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11 Cards in this Set

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  • Back
"Welfare" or AFDC prior to 1996
States set income levels and benefits- take into account geographic variation of living
Automatic Medicare
Given to all eligible families
Had to be single
Open-ended time commitment w/o work requirements
Incentives and disincentives for individuals on welfare and for the states
Incentives to stay on AFDC
1. Didn't need to work, only needed to have kids
2. No marriage incentive
3. States set high benefit levels (b'c gov. paid for half of program.)
4. State gov. had no incentive to get people off welfare
5. Child gets health insurance if on welfare
Guidelines for providing economic support to poor families and children
1. Support parental choice
2. High quality programs
3. Promote quality of opporunity
4. Promote self-sufficency
5. Use public money judiciously and effectively
1996 PRWORA changes: 5 principles
1.Provide assistance to needy families with children
2. End family depedence on welfare by promoting employment- encourage self-sufficiency by capping welfare at 60 months
3. Prevent out-of-wedlock child bearing- promote abstinence
4. Promote formation and maintaining two-parent families
5. Give states flexibility- including cash incentives or cash withdrawals for performance levels; incentives tocut caseloads, bonuses for getting TANF reipcients working, promoting marriage, reducing out-of-wedlock childbearing; unlinked insurance and welfare
TANF
1. States set levels for eligibility and support
2. Incentives in federal funding formula for states to be fiscally responsible
3. Typical time limitations for TANF- 60 months
4. Typical work requirements
5. Restrictions for teen mothers- must live with an adult and be working or going to school to receive benefits
6. Availability for 2-parent families- higher work requirements, no longer incentive to be single
7. Immigrants- no TANF, Food Stamps for 5 years after entering U.S.
8. Enforcement of child support payments- up to 25% penalty for not meeting requirement on states; increased state authority for genetic tests, suspending driver's liscence, garnishing wages, and seizing assets
9. Consolidated child care funding streams (TANF too)- states can use TANF for child care
10. De-link Medicaid from "welfare" cash transfers- SCHIP added
11. Bonuses and penalties to states for performance- bonus for lowest out-of-wedlock births, lowest abortion, highest percentage increase of children in 2-parent families
Medicaid
Was based on income eligibility, not cash transfer
SCHIP
Basically subsidized healthcare which people can receive even if they aren't on welfare.
SCHIP costs
$40 billion to state and federal government
SCHIP number and perentage of children covered and not covered
-SCHIP cover 76% of otherwise uninsured children, or 3.4 million kids
-Medicaid insures 21 million children
-9 million children are still uninsured
Problem with under-enrollemtn
-No knowledge of program
-Daunting application for enrollment and renewal
Impact of economic slow-downs on SCHIP
For a 1% increase in unemployment, 1 million children become uninsured.
People loose jobs with insurance causing reduced tax revenues causing reduced state spending causing reduced SCHIP, TANF funds.
-Reductions in coverage, payments to HCP, increases in co-pay; doctors stop serving Medicaid patients because they receive less reimbursement and getting reimbursement can be a timely hassle