US social programs Flashcards

1
Q

The Social Security Act, as part of the New Deal legislation created under President Roosevelt, established two types of cash benefits

A

Social insurance

Public assistance

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2
Q

Social insurance programs included New Deal

A

A pension for retired workers (informally called Social Security)

Unemployment Insurance (UI)

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3
Q

New Deal public assistance programs for the poor included

A

Aid to Dependent Children (ADC), Old Age Assistance (OAA), and Aid to the Blind (AB).

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4
Q

In 1962, ADC became

A

Aid to Families with Dependent Children (AFDC).

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5
Q

While, by 1974,

A

Old Age Assistance (OAA), Aid to the Blind (AB) and Aid to the Permanently and Totally Disabled (APTD) were consolidated under SSI, Supplemental Security Income

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6
Q

AFDC came to be regarded as welfare.

In 1996, with the introduction of welfare reform, Congress ended the federal entitlement to welfare by replacing AFDC with

A

Temporary Aid to Needy Families (TANF).

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7
Q

Personal Responsibility and Work Opportunity Reconciliation Act of 1996, eliminated the 60 year old fed guarantee.

A

PROWRA marked a major change in US social policy by repealing AFDC (a federal entitlement) and replacing it with TANF (a state block grant)

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8
Q

What is an entitlement?

A

Government program, good, service or benefit that provides individuals with personal financial benefits.

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9
Q

What did AFDC program provide?

A

Cash to families

Modified state by state (eligibility levels; benefit levels)

Low levels of cash assistance

Below poverty

An Entitlement

Automatic eligibility for Medicaid and other “in-kind” benefits

Modest Work Requirements:
JOBS mandated 20% of recipients in a state be mandated to work.

Modest Work Supports
JOBS program mandated higher “earnings disregards”; transitional child care and Medicaid; as well as job training, basic education and community work experience.

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10
Q

Primary goals of TANF:

A
  1. Provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;
  2. End the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;
  3. Prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies;
  4. Encourage the formation and maintenance of two-parent families.
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11
Q

TANF requirements

A

Eliminated entitlement to benefits

Work requirements (work activities)

Time limits
5-year maximum life time limit on benefit receipt
States can exempt 20% of caseload

Funding in block grants to states ($16.5 billion/year)

A pot of money vs. increased federal money to match need

States now design their own programs

Family caps and sanctions – allowed states to impose

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12
Q

What did a longitudinal study on Welfare reform conclude?

A

On average, household income, earnings, and wages improved among former and current welfare recipients, although such improvements appear to do little to lift families out of poverty. Strong labor markets are important for gains to be realized.

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13
Q

What are examples of entitlements?

A
Social Security
Medicare
Medicaid
most Veterans' Administration programs
federal employee and military retirement plans
unemployment compensation
food stamps
agricultural price support programs
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14
Q

What is a block grant?

A

A block grant confers monies to the state from the federal government.

The state has discretion, under certain broadly stated federal goals, in the dissemination of these funds.

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15
Q

TANF adjusts benefits for COLA

T or F

A

F

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16
Q

TANF does have lifetime limits and work requirements.

T or F

A

T

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17
Q

What is Residual Welfare?

A

General Assistance (GA)

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18
Q

What is GA?

A

A residual program with limited availability for groups who do not fit into either TANF or SSI

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19
Q

What is the summary of General Assistance?

A

For the most part, the federal government has left it up to states to provide basic assistance to childless adults in need of assistance.

states have never provided significant support for this group, this limited support has weakened significantly over time

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20
Q

What is Supplemental Security Income (SSI)?

A

Means tested

federally-administered income assistance program authorized by Title XVI of the Social Security Act
established in 1972 (Public Law 92-603) with benefits first paid in 1974

SSI provides monthly cash payments in accordance with uniform, nationwide eligibility requirements to needy aged, blind, and disabled persons.

21
Q

What was the vision of SSI?

A

A basic national income maintenance system for the aged, blind, and disabled which would differ from the state programs it replaced in a number of ways.

Administered by social security

22
Q

Who is eligible for SSI?

