Recent Research
JUNE 2, 2010 | Testimony by ELIZABETH STELLE
Welfare Fraud and Abuse
Testimony of Elizabeth Stelle to the Pennsylvania House Republican Policy Committee
Welfare advocates justify spending increases by emphasizing that they're necessary to provide for Pennsylvania's vulnerable residents, including children, older adults, and the disabled. However, we must consider the efficiency and the outcomes of such programs. If resources are being squandered on those who don't need them and are defraudin
SEPTEMBER 30, 2009 | Commentary by ABHILASH SAMUEL
Re-examine Public Welfare Spending
Pennsylvania has, as of this writing, gone 90 days without a budget, longer than any other state. The impasse has been driven by Gov. Rendell's demand for higher spending and new taxes. Though Rendell argues that the budget has been "cut to the bone," the work of a leading member of his own party, Auditor General Jack Wagner, proves
AUGUST 21, 2007 | Commentary by JESSICA RUNK
Public Welfare Needs Assistance
Although the 2007-2008 budget controversy is fading from the limelight, the exorbitant spending it authorizes cannot be overlooked. One of the largest portions of state spending is public welfare, which accounts for 36% of the budget. Since Governor Rendell took office in 2003, General Fund spending on public welfare increased 48
Recent Blog Posts
AUGUST 2, 2010
What Happens to PA Budget without FMAP Money
Gov. Rendell is supposed to meet with lawmakers today to discuss options if Congress doesn't approve the $850 million in federal FMAP funds.
Pete DeCoursey (subscription) breaks down the effect on welfare spending, which I try to summarize in fewer words, using a chart breaks down the spending.
|
Since 2008-09 |
With FMAP Funding |
Without |
|
PA Welfare Spending Increase |
$2,400 |
$2,400 |
|
State Sources |
-$750 |
$100 |
|
Federal Sources |
$3,150 |
$2,300 |
|
(in millions) |
||
The bottom line is, even if Pennsylvania does not get the federal Medicaid money, the cuts have to come from elsewhere. The state can't change eligibility and continue to receive stimulus funds, because of the "maintenance of effort" requirement.
posted by NATHAN BENEFIELD | 09:47 AM | 0 comment
JULY 28, 2010
How to Reduce Welfare Fraud
Following Matt Brouillette's commentary on whether Tom Corbett (should he win) can balance the budget and keep his 'no tax' pledge, we got an email from a reader wondering how we can realize savings in Medicaid and welfare, just because there is fraud.
To start with, check out Elizabeth Stelle's testimony on welfare fraud and abuse for solutions, including administrative action (the Rendell Administration cut investigations into welfare fraud by 50%, largely simply to boost the number of "people served"), whistleblower protection laws, and enabling recovery audits. In fact, the entire hearing is quite informative.
The House GOP includes reducing welfare fraud in their Solutions for PA. The highlights of their legislation on welfare reform can be found here. In addition to these Rep. Bryan Cutler has legislation (HB 1637 and HB 1638) that would impose stricter requirements for income verification.
The Senate Cost-Savings Commission outlined their own series of reforms in the Department of Public Welfare. Their report - which had the unanimous support of the members, including the self-proclaimed "most progressive member of the Pennsylvania Senate," Daylin Leach - estimated cost savings at robust $380 million per year.
So yes, there are policies to reduce welfare/Medicaid fraud, and there is a lot of support for these reforms.
posted by NATHAN BENEFIELD | 02:39 PM | 0 comment
JUNE 18, 2010
Video: Welfare Fraud
CF Research Associate Elizabeth Stelle gives testimony on welfare fraud and abuse in Pennsylvania in this latest video, courtesy the PA House Republican Policy Committee.
You can read Elizabeth's full testimony here.
posted by NATHAN BENEFIELD | 09:35 AM | 0 comment

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