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Missourinet

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You are here: Home / Archives for TANF

State to clamp down on where people spend welfare money

December 18, 2013 By Jessica Machetta

The State Auditor’s Office has looked at the state’s welfare system, and says some 400 people could be riding the state’s tax system without even living in Missouri. Auditor Tom Schweich also says it’s clear some recipients of state assistance are spending that money on alcohol, cigarettes, gambling, and adult entertainment.

“We looked at 817,000 transactions totaling $96 million for a one year period in fiscal year 2012,” Schweich said, “and the total percentage of questionable transactions we found was relatively low, but the dollar value was still over $700,000 people using electronic benefits transactions cards for out-of-state transactions for over 90 days, which makes it look like they’re not a Missouri resident, and we found over 16 hundred cases of people using EBT cards at inappropriate establishments such as liquor stores, tobacco stores, gambling locations, places like that.”

He says the fact that TANF and SNAP (Supplemental Nutrition Assistance Program) benefits exist to help children makes some of the locations where people are spending them inappropriate.

Schweich says new federal regulations mandate that Missouri tighten its regulations on electronic benefits transfers, and that the Department of Social Services is implementing a system that will better track where people are withdrawing and spending their welfare benefits.

The audit shows that out-of-state transactions totaled $3.4 million from about 9,300 cases. At least 366 of those cases showed welfare benefits were accessed exclusively for out-of-state purchases or withdrawals for more than 90 days. About 68 percent of those transactions happened in bordering states.

Schweich points to a couple of cases where people were spending all of their benefits for an extended period in farther away locations such as Texas, California, and the Virgin Islands.

“We had one person using their benefits in California for almost an entire year,” he said. “We had somebody who had spent 338 days in California and was still getting Missouri benefits.”

In June of this year, the Department of Social Services initiated a limited merchant awareness law that restricts usage of Temporary Aid for Needy Families (TANF) money in accordance with a state law passed earlier this year.

“For example,” the audits says, “five states prohibit TANF cash from being used for certain items like alcohol, seven states have disabled TANF EBT access at ATMs or terminals at casinos, and two states prohibit using the cards for alcohol by prohibiting non-SNAP authorized business to participate in the TANF EBT program.”

Schweich says the new system at Social Services should allow employees to better track welfare recipients who are using that money exclusively out-of-state for extended periods, and then will need to follow up with those recipients to determine if they are no longer a Missouri resident, in which case their benefits would be terminated.

He admits that the money in question is a very small percentage of the Department of Social Services program, but says because that program is so large, it adds up to a lot of money.

Schweich wouldn’t comment on his personal reaction to the audit’s findings, but House Speaker Tim Jones called the findings “shocking.”

“The information Auditor Schweich uncovered will be extremely useful to the House as we work to formulate our legislative priorities for the upcoming session,” Jones said. “The facts are simply shocking. More than $260,000 was spent at businesses like liquor stores, casinos, and smoke shops, in violation of current law. Additionally, nearly $129,000 was spent by people who had been out-of-state for more than 180 days, indicating they likely no longer live in Missouri yet were still using Missouri taxpayer dollars. Clearly, more must be done to prevent fraud and abuse in the TANF system, and we will make this a priority during the upcoming session.”

Filed Under: News, Politics / Govt Tagged With: food stamps, Missouri Department of Social Services, TANF, Welfare

Social Services welfare recipient shift scaled back (VIDEO)

April 25, 2013 By Mike Lear

A contract between the Department of Social Services that came under fire from House Republicans has been restructured.

Representatives Sue Allen (left) and Jay Barnes (right) join House Speaker Tim Jones (center) and other House Republicans in announcing changes in a DSS contract the caucus had concerns with.  (Photo courtesy; Tim Bommel, Missouri House Communications)

Representatives Sue Allen (left) and Jay Barnes (right) join House Speaker Tim Jones (center) and other House Republicans in announcing changes in a DSS contract the caucus had concerns with. (Photo courtesy; Tim Bommel, Missouri House Communications)

The contract with Boston-based Public Consulting Group outlined how it would look for people receiving state assistance that could be shifted to federal disability payments. Republicans said the original arrangement would have reached out to too many people, including children and those who could still work, and said it would have moved people off of welfare that requires recipients to actively look for jobs to a program where having a job could result in lowered benefits.

Representative Jay Barnes (R-Jefferson City) said documentation of the company’s proposed procedures raised concerns it would use aggressive tactics to get people to switch programs. He’s pleased with the new contract.

“For kids, who should not be in this process, they are no longer part of this contract, PCG will not be making cold calls to individuals, PCG will not be making any threats to those people already categorized as ‘disabled’ if they refuse to cooperate with this and PCG has agreed that they will have all phone calls recorded so that we can spot check what they’re doing.”

The new contract will limit the scope of the company’s search to people with disabilities and serious medical conditions.

The original contract would have also sought to move people whose transfer might have had to go to an appeals process because it would have been less clear the shift would be appropriate.

