Disabled adults may receive OASDI and/or SSI. -Disabled children (would not receive DI payments, since they have no work history)
What must able-bodied adults without dependents (ABAWDS) do to qualify for SNAP benefits?
An ABAWD is a person between the ages of 18 and 49 who has no dependents and is not disabled. ABAWDs must meet special work requirements, in addition to the general work requirements, to maintain their eligibility. -Register for work; -Accept a suitable job if offered one;
Is eligibility to receive SNAP benefits based on individual, family, or household characteristics?
Based on household characteristics. Financial test. Gross income test - 130% of federal poverty standard
Under what circumstances are OASDI benefits taxable?
Before 1986, OASDI benefits were not taxable. After that crisis in the mid-80's, benefits taxable up to 50% above a certain income threshold. In 1993, it went up to 85%
TANF Financing
Block grant. Federal government provides funds ($16.5 Billion) but also requires States to contribute in the aggregate from their own funds at least $10.4 Billion for benefits and services to needy families with children.
27. How have the distributions of income and wealth changed over the past 30 years?
Both income and wealth inequality has increased over the past 30 years Income: Since 1999, the 90th to 10th percentile income ratio increased 23.1 percent. Wealth: Both mean and median net worth increased from 1989 to 2007, with the mean typically increasing to a greater extent, suggesting that in recent decades wealth has become more concentrated among households at the upper end of the distribution
How do SCHIP eligibility guidelines relate to Medicaid eligibility guidelines?
Children under age 19, in families with incomes at or below the Federal poverty level. Children under age 6 whose family income is at or below 133 percent of the Federal poverty level. SCHIP is not an entitlement program
What role, if any, do attorneys play in the disability eligibility determination process?
Disability is a quasi-judicial process, candidates can appeal their rejection of disability and have a lawyer present at their hearing. Attorneys do play a role in that people have a right to an attorney throughout the process of applying to disability.
What (according to Howard) is the lower tier of the welfare state?
Not uniform across states Not always inflation indexed Stigmatized Politically unpopular Means-tested Financed from general revenues Includes: Medicaid Food stamps Supplemental Security Income (SSI) AFDC (now TANF) Earned Income Credit Tax Section 8 housing vouchers General assistance (cash and medical)
What is the significance of a program being an "individual entitlement?" Which federal programs are individual entitlements?
If a program is an individual entitlement, it means it has a special legal and budgetary status. This means that (a) people have an individual right to receive assistance that can be enforced in federal court and (b) the funding for these programs bypasses budget committees and obliges Congress to appropriate sufficient funds to pay all legitimate claims for benefits. Entitlement programs: Social Security, Medicare, and Medicaid, most Veterans' Administration programs, federal employee and military retirement plans, unemployment compensation, food stamps, and agricultural price support programs.
What is the "donut hole" in Medicare coverage?
In Medicare Part D, the "donut hole" refers to the category of total drug spending that excludes a person from Medicare coverage of those drugs. o Original donut hole occurred when a person spent $2400-5100 a year on drugs o After the Affordable Care Act (2013), the donut hole occurs between $2970-$4750 o The donut hole is set to be phased on entirely by 2020
How does the housing available to poor people in the U.S. compared to people in EU nations (according to the Heritage Foundation report)?
In general: With 2,171 square feet of living space, the average U.S. dwelling is more than twice the size of the average dwelling in Europe.
Explain why means-tested in-kind are provided as social policy benefits rather than cash...name and describe several programs that provide in-kind benefits.
People don't trust welfare beneficiaries and the political motivations (California Casino case). Food stamps and Medicaid are both in-kind benefits. Food stamps are not cash, just a card that is able to buy certain approved items. In the Medicaid process, no cash is swapped. Doctors are reimbursed by the government. Parts of Medicare are also in-kind
How is poverty related to various factors such as nativity, work, age, race, and family structure?
More likely to be poor if you are a family of a wife with no husband. More likely to be poor if you are a black. The northeast has the highest income, followed by west, then Midwest, then south. The elderly are primarily not poor because they receive social security benefits, which puts them just over the poverty line Elderly used to be the most poor group, and now they are the least poor The also have the lowest average income, but also lowest average poverty rate.
What is a Separate State cash assistance Program? Why is this significant to TANF time limits?
TANF has 2 federally mandated time limits: 24 month limit in TANF program before you have to be in a work program (outside envelope of when states can have that requirement) 60 months: maximum period for your lifetime
. What are the two conditions that are required in order to be categorically eligible to receive TANF benefits?
TANF provides cash benefits to able-bodied poor people with children to support and poor pregnant women. To maintain eligibility for TANF, people must satisfy work requirements
31. What is the AIME and how is it calculated? Please be clear and specific.
The AIME stands for average indexed monthly earnings. It is the basis upon which Social Security benefits are calculated. It is based on a worker's 35 highest years of earnings, which are indexed to historical wage growth (earnings through age 60 are indexed; earnings thereafter are counted at nominal value). The 35 highest years of indexed earnings are divided by 35 to determine the worker's career-average annual earnings. The resulting amount is divided by 12. If a worker has less than 35 years of covered employment, then a 0 is added to their average. x
Is it possible to work and receive disability (DI) benefits simultaneously?
Yes, you can work and receive disability so long as your earnings are within the monthly limit. In 2014 that limit was $1070 monthly and $12,840 annually. The disability definition states you are disabled if you are unable to engage in "substantial gainful activity," and not that you cannot work period.
