How the government keeps the poor in their place

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Wizbang:

How the government keeps the poor in their place

 

March 12, 2013 | Filed under Barack Obama,Big government,Health Care,Obamacare | Posted by Michael Laprarie

 

We often hear conservatives speak of the poverty trap created by the myriad of regulations surrounding assistance to the poor. Here is a perfect – and tragic – example of such a trap.

 

I was tipped off to this particularly outrageous bit of government rulemaking by an article at the Patheos blog: “Medicaid Burn: Spend Down What?“

 

Disability is not a lot of money, there is no need for a savings account to hold excess income. Disability teaches humility and frugality. The Social Security Administration attorney put me on permanent disability and approved my Medicaid in the autumn of 2012. I received medical benefits for about 90 days. And then in January 2013 my world radically changed…the government changed the Medicaid rules.

I ran the numbers that the DHS indicated as my deductible amount: my Spend Down deductible for medical expenses must be 75% of my disability check (that’s right 75%) before I will be reimbursed. If it’s, say, 72%…oops, so sorry, you’re not getting any medical reimbursement and you’re out that amount to pay for your living expenses.

So, let’s imagine my SSA monthly income is on the higher end at $1000 a month. This must pay for mortgage, utilities, food, clothing, laundry soap, and, well, all other personal hygiene stuff. And now imagine my medical and prescription expenses are at the low end at $720 for the month. That is only 72%, three points below my required 75% Spend Down deductible. Do the numbers ($1000 SSA income – $720 un-reimbursable medical). That leaves me with $280 per month to pay my mortgage, utilities, and groceries. Oh, and DHS added to my income my qualifying amount of $20 a month in food assistance. $20 a month for food