PCG will make $2,300 for every person moved off of Medicaid.

House Speaker Tim Jones (R-Eureka) commended Governor Jay Nixon and the Department for making these changes.

The situation came to light on a national radio program before PCG’s work began. Jones says it raises a question of whether such contracts need to be subject to legislative review earlier.

“There obviously needs to be some more oversight on these large-scale contracts that do affect thousands, if not millions, of Missourians.”

On the subject of oversight, Representative Sue Allen (R-Town and Country) says she told the Department’s representatives in a recent hearing of her Appropriations Committee she was surprised they didn’t bring the issue up.

“I do expect them to bring these issues to the committee and I had some anxt about that. That is an ongoing issue of trust … but they heard a very strong message and I think we got the good solution.”

See the House Republicans’ media conference below:

Filed Under: Health / Medicine, News Tagged With: Department of Social Services, Jay Barnes, Medicaid, Missouri House of Representatives, Sue Allen, TANF, Tim Jones, Welfare

House Committee digs into welfare contract

April 23, 2013 By Mike Lear

A state representative says he’s completely dissatisfied with a contract between the Department of Social Services and a Boston-based firm that he says would trap some Missourians permanently in a life of poverty.

Representative Jay Barnes (photo courtesy; Tim Bommel, Missouri House Communications)

Representative Jay Barnes (photo courtesy; Tim Bommel, Missouri House Communications)

The House Committee on Government Oversight and Accountability, chaired by Representative Jay Barnes (R-Jefferson City) has heard testimony on a contract the state has with Public Consulting Group to evaluate state public assistance recipients to see if they are eligible for federal disability programs. The company says it can save Missouri up to $80 million a year. The contract would pay PCG $2300 for every Missourian moved onto disability payments from the Temporary Assistance for Needy Families (TANF) program.

Barnes says unlike on TANF, where recipients must meet certain work requirements, people on the federal program are not likely to look for work because that would hurt their eligibility for federal benefits. He says that calls into question the morality of the contract.

“Should the State of Missouri be paying a private company be paying money for a private company to shift folks who are down on their luck into a program that will trap them in poverty, likely forever?”

Barnes says PCG is looking at three categories of recipients, one of which he agrees includes people whose medical records confirm their disability status and that they will never work again.

“The second two categories are people for whom PCG is being paid to build an administrative law court case to get these disability benefits.” He adds, many of those decisions would have to go to appeal to be finalized.

Social Services Department Deputy Director Brian Kinkade

Social Services Department Deputy Director Brian Kinkade testifies to the House Committee on Government Oversight and Accountability

Representative Todd Richardson (R-Poplar Bluff) argues the shifts from state to federal benefits will also pile on to a program the federal government can’t afford.

“You can call it revenue maximization or getting people onto the right program. At the end of the day, if we take the spin off of it, the state is spending money to put people onto a broke federal program.”

Social Services Deputy Director Brian Kinkade says his department and the contract deal with the laws as they are written.

“I think the question is whether they are eligible for the benefit under federal law, and if they are then they should receive it.”

Barnes says following Monday’s hearing, he isn’t sure what his next action will be.

Filed Under: News Tagged With: Brian Kinkade, TANF, Todd Richardson

House passes welfare reform legislation, advances food stamp card photo proposal

April 22, 2013 By Mike Lear

The state House has approved a bill its sponsor says will keep people from staying on public assistance programs for a long time.

Representative Casey Guernsey (photo courtesy; Tim Bommel, Missouri House Communications)

Representative Casey Guernsey (photo courtesy; Tim Bommel, Missouri House Communications)

Republican Casey Guernsey’s (R-Bethany) says the key provision in his bill would create a work program for public assistance recipients and requires recipients age 18 or older to have a high school diploma or equivalent, or get one within two years of beginning to receive benefits.

See the legislation, HB 343.

An amendment added to the bill also sets minimum requirements for the hours recipients must spend working, training for or looking for a job. Guernsey says bring the state in line with federal regulations.

“We don’t even know how far out of compliance we are. We didn’t find out until this year in the budget committee that we’re out of compliance and being fined to the tune of $30 million dollars … we don’t know how many millions of dollars we’re out of compliance between 2009 and now.”

Another provision would bar the use of electronic benefits cards in some businesses including liquor stores. Democrats argue that creates a hardship for people who live in areas where there are no grocery stores for great distances.

Guernsey responds, “I have counties in my old district that didn’t have a grocery store in the entire county … I understand what you’re talking about with the liquor store but I just don’t buy the argument when I’ve got counties in my district and surrounding districts that doesn’t have a grocery store in the entire county.”

The legislation has advanced to the state Senate.

See our earlier story on Guernsey’s bill being heard in committee.

Representative Keith English (photo courtesy; Tim Bommel, Missouri House Communications)

Representative Keith English (photo courtesy; Tim Bommel, Missouri House Communications)

Another bill that has received initial approval would ask the federal government to okay Missouri printing food stamp electronic benefit cards that include a photo of the food stamp recipient, to help deter fraud.

