Why Many Americans Living in Poverty Are Unable to Get Public Aid

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Every year, the number of seniors and others who qualify for extra help is rising rapidly. Many of them are in dire straights and urgently need aid programs, but cannot get the help they need even though they apply for it. It appears that the requirements on the applications are designed to prevent large numbers of them from obtaining it.

While many seniors are unaware of these government assistance programs that offer immediate financial assistance, many have learned about them, but still cannot get the help needed. Even though they should qualify, many are being turned away.

As of September 2023, CNBC reports that 62 percent of U.S. adults live paycheck to paycheck. It is even higher for consumers living alone, PYMNTs says, and as of October 2023, 42 percent of people earning more than $100,000 are living the same way.

The primary qualification for help from federal assistance programs is being at or below the poverty level. In 2023, the poverty level for singles is $14,580; for families of two it is $19,720; and for families of four, it is $30,000.

Medicaid Availability

When the Affordable Care Act passed, the plans were to make health care available to people whose incomes were at or less than 138 percent of the poverty level. HealthInsurance reports that in the remaining nine states that have not yet expanded Medicaid, many people 65 and older cannot qualify for Medicaid because of the stricter rules.

The federal government pays up to 90 percent of the bill, including in those states where Medicaid has already been expanded. States have little to lose by allowing Medicaid expansion.

Where Medicaid has not yet been expanded, people living in poverty at the 100 percent mark are generally turned away from getting medical financial assistance. In the nine states that have not expanded Medicare, this includes about 1.9 million people, making it only available to the disabled, pregnant women, low-income children, and parents with very low incomes ($4,475 annual income in Alabama, for example, in 2023).

A Lot of Money Is Available

The government has made money available to help millions of seniors and others in need through various aid programs. The National Council on Aging reveals that there is $30 billion worth of programs that remain unused by many seniors who would qualify if they applied. The programs would give them medical care, food, drugs, financial assistance for single moms, and other help.

Outdated Savings Rule Disqualifies Many

When the Supplemental Security Income (SSI) became an official government program in 1972, a limit was set on how much applicants could have before being accepted. The amount was low at that time, but has since been raised in 1984, to $2,000 for individuals and $3,000 for married couples. MarketWatch reveals that if inflation is accounted for, those numbers today would be $10,840 for singles and $16,260 for couples.

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Congress and other groups are attempting to change the low-savings problem. As it is, the current limits on savings have effectually ruled out almost any serious savings program for seniors, making them perpetually dependent on government programs and preventing them from saving for retirement.

The new bill, the SSI Savings Penalty Elimination Act, was revealed in September 2023 by the U.S. Senate Committee on Finance. It has considerable support. One of the bill’s creators is Ron Wyden (D-Or.), currently the chairman of the Senate Finance Committee. This committee oversees the Social Security Administration.

Poverty and Poor Health Often Go Together

According to a U.S. Census survey taken in 2022, FeedingAmerica reported that as many as 38 million Americans were living below the poverty line. Some people with higher incomes also faced food insecurities. A lack of proper food can soon lead to poor health.

People living below the poverty line often cannot afford healthy food regularly. Getting quality medical care is also financially out of reach for many people in this category, which means they are more likely to have a higher mortality rate. According to Debt, the richest 1 percent of people in America live about 14.6 years longer than the poorest men and 10.1 years longer than the poorest women.

Many People Are Unaware That Help Is Available

The U.S. government provides help for millions that need help paying bills, including those that need low-income home energy assistance. Relief is available in many forms, including food stamps (now called SNAP), nutritional help for mothers and children (WIC), Low-Income Home Energy Assistance, and Head Start—a program for child development to help ready children up to five years old to enter school, Medicare prescription drug coverage, Legal Services, Job Corps, and more.

These programs, and others to help pay bills and provide phone and Internet services, could be life-changing for millions. Some people refuse to get outside help from anyone, and many have no idea how to change their situation. Although government help is widely advertised, more must be done to inform those eligible for these services.

If the proposed bill does not pass, it seems that those living in poverty are practically doomed to stay there. Because of their low income, many have little education, few job skills, and no savings. As long as they continue to get government help, they cannot grow their savings, and once they get a good-paying job, the government help stops.

People living below the poverty level can get assistance to change their situation. If they qualify, it would improve their quality of life. Apart from help from the federal government, relief is also often available through various community agencies. If one agency cannot help, they can usually direct you to others who can give you the assistance you need.

The Epoch Times copyright © 2023. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.