positive and negative impact of the various welfare programs in the United States

Answer

Positive and Negative Aspects of Selected Welfare Programs in the U.S.

Introduction

     Welfare programs are those social programs that are sanctioned by the government to assist those who live below certain prescribed minimum levels as determined by various state governments. According to Ferman (1969), “the may include subsidies for cash, healthcare and medical provisions, food, housing subsidies, energy and utilities.”(p. 150)  In as much as these programs intend to bridge the gaps on income inequality, alleviate suffering, reduce poverty, improve access to healthcare and education, support children, reduce crime and assist people to get back on their feet, many still consider them an eyesore on the economy and blame them for creating negative stigmas, creating ineffective support systems, failing to address the root causes of poverty, creating cycles of welfare dependence and being costly. In essence, welfare programs have both the positive and negative sides. This paper considers five of such programs: Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income, Children’s Health Insurance Programme (CHIP) and Supplemental Nutrition Assistance Programme (SNAP) and analytically assesses their positive and negative aspects.

1. Temporary Assistance for Needy Families (TANF)

     As a program, TANF was designed and intended to help families that are needy to achieve self-sufficiency. By its very name, TANF is temporary, with the recipient of the grants eligible for benefits for a maximum of two years consecutively, and a five-year lifetime cap. According to Ferman (1969), “one of the benefits of TANF is that it is very specific on its demands on the recipient’s role in planning for their future.”(p. 150) All the recipients of this grant are required to find work within two years of receiving the aid, and this includes the requirement on single-parents to work at least 30 hours a week and those from two parent families 35 to 55 hours. Compared to the old welfare programmes, TANF requires the recipient to take part in work activities in order to receive benefits. For instance, they have to be employed to some degree, be actively in pursuit of a job, or be taking classes that raise the chances of their employability in future. By design, this programme aims to end the perpetual dependency of parents on government aid by getting them ready for employment and marriage.

     The funding of TANF is its major Achilles heel. For over two decades, TANF grant money by the federal government has been almost the same, failing to take into consideration factors like inflation and population growth. This has really weakened the programme as fewer and fewer poor people actually benefit. Its unresponsiveness to recessions is also another disadvantage.  A social programme ought to provide a way out as people reel from the shock of job losses following recessions. TANF failed in this regard even in the last recession, proving incapable of being beneficial to desperate people. In addition, the unresponsiveness of TANF to results is a weakness. The individual states are not mandated to provide the results of what TANF grant actually achieved. This has provided a leeway for the states to divert the funds for other purposes.

1. Medicaid

     Medicaid is a health welfare programme designed to benefit households that are typically low income. The program generally covers eligible low-income adults, expectant women, children and those with disabilities. A report by the Centre on Budget and policy Priorities (2020) captures the essence of Medicaid by asserting that “Medicaid is a counter-cyclical program. Its enrolment expands to meet the rising needs during an economic downturn…” (p. 1). Just like it is with TANF, the federal government oversees and funds most of Medicaid but every state establishes eligibility, sets payment rates and generally administers the programme. It is important that people receive quality healthcare, and Medicaid ensures that even those from low-income households receive care that they would otherwise not afford. Because payments are guaranteed through Medicaid, this gives the healthcare providers an assurance that they will not be riddled with bad debts, erasing medical debt for poorer families. Medicaid also offers medical providers with a natural customer base, because there are people who qualify for the program in every community. The reduction of copays also ensures that the eligible people can access healthcare services at an affordable or no pay at all.

     Medicaid programme has often been frustrated with delayed payments. The lack of timing means that medical providers can at times wait for so long before they are compensated for the services they had already provided. This in turn, has made Medicaid unpopular with a number of medical providers, denying people the chance to access the care that they need. There are regions that tend to be poorer than others in virtually every state; this means that the need for Medicaid and the eligibility is higher in these places. When they seek services, therefore, they may overwhelm the medical care available because of high doctor to patient ratios. This actually forces many to travel longer distances to access the care they need. Because of the nature of payments, many services are refused from doctors when the patient does not have enough money. The discrimination for government provided insurance has often been evident especially in circumstances where some medical providers say that they have reached the quota for Medicaid. As such, some providers flat out reject it.

• Supplemental Security Income

     Supplemental Security Income (SSI) is the next social programme funded by the U.S. federal government and targeted towards vulnerable groups and households. It provides added income benefits to older people who have paid into social security and are eligible to retire as well as to disabled groups who have very little income or no income at all. This cash helps them meet the basic needs for food, shelter and clothing. A major advantage of this programme is that the benefits that are due to the claimant are based upon a federal scale; so unlike TANF and Medicaid, it is fairly predictable and stable. As Moon (1980) observes rightly, “the eligibility for this programme is also not tied to prior employment history.” (p. 18).

     However, because checks are only issued on the first of each month, it can be inconveniencing when there is a dispute on what amount the recipient is to receive or the eligibility as a lot of time would be lost in between. The amount of private life disclosure is also a downside. Typically, the applicant has to provide a great deal of confidential information, and in case of a misunderstanding on the disability documentation, benefits may be stopped.

1. Children’s Health Insurance Program (CHIP)

     CHIP is a social program that is administered by the United States Department of Health and Human Services, and is designed for the coverage of children from families with modest incomes but whose incomes do not give the eligibility for Medicaid. CHIP has provided relief for working families by expanding health coverage to their children and proving to be a safety program during economic downturns. This has greatly reduced disparities among this population. It does this by “expanding the access of children to specialist care like dentist services” (Lewit, 1998 p. 153)

     Several decisions by courts have rendered the state participation in CHIP programmes optional, and this has created inconsistencies that leave many young people uninsured and incapable of accessing quality care. No wonder then that Berg & Theado (1981) argue that “the cost-containment measures implemented by some specialists render this program virtually redundant and non-beneficial to many children who ought to qualify”. The physician participation and enthusiasm has also waned over the years following bureaucratic issues with payments.

1. Supplemental Nutrition Assistance Program (SNAP)

     Known commonly as the Food Stamp program, SNAP is the largest nutrition assistance program funded by the federal government in the United States. It generally provides nutrition assistance to low and no income families so that they can be capable of purchasing healthier foods and attain self-sufficiency. Garnfield (1974) notes that “there is always the need for food, and then there is the ability to purchase it” (p. 600). SNAP program makes it possible for low income and no income families to bridge the gap between this necessity and ability. SNAP benefits stimulate economic growth. This assistance cannot be easily overlooked or turned to other uses because these families cannot live without food. Every dollar they receive to supplement their dietary needs is injected into local businesses and then back into the economy. Thus, its emphasis on eating healthy foods cannot be overlooked.

     Despite these benefits, SNAP recipients are no strangers to stigma. Many are labelled lazy, and as Wilde (2013) asserts, “this may shame many people into entering these programs or even trying to find out if they qualify” (p. 330). Instances of fraud have also been reported where some SNAP recipients are coerced into buying forbidden items like liquor. The limited purchasing power of this program is clearly evident. Many would love to buy other necessities other than food using SNAP, which is virtually impossible.

Conclusion

Federal welfare programs like SNAP, Medicaid, CHIP, SSI and TANF are designed to make the living standards of low or no income people better. In many cases, they have alleviated suffering and put many people to the path of economic recovery. However, they also have disadvantages like stigma and insufficiencies that have to be addressed if they will attain their objectives.