Loopholes allow some Michigan lottery winners to stay on welfare

Apr 16, 2013, 8:18 am (33 comments)

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LANSING, Mich. — A Michigan agency has removed more than 500 lottery winners from certain welfare programs because of a new state law that cross-references winners with recipients of some types of aid.

But the Department of Human Services says many more welfare cases could be ended if what it calls "loopholes" were closed, or if laws were altered or expanded.

The Department of Human Services on Monday issued a report that covers findings from April through December 2012.

It relates to a law signed last April that requires the state to match a list of those who win $1,000 or more in the lottery with current DHS assistance recipients.

Certain programs — including food assistance, cash assistance and some types of Medicaid programs — have established asset limits and testing of those assets.

But other welfare programs don't have asset testing — including certain child development and care programs, along with some types of Medicaid programs.
The Department of Human Services says that more than 2,000 cases involving lottery winners or other members of their household remain open because certain welfare benefits are not covered by asset tests.

"It's inconceivable that this is what the legislature had in mind when passing those laws in 2012," Maura Corrigan, Michigan's DHS director, said in a statement. "With the match system, we can now identify substantial winnings, but the loopholes that allow lottery winners to continue to collect various benefits need to be closed, through amending state and federal law and policy."

DHS officials said data indicates nearly 14 percent of all lottery winners are either welfare recipients themselves or reside in a household with welfare recipients. The report said 3,544 lottery winners identified as welfare recipients or residing with recipients between April 2012 and December 2012 accounted for more than $24 million in lottery winnings, an average of $6,800 per case.

A press release Monday from DHS said it "will advocate remedies" to make sure benefits from taxpayer-supported programs go to people who are "truly in need."

From the DHS statement: "To that end, DHS will seek changes in federal laws and policy where persons who 'purchase and prepare food separately' are considered distinct groups even though they reside in the same home, thus allowing a lottery winner to have an individual case isolated from other household members."

The change in Michigan law was sparked in part by news that a Bay County man continued to receive food assistance after winning $2 million in the "Make Me Rich!" Lottery game in 2010.

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Comments

billionaire2bee

I thought Michigan was a welfare to work state...Im wondering if they could take the winnings from the players who are on welfare or a percentage of the winnings to payback some or all of the received welfare??

dallascowboyfan's avatardallascowboyfan

WTG...."A Michigan agency has removed more than 500 lottery winners from certain welfare programs because of a new state law that cross-references winners with recipients of some types of aid."Thumbs Up

Now they just need to amend state laws to apply to ALL benefits.

ShowMeTheMoney$'s avatarShowMeTheMoney$

It's a shame the welfare recipients don't do the right thing and get off the program themselves if they win the lottery.  I guess it's human nature.  People are greedy and want money for nothing.

noise-gate

Quote: Originally posted by ShowMeTheMoney$ on Apr 16, 2013

It's a shame the welfare recipients don't do the right thing and get off the program themselves if they win the lottery.  I guess it's human nature.  People are greedy and want money for nothing.

If one is on Welfare and they win $1000.00 does that you have to get off the program? It would seem that is what the hubbub is all about. A thousand dollars does not get you far in this society.
Now if one is a multi millionaire- absolutely you ought to be kicked off welfare.

billionaire2bee

Quote: Originally posted by noise-gate on Apr 16, 2013

If one is on Welfare and they win $1000.00 does that you have to get off the program? It would seem that is what the hubbub is all about. A thousand dollars does not get you far in this society.
Now if one is a multi millionaire- absolutely you ought to be kicked off welfare.

That's why I said just make them pay some and or all of it back

noise-gate

Quote: Originally posted by billionaire2bee on Apr 16, 2013

That's why I said just make them pay some and or all of it back

The reason  many are on welfare is because they trying to make ends meet.For those truly on welfare because of hardships- l can only imagine having an extra grand to cover some expenses does not equate to being loaded.
If you were living on the streets and figured out that on a daily basis you made $60.00 Mr  billion- if you somehow ended up with $100.00 at the end of the day- would you give some stranger back $40.00 the next day or say" lm only collecting $20.00 today and then lm done cause l have reached my max?"
Don't answer that- l know what your answer would be.

ShowMeTheMoney$'s avatarShowMeTheMoney$

Quote: Originally posted by noise-gate on Apr 16, 2013

If one is on Welfare and they win $1000.00 does that you have to get off the program? It would seem that is what the hubbub is all about. A thousand dollars does not get you far in this society.
Now if one is a multi millionaire- absolutely you ought to be kicked off welfare.

I Agree! 

Small jackpots really don't help these people.  But, if you won $100,000 or more (and are still on welfare)....SHAME ON YOU!!!! No No

Stack47

"DHS officials said data indicates nearly 14 percent of all lottery winners are either welfare recipients themselves or reside in a household with welfare recipients."

