Social welfare programs are often associated with the federal government, but they also illustrate the importance of state power in our system. Why do federally funded social welfare programs vary from state to state? Use one program (either means-tested or non-means tested) as an example.
Social welfare programs
Here is an example of how these factors can lead to variation in federally funded social welfare programs from state to state:
Program: Medicaid (a non-means-tested program)
State and federal cost sharing: The federal government provides matching funds to states for Medicaid, but the amount of matching funds required varies from state to state. For example, the federal government pays 90% of the cost of Medicaid for eligible individuals in low-income states, but only 50% of the cost in high-income states. This means that states with lower incomes have more financial resources to spend on Medicaid.
State eligibility criteria: States have some flexibility in setting eligibility criteria for Medicaid. For example, states can choose to expand Medicaid eligibility to all adults with incomes below 138% of the federal poverty level, or they can choose to keep eligibility more limited.
State program design: States also have some flexibility in designing their Medicaid programs. For example, states can choose which healthcare services to cover, and they can choose how to deliver those services. For example, some states choose to deliver Medicaid services through a managed care system, while others choose to deliver services through a fee-for-service system.
As a result of these factors, Medicaid programs vary significantly from state to state. For example, some states have expanded Medicaid eligibility to all low-income adults, while other states have not. Additionally, some states offer a wide range of healthcare services under Medicaid, while other states offer a more limited range of services.
Overall, federally funded social welfare programs vary from state to state because of a combination of factors, including state and federal cost sharing, state eligibility criteria, and state program design. This variation can lead to significant differences in the availability and quality of social welfare programs across the country.
Federally funded social welfare programs vary from state to state for a number of reasons, including:
- State and federal cost sharing: The federal government typically provides matching funds to states for social welfare programs, but the amount of matching funds required varies from program to program. This means that states have some flexibility in how much they spend on these programs.
- State eligibility criteria: Some federally funded social welfare programs allow states to set their own eligibility criteria. For example, states have some flexibility in setting income limits for means-tested programs such as Temporary Assistance for Needy Families (TANF).
- State program design: States also have some flexibility in designing federally funded social welfare programs. For example, states can choose how to deliver TANF benefits, such as through cash payments or job training programs