Poverty Policy IssuesBY: CHEYENNE SHORT & SHELLY ST. HILAIRE

History of Poverty in America

Industrialization brought a new kind of poverty to America in the 1820’s.

These changes created a new industrial working class extremely vulnerable to poverty.

New York State bans children from poorhouses with the Children’s Law of 1875.

Poverty Rates blasted through the roof during the great depression and people were left with no money, no food, and no shelter.

Come the early 1960’s but poverty rates increased again when welfare wasn’t available to two parent families in the 70’s, and in the early 80’s food stamps and welfare cut their program by about $20 billion dollars.

Late 80’s Congress tried to pass JOBS (Job opportunities and Basic Skills) Act to provide assistance for the poor to transition out of poverty. But unfortunately in 1996 $27 million dollars was again cut from the food stamps program.

9 million in poverty in 2010. America’s Government assistance has kept 40 million people out of poverty, close to 20 million from Social Security alone.

In 2013, 45.3 million people were in poverty.

This map shows that

almost half of our

country is living in

severe poverty.

Vermont being one

of the more “lucky”

states. More

populated states

suffer from much

severer cases of

poverty, especially

around big cities.

How Poverty is Measured

Poverty guidelines are issued by the Dept. of Health and Human Services. This department uses this to help determine what eligibility they will get for federal programs. The poverty threshold is set by the Census Bureau and are used to measure poverty level.

Poverty Thresholds is what the Census Bureau uses to determine a family or persons poverty status.

Poverty Measure Concepts Official and Supplemental

Official Poverty

Measure

Supplemental Poverty Measure

Measurement Units Families and unrelated

individuals

All related individuals that live at same

address, including any coresident

unrelated children who are cared for by

the family (such as foster children) and

any cohabiters and their relatives

Poverty Threshold Three times the cost of a

minimum food diet in 1963

The 33rd percentile of expenditures on

food, clothing, shelter, and utilities of

consumer units with exactly two children

multiplies by 1.2

Threshold

Adjustments

Vary by family size,

composition, and age of

householder

Geographic adjustments for differences

in housing costs by tenure and a three

parameter equivalence scale for family

size and composition

Updating Thresholds

Consumer Price index: all

items

Five year moving average of

expenditures on food, clothing, shelter

and utilities

Resource Measure Gross before-tax cash

income

Sum of cash income, plus noncash

benefits that families can use to meet

their needs for food, clothing, shelter,

and utilities, minus taxes (or plus tax

credits), minus work expenses, minus out-

of-pocket medical expenses and child

support paid to another household

Measure of Need

Poverty Thresholds Dollar amount used to determine poverty status

48 possible thresholds, each member of family is assigned one

Thresholds vary according to: Size of family and age of members

The same threshold is used in the entire U.S. The threshold is updated annually

for the inflation by the Consumer Price Index for All Urban Consumers

People who CANNOT be determined are:

• Unrelated individuals under age 15

• Prisoners

• Military barrack

• Homeless

Agency of Human Services

The services they provide:

Helping families get setup with Healthcare such as Medicaid and Health Connect.

Child care

Protection against child abuse-Support for addiction of youth and adults

Promotes health and prevention

Home and nursing home assistance

Helping the disabled to have greater independence

Support victims and rehabilitation offenders

Other Specific Agencies

Mental health agencies for adult and youth

Community Action Agencies: This is an agency of nonprofit and public organizations that were established under

the Economic Opportunity Act of 1964 to fight America’s war on poverty.

Area Agencies of Aging: Focuses on providing services to the elderly such as: meals on wheels, transportation to

and from appointments. Also to provide rides to activities or shopping. Employment services, senior centers, adult

daycare or long term care

Home Health Agencies: provides care for all ages with acute or long term illness

Parent Child Agencies: provide home visits and support services to families with children.

Ratio of Income to Poverty A family of five members: two children, mother, father and great-aunt.