I'm assuming this means prizes over $600 because there is no paper work to accurately identify those winning smaller prizes.

"A press release Monday from DHS said it "will advocate remedies" to make sure benefits from taxpayer-supported programs go to people who are "truly in need."

That's going to be difficult because it was determined they were "truly in need" when the benefit was paid and after the lottery prize is spent, they could be "truly in need" again. On the other hand because they had enough money left over to buy lottery tickets, they were overpaid in the first place.

When Dateline NBC ran the story on store owners, their relatives, and/or employees winning multiple lottery prizes, it looked to me like the winning tickets were bought by other players for maybe 50 cents on the dollar or less. If the DHS closes all the loop holes, the percentage of store owners, their relatives, and/or employees winning $600 plus prizes will rise because the welfare recipients will sell their winning tickets to them and create a new loop hole.

Original Bey's avatarOriginal Bey

Imagine a welfare recipient winning a large jackpot and his/her first check goes to the state as a reimbursement for all funds received over the time on the program. Wow! Can you see the headlines? Side by side photos of the winner with the lotto check and the other with the oversize reimbursement check of funds going back to the state to help others.

 

I think it would send a strong message to the others still on the program to have a sense of accountability, responsibility and appreciation to the taxpayers who fund these ongoing state run initiatives.

tamaramd

Lots of times people tell their case work about winning but the case worker do not report it because they do not want to do the paper work. 

Ok just let me say when I use to live in Michigan and was a single mother going to college. I was on welfare for 4 years, and ask my case work on how I can get some help attaining a washing machine for myself and my child. I was decline several times.  So I work a temp job just for 5 days to buy a washing machine and told my case worker about it.   Well 3 years later I was in court for welfare fraud. It was my word against hers, and you know who the court side with (not me) my case worker never did her job of reporting it.

 Also a lot of these case workers only there family on welfare get everything or they make up false case to get money for themselves.

PrisonerSix

Quote: Originally posted by tamaramd on Apr 16, 2013

Lots of times people tell their case work about winning but the case worker do not report it because they do not want to do the paper work. 

Ok just let me say when I use to live in Michigan and was a single mother going to college. I was on welfare for 4 years, and ask my case work on how I can get some help attaining a washing machine for myself and my child. I was decline several times.  So I work a temp job just for 5 days to buy a washing machine and told my case worker about it.   Well 3 years later I was in court for welfare fraud. It was my word against hers, and you know who the court side with (not me) my case worker never did her job of reporting it.

 Also a lot of these case workers only there family on welfare get everything or they make up false case to get money for themselves.

I am sorry to hear about that. I hope everything worked out for you. I once worked in a welfare office as a caseworker and I believe your story. We had a very high turnover of caseworkers in my office in fact, they'd hire 15-30 every month, most of whom didn't stay long. Most treated the job as a survival job or just a stepping stone to something better. Many were lax in doing their jobs and most didn't care. 

I'm sure there are some good caseworkers out there and in fact, there were many in my office who were diligent in doing their jobs, but there were just as many who weren't. Not all of it was the workers though, after I moved to administration, I found out it wasn't much better at the management level. The main thing was not missing deadline, and many workers cut corners and supervisors turned a blind eye do it. When workers have just too many cases, that is the only way to get them done timely.

On the original topic, I think lottery income should be counted against welfare benefits. I once worked in a nursing home where there were numerous elderly medicaid recipients and additional income was counted against their benefits. One example I can think of was a resident who had been divorced from her husband for many years and never remarried. He died and she became eligible for social security through him, but it wasn't found out until well almost 2 years later. The result was she ended up getting a social security check for $10,000 in back benefits. Her medicaid was cut off and she had to pay privately until all the money was spent down until she fell within the asset limits. The same should happen with welfare money and the lottery.

We did once have a welfare recipient win the lottery. She reported it and of course we had to close her case. It was in the hundreds of thousand she won and I don't know if she ever got back on welfare or not.

rdgrnr's avatarrdgrnr

Quote: Originally posted by ShowMeTheMoney$ on Apr 16, 2013

It's a shame the welfare recipients don't do the right thing and get off the program themselves if they win the lottery.  I guess it's human nature.  People are greedy and want money for nothing.

"People are greedy and want money for nothing."

And their chicks for free.

VenomV12

Technically if you win the lottery the welfare money you would be collecting your own money. I have said this before, but I will say it again, the same lottery winners that collect welfare that people talk smack about have probably paid more in taxes from their winnings than all of you combined and are paying for a lot of you guy's and your family's benefits that you are collecting. The amount that they would get back via welfare is a pittance to what they paid out in taxes when they collected. 

