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Project Description

Under the new law (PRWORA) welfare benefits are time-limited and recipients are required to participate in work and work-related activities. Moreover, the new law effectively “de-links” Medicaid and welfare benefits- eligibility for Medicaid is no longer automatic for TANF recipients. One way in which states seek to encourage work is to divert individuals who are either job-ready or have other sources of income from becoming welfare recipients by offering them a one-time financial payment and/or job placement assistance as an alternative to enrollment in welfare.

Project duration: Sep 1997 - Dec 1998

Sites studied include Ohio, Montana, Missouri, Maryland, and Georgia

Sample Characteristics and Sites Studied

State diversion programs and activities in all 50 states with particular attention to selected case study states.

Recent Findings in Brief

08/01/98: Examination of State Diversion Programs and Activities Under Section 1115 AFDC Demonstration and TANF: Description and Assessment of State Approaches to Diversion Programs and Activities

Interim Descriptive/Analytic Findings:

The authors find that more than half of all states have implemented formal welfare diversion programs that provide families with a one-time lump-sum payment for expenses and/or require up-front job search before being allowed to apply for cash assistance. Their analysis indicates substantial variation among states with regard to program conditions and requirements. In particular, the study examines the possible effects of diversion on an individual’s access to Medicaid, focusing on whether or not diverted families are ever linked with Medicaid even though they do not apply for cash welfare. Finally, it identifies areas of need for further research in monitoring the impact of diversion on Medicaid receipt and information on strategies to ensure access for Medicaid eligibles.

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