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Welfare Fraud Case Study

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The Maine welfare system is broken. In 2015, the Maine Department of Health and Human Services reported 1.2 million dollars in welfare fraud (“Department of Health and Human Services” 1); thousands of Maine taxpayer dollars a day were involved in fraudulent activities. Methods such as, falsification of finances and “water dumping” can be attributed to the welfare theft (1). In many cases, welfare recipients participate in these activities in order to further themselves financially or to purchase items that can not be purchased with an electronic benefit transfer card (EBT). Items that can not be purchase with an EBT card include: tobacco products, alcohol, lottery tickets, and tattoos (1). Often times, these outlawed items are used by …show more content…

Instead of addressing welfare fraud, the welfare system as a whole must be evaluated. The reformed welfare system would make it advantageous for welfare recipients to work low-income jobs in order to make more money. Similar to the current system, welfare recipients would be given a fixed amount of money that is determined by a number of environmental variables and a case manager. The money that is provided to the welfare recipient would be used to cover the costs of living such as, housing, groceries, and doctors appointments. In order to qualify for welfare, a recipient must prove to their case manager that they are employed or actively seeking employment and that the needs of their dependencies and themselves are met. The low-income job would then work in conjunction with the welfare programs. The low-income job would add to the welfare recipient’s income thereby making it beneficial to work a low-income job. While working the low-income job, they must continue to prove that they are working well, working to earn raises, or working to find a better paying job. In cases where these requirements are not met the individual would be disqualified to receive any welfare services. If a welfare recipient is promoted or gets a new job and makes a better wage their …show more content…

Individuals receiving welfare services will be enticed by the opportunity to get ahead financially, so they will use the system properly to reap the benefits. Failure to use the system properly will result in the individual no longer being able to receive welfare services. Similar legislation was signed into federal law during 1996 and “The law worked as intended, for the most part . . .” (Hill 1). The laws focus was to encourage Americans to work low income jobs, but a major side effect of the legislation was an “incentive for employers to pay less, especially for workers who have few skills and little education” (1). However, the low-income jobs are giving people on the job training, so they can advance and receive higher paying jobs; this is why case managers are in charge of ensuring that welfare recipients are continuing to prove that they are working to receive raises or other higher waged

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