If you won as little as $150,000 for example and paid out say $60,000 in taxes, and got maybe $200 a month or so in welfare, it would take 25 years to recoup that amount. Almost everone in this country gets some sort of "welfare", whether it be corporate tax breaks, tax abatements, homestead credits, the list is neverending. 

The truth is the guy that won the lottery and still collects welfare 99% of the time has contributed more to society than you ever will. I pay a healthy 5 figures just in property taxes alone every year and I am not complaining about these people, so not sure why the rest of you do. 

dragonsfly

Yeah, that's nice, you need assistance to pay your bills and/or you don't work, but have money to spend on lotto tickets. Just like the homeless here in Vegas going from car to car at the intersections...they have no money for food, but have money for cigarettes. Confused

four4me

Quote: Originally posted by dallascowboyfan on Apr 16, 2013

WTG...."A Michigan agency has removed more than 500 lottery winners from certain welfare programs because of a new state law that cross-references winners with recipients of some types of aid."Thumbs Up

Now they just need to amend state laws to apply to ALL benefits.

So disabled vets should forfeit their disability benefits also because they won a couple grand. I don't think so.

SlntFtrWnr

Ok...here's my take.  Why not exclude past criminals as well?  Why not exclude those making over a certain amount or who have a certain amount of assets? Why don't we add provisions similar to those being proposed (and in some places, already in place) for gun control, i.e. mental health evaluations, etc.?  Money can be used as a weapon, like so much else.  The one thing I've held to (especially difficult to do when a well heeled person wins) is that if you buy a ticket, you have a right to win.  The lottery is not or is at least not supposed to be an extension of the state welfare program. 

I absolutely agree that if someone wins a significant enough amount of money that would disqualify them from government aid programs, they should be removed from the program, obviously.  But if someone wins a decent; but not exactly life changing amount, their case should be REVIEWED to see what levels of aid they still qualify for.  If someone wins $ 500, I don't really think that qualifies as an amount worthy of removing them from the a state aid program that they need to survive.  I'd like to see them have the latitude to invest that sum in moving them toward gainful employment.

Determining whether or not someone should be on government assistance should be based on assets and income; no matter what their source.  If the state wants to track lottery winners on state aid, fine.  But their evaluation should not be prejudicial.  There should be a consistent evaluation of ANYONE on the welfare rolls.  But lottery winners are an easy target.  Now if someone wins a pretty large amount...and is still on the rolls, I would be in favor of not only removing them; but pressing criminal charges.  These people aren't doing bad because they won the lottery; it's because they haven't declared a change in their status or increase in assets or income.

helpmewin's avatarhelpmewin

Quote: Originally posted by SlntFtrWnr on Apr 17, 2013

Ok...here's my take.  Why not exclude past criminals as well?  Why not exclude those making over a certain amount or who have a certain amount of assets? Why don't we add provisions similar to those being proposed (and in some places, already in place) for gun control, i.e. mental health evaluations, etc.?  Money can be used as a weapon, like so much else.  The one thing I've held to (especially difficult to do when a well heeled person wins) is that if you buy a ticket, you have a right to win.  The lottery is not or is at least not supposed to be an extension of the state welfare program. 

I absolutely agree that if someone wins a significant enough amount of money that would disqualify them from government aid programs, they should be removed from the program, obviously.  But if someone wins a decent; but not exactly life changing amount, their case should be REVIEWED to see what levels of aid they still qualify for.  If someone wins $ 500, I don't really think that qualifies as an amount worthy of removing them from the a state aid program that they need to survive.  I'd like to see them have the latitude to invest that sum in moving them toward gainful employment.

Determining whether or not someone should be on government assistance should be based on assets and income; no matter what their source.  If the state wants to track lottery winners on state aid, fine.  But their evaluation should not be prejudicial.  There should be a consistent evaluation of ANYONE on the welfare rolls.  But lottery winners are an easy target.  Now if someone wins a pretty large amount...and is still on the rolls, I would be in favor of not only removing them; but pressing criminal charges.  These people aren't doing bad because they won the lottery; it's because they haven't declared a change in their status or increase in assets or income.

I Agree! well said

helpmewin's avatarhelpmewin

Quote: Originally posted by four4me on Apr 17, 2013

So disabled vets should forfeit their disability benefits also because they won a couple grand. I don't think so.

I Agree! No No Nod

RedStang's avatarRedStang

Quote: Originally posted by SlntFtrWnr on Apr 17, 2013

Ok...here's my take.  Why not exclude past criminals as well?  Why not exclude those making over a certain amount or who have a certain amount of assets? Why don't we add provisions similar to those being proposed (and in some places, already in place) for gun control, i.e. mental health evaluations, etc.?  Money can be used as a weapon, like so much else.  The one thing I've held to (especially difficult to do when a well heeled person wins) is that if you buy a ticket, you have a right to win.  The lottery is not or is at least not supposed to be an extension of the state welfare program. 

