The Role of the Courts in Securing Welfare Rights and ...

Welfare Law CenterA. Food Stamps and MedicaidSurprising declines in the Medicaid and Food Stamp caseloads are one of the distressingside-effects of TANF implementation. TANF caseloads have also declined dramatically, andthese are generally attributed to both a strong economy as well as major changes in state policiesthat discourage or prevent people from seeking or remaining on assistance. However, the FoodStamp and Medicaid declines have caused alarm because these programs which, unlike TANF,are generally governed by federal rules, provide broader eligibility than TANF. They are widelyregarded as important income supplements for low income households regardless of whether theyreceive cash assistance. For example, Food Stamps and Medicaid financial eligibility limits arehigher; conduct-related requirements, including work rules, and sanction rules are not as onerousas many states’ TANF policies; and strong federal rules protect the right to apply and receiveprompt eligibility determinations. In addition, recent changes in federal Medicaid law, includingthe elimination of the general requirement that linked Medicaid eligibility to AFDC eligibility andexpansion of eligibility for children suggest that Medicaid eligibility should be expanding.The state welfare agencies that administer cash assistance generally also administerMedicaid and Food Stamps, and there is growing recognition that strict new TANF policies andpractices and the philosophy of discouraging public assistance receipt have spilled over to theagencies’ administration of Food Stamps and Medicaid. As a result, many families are beingimproperly denied or terminated from Food Stamps or Medicaid when they are denied orterminated from TANF. 115These issues and the important role of litigation on behalf of needy families are bestillustrated by recent litigation to protect needy individuals’ rights under federal law to apply forMedicaid and Food Stamps and two cases challenging Food Stamp and Medicaid sanctions.May 1999⋅ 44 ⋅