A

Disability is defined as the inability to engage in substantial gainful activity (SGA) by reason of a medically determinable physical or mental impairment expected to result in death or last at least 12 months

23
Q

How do benefits vary by groups served?

A

SSI –

Federal benefit

Uniform across states

Automatic eligibility for SNAP

Higher benefit levels

Adjusted annually for cost of living

24
Q

Health care dominates all other categories of benefits and services.

A

Accounting for nearly half of federal spending for 2008/2009 and a bit more than half for 2015.

25
Q

SUPPLEMENTAL NUTRITION ASSISTANCE (SNAP) – Income/Asset tests

A

Households may have $2,000 in countable resources
Ex., bank account, or
$3250 in countable resources if at least one person is age 60 or older, or is disabled

Certain resources are NOT counted, such as a 
home and lot
resources of people who receive SSI
resources of people who receive TANF 
most retirement and pension plans

Procedures for handling vehicles are determined at the state level.
number of States exclude the entire value of the household’s primary vehicle as an asset.
In States that count the value of vehicles, the fair market value of each licensed vehicle that is not excluded is evaluated

26
Q

Means-tested programs

A

Supplementary Security Income (SSI) – CASH BENEFIT
Federal aid to the aged, blind, disabled
Uniform national eligibility

Temporary Assistance to Needy Families (TANF)– CASH BENEFIT
Federal funds to state as a block grant/State MOE funds

General Assistance – CASH BENEFIT/IN-KIND IN SOME PLACES
State funds/not available in every state

Medicaid – IN-KIND BENEFIT
Health insurance
Federal/State funds

SNAP – “NEAR CASH”/ENTITLEMENT
Vouchers/EBT card for food items
Federal funds/administered at the state level
ABWD work requirements

27
Q

What is SNAP?

A

Supplemental Nutritional Assistance Program

SNAP is the largest domestic food and nutrition assistance programs administered by the Food and Nutrition Service (FNS) of the U.S. Department of Agriculture (USDA).

28
Q

Welfare under TANF

A

State variation in policies

Lifetime limits on welfare

Federal limit is 60 months (5 years)

9 states opted for shorter time limits

Florida: 48 months
Utah: 36 months
Arkansas: 24 months

Exemptions for hardship cases

17 states provide an exemption to “verifiable” victims of domestic violence
7 states provide an exemption if caring for an infant under a few months old

29
Q

Unemployment Insurance

A

Type of benefit:

Cash

Partial wage replacement for those who have lost their jobs

Social insurance

Event conditioned (loss of covered employment)

Not means-tested

30
Q

Four means tested cash assistance programs?

A

Temporary Assistance for Needy Families (TANF)

Supplemental Security Income (SSI)

General Assistance (GA)

Earned Income tax Credit (EITC)

31
Q

Welfare under AFDC

A

State powers

Set their own benefit levels

Established (within federal limitations) income and resource limits

Administered the program or supervised its administration

States were entitled to unlimited federal funds for reimbursement of benefit payments, at matching rates.

States were required to provide aid to all persons who were eligible. ENTITLEMENT

32
Q

Fed match rates and give a lot of money to the states

A

The federal government reimburses the states for operating an AFDC program with matching funds.

Federal financial participation is provided to the states at different rates for various activities.

Administrative and training costs are matched at a 50 percent rate.

33
Q

UI during recessions

A

Structured to be counter-cyclical

Pay benefits during recessions

Collect revenues during recovery

34
Q

Social Security Benefits

A

Social Security: pays cash benefits to retired and disabled workers and their families and to the families of deceased workers

Federal old-age and survivors insurance (OASI)

Federal Disability Insurance (DI) - cash program that provides benefits to replace a portion of earnings lost due to a severe disabling condition that can be expected to last for 12 months or result in death.

35
Q

How is Social Security Funded?

A

Employers pay a matching amount for a combined tax of 12.4 percent of earnings. The OASDI tax rate for wages is set by statute.

Self-employed persons pay both the employee and employer share for a total 12.4 percent.

Half of this tax (the employer share) is a deductible business expense for income tax purposes.

Higher-income Social Security beneficiaries pay federal income taxes on their benefit income, and these taxes help pay for Social Security.

