Friday, May 20, 2016

Article: How Medicaid Forces Families to Stay Poor

http://www.vox.com/2014/12/9/7319477/medicaid-disability

This is the story of a family from California, but all Medicaid programs in all states are means-tested, which is to say, you can't have coverage if you make over a certain amount per month, or have a certain amount in assets.   This makes sense in theory, since after a certain amount of income and assets, you should have insurance through your job or at least be able to afford your own plan privately.  Unfortunately, in present times that is often not possible.  Insurance has gotten more and more expensive, and fewer and fewer jobs are required to provide it.  In addition, the requirements for Medicaid haven't scaled much with inflation over the years. 

With the mandate for health insurance, people are opting for catastrophic coverage only, or as cheap of insurance as they can get.  If you consider the point of health insurance- to make preventative care accessible and affordable and a protection against huge medical expenses like Marcella's in the story- this makes no sense.  Some people, like myself, make so little money anyway that we qualify for Medicaid without having to jump through any income-related hoops.  But if I were to get a higher paying job, or somehow make it big in the autism-speaking world, my income would be carefully scrutinized, the same as Brian's. 

The article comments: "American social assistance programs are stingy and difficult to access because of an age-old suspicion of the poor. They are designed to be less attractive than work. One problem is that they are so miserly as to be impossible to live on."  It also points out that the disabled population is folded into "the poor" population, despite having very different needs.  Thus making the disabled "the poor" as well as disabled.  In the article, Marcella needed a wheelchair-capable van to get anywhere, but with the assets and income limit, making payments on one was very difficult. 

That's immediate thinking.  The article also details, then summarizes, their future prospects: "In sum, they are barred from doing many of the things middle-class families are constantly advised to do: Save for retirement. Save for emergencies. Take advantage of tax-free college savings plans. Just $3,150 in total assets — that's it."  In addition, their child will inherit nothing when they die- the state will take everything as reimbursement for the Medicaid expenses. 

Does this system seem hilariously flawed to you yet?  

1 comment:

  1. I totally agree with you. The system seems be so messed up when it comes to helping people with lower income. It becomes a vicious cycle for people which makes them stay poor. I really hope this changes in the near future because I don’t think the system is set up right.

    Jason Hayes @ DECORM

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