Skip to main content
University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Day: November 18, 2011

State Unemployment Insurance Debt

Businesses penalized for state unemployment insurance debt, By Pamela M. Prah, November 18, 2011, Stateline.org: “Employers in 20 states will have to shell out more in taxes next year as a penalty for the states not paying back federal loans that kept unemployment programs afloat during the recession. Altogether, states still owe $37.6 billion to the feds that they borrowed when their unemployment insurance trust funds sank to zero. Most states have dealt with the problem by raising state payroll taxes on employers, making benefits to workers less generous; or a combination of the two. A handful, though, have opted to issue bonds. Idaho did it earlier this year, and Texas did it last year. And just this month, Illinois lawmakers approved legislation allowing the state to issue bonds to pay back the $2 billion the state owes the federal government for unemployment relief. Governor Pat Quinn has applauded the UI package and has indicated he will sign the measure. The state figures it will get an interest rate lower than the 4 percent it would have to pay the federal government, saving the state and businesses millions of dollars…”

Medicaid Program – Utah

  • State drafting a waiver to provide health insurance benefits in exchange for community service, By Wendy Leonard, November 17, 2011, Deseret News: “Community service in exchange for health insurance? It’s an idea that the Utah Department of Health is exploring to allow an otherwise economically challenged population to give back to their community. Based on income, some recipients of the state’s Medicaid health insurance benefit share in the cost by paying modest co-pays and premiums. A pilot program would offer the service option in exchange for health benefits for those who can’t afford to contribute toward cost of Medicaid. But the proposed program would first need approval by federal Centers for Medicare and Medicaid Services. UDOH has until the first of the year to submit a waiver to CMS that could change how Medicaid operates in Utah and allow the program…”
  • Utahns: Mandated charity work for Medicaid is ‘demeaning’, By Kirsten Stewart, November 17, 2011, Salt Lake Tribune: “Annette Wright minces no words when asked about the prospect of having to do community service for her Medicaid coverage. It’s ‘crazy’ and ‘demeaning,’ because it presumes people on the low-income health care program don’t already give back, said the 54-year-old career actress. ‘Volunteering should come from the heart. It’s something you do because you want to, not because you have to. What they’re doing is more like coercion.’ Such was the prevailing sentiment Thursday at a public hearing on an experiment that, if approved by the federal government, would require fewer than 100 Medicaid recipients to do charity work in exchange for health insurance. The pilot program is meant to build a sense of community, not punish the poor, said its architect, Rep. Ronda Menlove, R-Garland…”

Welfare Overpayment Collections – Ohio

Welfare roundup reaches way back to collect overpayments, By Catherine Candisky, November 16, 2011, Columbus Dispatch: “The state is reaching back more than a quarter of a century to collect millions in nonfraudulent overpayments to former welfare recipients, most the result of administrative errors by government workers. The state Department of Job and Family Services said an estimated 14,000 notices have been sent in an effort to collect about $18 million in welfare overpayments from before 2001. An estimated 8,000 Ohioans owe an additional $8.4 million in food-stamp overpayments that are more than 10 years old…”