In the comments to this post, Joe Guarino mentions the N.C. Health Choice (NCHC) program, which provides health coverage for children in families whose incomes are too high to receive Medicaid, but who lack health insurance coverage. Eligibility is determined by income and family size. Families below 150% of the federal poverty level pay co-pays for prescription meds. Families below 200% of the poverty level also pay prescription co-pays, as well as co-payments for ER, physician and dental visits, and an enrollment fee.
In the example from my previous post (“Government Assistance & Minimum Wage”), a single mom working a full-time job currently would earn $12,792 annually, which makes her and her children eligible for Medicaid’s Families with Dependent Children Program (provided that they meet other program requirements.) She would see her income rise to $19,469 annually if the minimum wage increased to $9.36 per hour — above the limit for Medicaid. But her children would be eligible for NCHC ($19,469 is below 150% of the poverty level.) However, mom would no longer have health coverage.
(When I was doing eligibility assistance and case management, most of the families I worked with were very low-income and received Medicaid. I only remember helping one family enroll their child in NCHC, and I couldn’t remember the income limits. So thank you, Joe, for mentioning it.)
It’s a relief to hear that increasing the minimum wage to $9.36 per hour wouldn’t have as many negative unintended consequences as I feared. On the other hand, a person with two kids can work a full-time job earning $9.36 per hour and still qualify for a Section 8 housing voucher, and their children will also qualify for subsidized healthcare. So, that’s still depressing, although it’s an improvement.
I looked at several “living wage” and cost-of-living calculators on the web (here are a couple: #1, #2), and I found that the income needed (for the basics, not luxuries) for a family of three in our community is around $13-$14 per hour. That’s more than double our current minimum wage, and still a lot less than $9.36 per hour. But hey, you’ve got to start somewhere.
Next questions: 1.) I want to know more about the benefits of EITCs, and 2.) How will an increased minimum wage affect small business owners?
>> Read previous post on this topic: “Government Assistance & Minimum Wage”