Their threshold was $28,498 in 2013. Equation being: [xls-48k]

Suppose the members’ incomes in 2013 were

• Mother $10,000

• Father $9,000

• Great-aunt $10,000

• First Child 0

• Second Child 0

Total Family Income $29,000

Take the total income with the family threshold: Income. Threshold-$29,000/$28,498 = 1.02

Since the income was greater than their threshold, the family is not, “in poverty” according to the official definition.

The measurement is the 48 contiguous states and D.C.

Alaska and Hawaii have their own poverty guidelines.

Health Insurance in America

Medicaid: A health insurance provided in many states to cover low income people such as children or people with disabilities. The services that are covered are preventative, well child visits, vaccinations, hospital care, and medications.

Medicare: A health insurance provided by the government for people who are 65 and older or have disabilities, or end stage renal disease. This insurance covers doctor, hospital, home health, hospice, skilled nursing and some have prescription coverage.

Medicare: A health insurance provided by the government for people who are 65 and older or have disabilities, or end stage renal disease. This insurance covers doctor, hospital, home health, hospice, skilled nursing and some have prescription coverage.

COBRA: An insurance you can get in most cases to cover you if you leave your job. This is insurance that you pay for to cover temporarily while you get other insurance.

CHIP: A health insurance for children. This is a free or low cost health insurance for low income children.

Affordable Care Act A law passed in March, 2010, that gives all Americans the right to health care coverage and choice of plans that are

affordable.

This law mandates that all children under the age of 19 years of age have coverage.

Until age 26 years you can remain on your parent’s insurance plan.

You have the right to appeal a decision of denial of coverage to be reconsidered.

There is no lifetime limits on healthcare plans anymore

Insurance companies must justify increases publically.

Most of what you pay is required to be spent on the healthcare not the administrative costs

No cost preventative care for all

The right to choose your primary care doctor

You can receive care from an outside emergency facility

15 million Americans have enrolled that were not covered before by health insurance as of April 2014.

Promise Zones

2013, President Obama announced that he would title 20 Promise Zones.

Urban, rural, and tribal communities where the Administration would partner with local leaders to create jobs, increase economic activity, improve educational opportunities, and reduce violent crime.

On January 9, 2014, the first urban, rural, and tribal Promise Zones were announced

They are located in: San Antonio, Los Angeles, Philadelphia, Southeastern Kentucky, and the Choctaw Nation of Oklahoma.

The federal government will partner to help the Promise Zones access the resources and expertise they need.

To date, there are twelve federal agencies working in close collaboration to provide resources and expertise to urban, rural, and tribal Promise Zones.

Wealth Inequality in America- This video shows just

how our wealth in America is distributed from person to

person, Showing just how severe the problem with

poverty really is.

https://www.youtube.com/watch?v=QPKKQnijnsM

Sources: U.S. Census Bureau, How the Census Bureau Measures Poverty, (HTML)

(http://www.census.gov/hhes/www/poverty/about/overview/measure.html) Accessed 7/9/2013

U.S. Dept. of Health and Human Services, What are the Differences between the Poverty Guidelines and the Poverty Thresholds? HTML, (http://aspe.hhs.gov/poverty/faq.cfm))

U.S. Census Bureau, “How does the U.S. Census Bureau define ratio of income to poverty? (HTML, (http://ask.census.gov/faq.php?id+5000&faqld=275)) Accessed 7/9/2013

http://poverty.ucdavis.edu/faq/how-poverty-measured-unites-states

http://www.hhs.gov/healthcare/rights/index.html

Content last reviewed on October 21, 2014

http://www.usa.gov/Citizen/Topics/Health/HealthInsurance.shtml

http://obamacarefacts.com/insurance-exchange/vermont-health-insurance-exchange.php

"Promise Zone." Promise Zone. U.S Department of Housing and Urban Development, n.d. Web. 25 Oct. 2014.

www.cvaa.org

http://humanservices.vermont.gov/resources

http://humanservices.vermont.gov/departments