Tuesday, June 25, 2013

Issue 106 The entitlements part 2 June 25 2013


Medicaid and the rest:

            Let’s start with Medicaid which is currently the most costly component of the Social Security legislation and the other social welfare programs like unemployment, or aid to needy children, which are also bogged down by politics and bureaucracy.  The best way to solve the cost dilemma at the Federal level, and even the State level for they are obligated to provide matching funds for Medicaid, is to turn over all of these programs to the States.  All of these programs primarily deal with the impoverished, save unemployment which is aimed at preventing a family from descending into poverty.  The reason these should be turned over to the States is because they have a vested interest to aid the poor within their own jurisdiction.  It benefits the States community for it removes unfunded mandates and allows States to customize benefits and aid based on such things as a recipient’s income through the lens of what it takes to live in a certain area.  If an area requires less money to live their then the recipient will receive less benefits while an area which is more expensive to live in a recipient will get more benefits.  This is a major improvement over the one size fits all approach of the Federal Government which may be giving too little to some and too much to others.  Without all of the mandates and the Federal bureaucracy States can provide adequate welfare in the form of health benefits, unemployment and financial assistance to those who need it with less waste fraud and abuse.

 Addressing fears:          
          The fear with States taking over for the Federal Government is that people will move around to States that provide the best benefits which in turn overloads the States welfare system.  It is doubtful that such a situation will come to pass however as in addition to the recipients’ income, the amount of benefits is also limited by the expense it takes to live in a given area.  If your income is high, but it does not cost much to live in the area you live in, you will receive little to no benefits.  If your income is low, but the area you moved to is more expensive you will receive more benefits.  That is safety net number one to stave off the nightmare scenario.  Safety net number two is the amount of money it takes to live in a specific area.  If a bunch of welfare families move into an expensive area, the cost of living in that area will go down because the existence of a welfare family has a negative impact on property values which also affects the prices of goods and services.  Therefore if enough people welfare families move causing a negative impact on prices of a giving area, then a lot of individuals will have their benefits reduced or eliminated because the area is now more affordable to live in.  If for some reason the reverse happens with non-welfare families and the like move in raising property values and increasing the costs in the area, people who are on welfare already will have their benefits increased instead.

            Medicaid and unemployment will be generally unaffected.  Unemployment will more than likely be based on a separate set of criteria while means testing in combination with living expenses will ensure only those who need it get the medical coverage they need.  What those medical benefits are will vary from State to State as they add and subtract benefits based on need and affordability.  However it can be for certain that all will include some form of hospital coverage and more than likely recovery from traumatic accidents.  Unemployment may also vary in what benefits are provided.  My modification to unemployment would be limiting where the money can be spent to food, clothing under a certain price, medical bills, debt and utilities.  In this way, food stamps and unemployment can actually be combined; while the restrictions ensure people only spend money on the essentials.

  Dealing with those who slip through:
          For those that have an even harder time getting the treatments they need, the States can establish special clinics to care for the poor who are enrolled in their Medicaid system.  These clinics can be staffed by a combination of volunteers and paid specialists to treat the ailments of the poor.  The benefit of this is it is harder to game the system when those who are enrolled must receive treatment at a government sponsored clinic where their doctors can check if benefits beyond surgical and recovery are actually necessary.  For those with disabilities they could get a voucher with the same limitation on food clothing, medicine debt and utilities, which will allow for them or their care takers to spend on their needs only.  Also, special government run homes or even private ones sponsored by the government that are staffed by professionals can be used to take care of the disabled. 

 Conclusion:          
         This together fixes one of the biggest burdens of the Federal budget.  It provides a platform for innovation in the welfare sector of government as States copy from each other what works and gets rid of what doesn’t.  Stricter criteria from what it takes to get on welfare to what benefits you receive ensure that less people are able to game the system.  Additional, criteria can be placed on recipients like drug testing and welfare to work programs can be put into place to ensure our tax payer dollars are being well spent.  Welcome to the future of Medicaid and welfare benefits, customized State welfare.
see you tomorrow for part 3.

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