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PEMD-85-4 1 (1985-07-02)

handle is hein.gao/gaobabfed0001 and id is 1 raw text is: - 3\LAx-Q R EPORT BY THE U. S. General Accounting Office An Evaluation Of The 1981 AFDC Changes: Final Report The Omnibus Budget Reconciliation Act of 1981 (OBRA) made major changes in the Aid to Families with Dependent Children (AFDC) program that resulted in the loss of AFDC benefits for many working recipients and reduced benefits for others. GAO estimates that OBRA decreased the national monthly caseload by 442,000 cases. In the short run, monthly outlays were reduced by $93 million. In-depth evaluations of OBRA's effects on AFDC families in five sites found no strong evidence that the OBRA changes made welfare more attractive than employed self-sufficiency. However, 1-1/2 to 2 years later, those who had lost AFDC in these sites experienced substantial losses in real income, and many were without health insurance after their loss of Medicaid. In response to a previous report from this study, program changes enacted in 1984 eased eligibility requirements and extended Medicaid coverage for those who lose AFDC. GAO's final analyses suggest that --wage levels and employment opportunities are as important as program incentives for enabling recipients to gain independence from welfare, --many families will probably be without health insurance after the Medicaid extension expires, and --federal changes tied to state-set income limits will continue to affect families with similar economic situations differently, according to where they reside. ~U GAO/PEMO-85-4 ok JULY 2. 1985 7< o .x

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