Opponents point out that there are many ways to commit food stamp fraud that the photos wouldn’t stop, but its sponsor, Representative Keith English (D-Florissant) says that’s OK.

“I think any time we can tighten the belt up like we did getting rid of food stamp dollar bills, we cut fraud that way, and I think this is one step closer to cutting more fraud out of there. We’re talking about hundreds of thousands of dollars.”

His legislation needs another favorable vote to advance to the Senate.

Filed Under: Legislature, News Tagged With: Casey Guernsey, food stamps, Missouri House of Representatives, TANF

Lawmakers weigh whether welfare reform bill would cost or save the state money

February 21, 2013 By Mike Lear

A Northwest Missouri representative has presented a welfare reform package aimed at fighting fraud and saving the state money.

Representative Casey Guernsey (photo courtesy; Tim Bommel, Missouri House Communications)

Representative Casey Guernsey (photo courtesy; Tim Bommel, Missouri House Communications)

The fiscal note on Representative Casey Guernsey’s (R-Bethany) legislation says its proposals could put the state in danger of losing more than $3.5 billion dollars in federal matching funds for Medicaid tied to covering populations and services as mandated by the federal government. It could also cost the state more than $4.8 million dollars from the General Revenue Fund.

Guernsey says significant fraud is common in the state’s welfare programs and is wasting taxpayer money. That includes federal dollars coming to Missouri.

He says his proposal is, “looking at fundamentally restructuring the entitlement mentality in this state, and that is certainly going to save money because there is a lot of money that we do not spend well within these programs.”

Former state senator Jim Lembke, now lobbying for United for Missouri, testified to a House Committee there are places in Medicaid and welfare programs where reform could save the state money.

Lembke says while still a senator he was told by the Missouri Hospital Association that there was up to 30 percent of waste, fraud and abuse in the state’s Medicaid program, equaling $2.8 billion dollars.

He says the state’s food stamp program totals about $1 billion dollars annually. “If there is 10 percent waste, fraud and abuse in that program that’s $100,000,000 a year … is it worth while, us having these conversations and looking at these programs and making sure that we’re being good stewards of the people’s money?”

See the proposal, HB 343

Guernsey says he began working on the issue when retail businesses in his district saw recipients of some state welfare programs abusing them and wanted something done about it. He criticizes the Department of Social Services’ investigators, saying they are ineffective.

“They, I think, do work much harder to create the illusion of doing work and pass off a lot of their work on the caseworkers than they do themselves.”

Guernsey’s bill would set into law how investigations should be conducted into reports of welfare fraud and their timeframe, and establish that the Department may fire a fraud investigator that doesn’t comply.

It would also add new eligibility requirements for welfare programs, including a requirement that all recipients of Temporary Assistance for Needy Families (TANF) prove all dependent children are enrolled in public school and attending regularly if eligible.  Representative Jill Schupp (D-Creve Coeur) says that could violate the Constitution.

She asks, “Are we saying that when I’ve reached the age of 17 and I have not graduated from school and I want to drop out but my mom receives TANF benefits that I’m not allowed to go to work?”

Guernsey tells Schupp he believes a person in that scenario could work to achieve a General Equivalency Diploma (GED). Schupp says she believes that could be holding that person to a different standard than other 17 year-olds.

The bill would also require all recipients of TANF, food stamps, child care assistance, SNAP or similar programs and are 18 or older to have a high school diploma or GED.

Another provision would limit foods that can be bought with the Supplemental Nutrition Assistance Program (SNAP) to only those approved under the Women, Infants and Children (WIC) program. Missouri Retailers Association President David Overfelt testifies Missouri can’t impose such a limit.

“We do not have the authority to do this. We’d risk losing the whole SNAP program without trying to get a waiver … a waiver that’s never been granted.”

Guernsey says the federal government would benefit from considering a waiver for his proposal.

“They’re never going to reform a broken system unless they’re presented with an option that is better than the current one. There are no restrictions [on SNAP] right now. That’s completely unfair to the taxpayers.”

Other provisions in the bill would require the Department to set rules and regulations to ensure compliance with federal law while accounting for individuals and households with special needs and making sure all eligible members of a household can access benefits. It would have the Department seek a federal waiver to allow photo identification for food stamps, with photo I.D. cards to be issued by the Department to each eligible household member aged 16 and older, then require all retailers accepting electronic benefit cards to verify identities using the photos.

It would also specify that anyone who commits welfare fraud permanently loses eligibility, and require TANF recipients to make at least 20 job contacts a week while on the program or allow them to work as unpaid interns for a governmental entity and make only 10 contacts.

The committee has not voted on Guernsey’s legislation.

Filed Under: Legislature, News Tagged With: Casey Guernsey, food stamps, Jill Schupp, Missouri Department of Social Services, Missouri House of Representatives, TANF, Welfare



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