After finding 3,544 lottery winners still on welfare, the Michigan Department of Human Services, lawmakers are under pressure to get rid of a loophole that allows most to keep winnings. Even with a new law in place designed to intercept lottery jackpots, welfare and food stamps recipients are still legally holding on to their prizes, citing an April 16 Detroit news report.
Lottery winners’ welfare benefits are under scrutiny, but with current laws in place, many are still sliding through the cracks and keeping jackpot prizes.
Maura Corrigan, DHS Director expressed concerns over the lax in laws that fails to address the growing crisis.
Of the thousands of lottery winners on welfare in Michigan last year, only 565 or 16 percent were legally removed under the current law.
The trouble is, certain language contained in legislation adopted last year still allows lawful retention of food stamps and welfare benefits.
In one example, a man who won a $125,000 Michigan lottery jackpot lost his food stamps, but his daughters still continued to receive $400 each. Apparently, they said meals are all eaten separately, which qualifies them for continued disbursement.
And still, in another case a woman won $300,000 playing lotto and was allowed to continuing receiving state Medicaid until her baby was born.
While Corrigan believes there is widespread misuse of the system, a Democratic lawmaker thinks otherwise.
“I just think Director Corrigan is more passionate about kicking people off the system than preventing fraud,” said Rep. Rashida Tlaib, adding that the DHS’s actions appeared to be “punitive.”
Overall, many believe the new legislation adopted last year is fair, but agree more asset-based testing is not a bad idea.
Source Article from http://www.examiner.com/article/lottery-winners-welfare-michigan-lottery-winners-still-on-welfare
Views: 0