36
Q

Federal Insurance Contributions Act (FICA)

A

FICA is an acronym for “Federal Insurance Contributions Act.” FICA tax is the money that is taken out of workers’ paychecks to pay older Americans their Social Security retirement and Medicare (Hospital Insurance) benefits. It is a mandatory payroll deduction.

37
Q

Trust funds:

A

Old-Age and Survivors Insurance (OASI) trust fund

Disability Insurance (DI) trust fund

Hospital Insurance (HI) trust fund

Supplementary Medical Insurance (SMI) trust fund

38
Q

What “type of taxes” are FICA taxes?

A

Social Security is said to be a regressive tax

Social security is a regressive tax b/c it takes a larger share of the income of middle and lower income workers than higher income workers

Levied against wages only not dividends, rents or interests

Social Security taxes are levied on earnings up to $128,400 so every dollar above $128,400 is not subject to the 6.2% FICA taxes.

39
Q

What do you need to know to understand Social Security?

A

Social Security is largely a “pay-as-you go” program

Today’s workers pay Social Security taxes (FICA), this money is used for benefits for current retirees.

Not like a pre-funded company pension where money is accumulated in advance and paid out at retirement.

This is important to understand so you have the tools to understand conversation about potential reforms.

40
Q

What do you need to know…?

A

Where do you find out the factual data that should ground your conversation?

The office of the Chief Actuary of Social Security makes projections about Social Security finances that are used in an annual report to Congress.

in order to do so, assumptions about population growth, the performance of the economy, wages and unemployment must be made to develop estimates

this is why you may hear different dates between political actors, it depends on which scenario the actor chooses to highlight

41
Q

To bring the system into long-term balance congress has to either

A

Reduce benefits

Increase revenue or

Some combination of these two approaches, there is no other way

42
Q

Possible Social Security fixes

A

Raise taxable earnings cap from $128,400

Raise the Social Security tax rate from 12.4%

Extend FICA taxes to other sources of income (rents, dividends rather than just wages)

43
Q

Medical Programs: How do Americans receive healthcare?

A

Our system is based on insurance provision under both private and public systems which Americans use to access health care providers.

Medicaid: income-tested, varies by state (some categorical eligibility, some only income-eligible)

Medicare: universal provided to the elderly and certain other groups, age-conditioned

S-CHIP: children

Employer-provided benefits

Credits to purchase plans on the ACA marketplace (some states have their own plans, others did not develop and their residents must use the federal plans).

44
Q

Medicaid: Public Insurance

A

Type of benefit:

in-kind

means-tested

categorical eligibility (this changed after the ACA in some states)

Funding:

jointly financed by state and federal government

45
Q

Medicaid Fed Guidelines?

A

Federal guidelines require certain groups are covered

qualified parents
children
pregnant women with low incomes
older adults with low income
people with disabilities with low incomes

states can extend benefits to other groups

The ACA changed the categories listed above to an income-test rather than only the specified groups.

This is a large change for states that expanded their Medicaid programs.

46
Q

State Child Health Insurance Programs (S-CHIP)

A

1997: Expanded coverage to children up through 200% of FPL
8. 4 million children enrolled (2015)

(CHIP) provides health coverage to eligible children through both
Medicaid
separate CHIP programs

CHIP is administered by states, according to federal requirements.

The program is funded jointly by states and the federal government.

47
Q

Medicare

A

In-kind

Social insurance

Universal benefit

Entitlement

Event conditioned (age eligibility, disability)

Not means-tested

Pays for health care people 65 or >

Pays for health care for people <65 with certain disabilities

People of all ages with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant).

48
Q

Magnitude of Medicare

A

Medicare is the largest health program in the U.S.

Federal program

In 2017 Medicare covered 58.4 million people

  1. 5 million that were 65 or older
  2. 9 million disabled

Total expenditures
710.2 billion

49
Q

Medicare’s two trust funds

A

Hospital Insurance (HI) Trust Fund (pays for Part A benefits)

Supplementary Medical Insurance (SMI) Trust Fund (pays for part B and Part D benefits)