I absolutely agree that if someone wins a significant enough amount of money that would disqualify them from government aid programs, they should be removed from the program, obviously.  But if someone wins a decent; but not exactly life changing amount, their case should be REVIEWED to see what levels of aid they still qualify for.  If someone wins $ 500, I don't really think that qualifies as an amount worthy of removing them from the a state aid program that they need to survive.  I'd like to see them have the latitude to invest that sum in moving them toward gainful employment.

Determining whether or not someone should be on government assistance should be based on assets and income; no matter what their source.  If the state wants to track lottery winners on state aid, fine.  But their evaluation should not be prejudicial.  There should be a consistent evaluation of ANYONE on the welfare rolls.  But lottery winners are an easy target.  Now if someone wins a pretty large amount...and is still on the rolls, I would be in favor of not only removing them; but pressing criminal charges.  These people aren't doing bad because they won the lottery; it's because they haven't declared a change in their status or increase in assets or income.

Tough debate. What if they win 2 mill and blow it in 6 months. Do they deserve to get Gov assistance again.

helpmewin's avatarhelpmewin

Quote: Originally posted by RedStang on Apr 17, 2013

Tough debate. What if they win 2 mill and blow it in 6 months. Do they deserve to get Gov assistance again.

i think that's how it works, i know a boy who is disabled and on disability and when he works they cut his check down if he makes over a certain amount of money but when he don't work he signs back up and get his disability check again Patriot

Ronnie316

Quote: Originally posted by helpmewin on Apr 17, 2013

i think that's how it works, i know a boy who is disabled and on disability and when he works they cut his check down if he makes over a certain amount of money but when he don't work he signs back up and get his disability check again Patriot

See Ya!

helpmewin's avatarhelpmewin

anyone 65+ on Social Security checks don't worry they can't take you moneyNo Nod

you can make as much as you want Smiley

helpmewin's avatarhelpmewin

Quote: Originally posted by Ronnie316 on Apr 17, 2013

See Ya!

See Ya!

Ronnie316

Quote: Originally posted by helpmewin on Apr 17, 2013

anyone 65+ on Social Security checks don't worry they can't take you moneyNo Nod

you can make as much as you want Smiley

I Agree!

helpmewin's avatarhelpmewin

Quote: Originally posted by Ronnie316 on Apr 17, 2013

I Agree!

I Agree!

Ronnie316

Quote: Originally posted by SlntFtrWnr on Apr 17, 2013

Ok...here's my take.  Why not exclude past criminals as well?  Why not exclude those making over a certain amount or who have a certain amount of assets? Why don't we add provisions similar to those being proposed (and in some places, already in place) for gun control, i.e. mental health evaluations, etc.?  Money can be used as a weapon, like so much else.  The one thing I've held to (especially difficult to do when a well heeled person wins) is that if you buy a ticket, you have a right to win.  The lottery is not or is at least not supposed to be an extension of the state welfare program. 

I absolutely agree that if someone wins a significant enough amount of money that would disqualify them from government aid programs, they should be removed from the program, obviously.  But if someone wins a decent; but not exactly life changing amount, their case should be REVIEWED to see what levels of aid they still qualify for.  If someone wins $ 500, I don't really think that qualifies as an amount worthy of removing them from the a state aid program that they need to survive.  I'd like to see them have the latitude to invest that sum in moving them toward gainful employment.

Determining whether or not someone should be on government assistance should be based on assets and income; no matter what their source.  If the state wants to track lottery winners on state aid, fine.  But their evaluation should not be prejudicial.  There should be a consistent evaluation of ANYONE on the welfare rolls.  But lottery winners are an easy target.  Now if someone wins a pretty large amount...and is still on the rolls, I would be in favor of not only removing them; but pressing criminal charges.  These people aren't doing bad because they won the lottery; it's because they haven't declared a change in their status or increase in assets or income.

I Agree!

JonnyBgood07's avatarJonnyBgood07

Quote: Originally posted by dragonsfly on Apr 17, 2013

Yeah, that's nice, you need assistance to pay your bills and/or you don't work, but have money to spend on lotto tickets. Just like the homeless here in Vegas going from car to car at the intersections...they have no money for food, but have money for cigarettes. Confused

sounds like connecticut....trendy clothes...medicre cars...plenty of gas to keep driving around the block..and plentyof newport cigs  to go around yet no job ,they're on section8..foods stamps..fuel assistance.

 

Truly the woking man is the sucker...

rdgrnr's avatarrdgrnr

Quote: Originally posted by helpmewin on Apr 17, 2013

anyone 65+ on Social Security checks don't worry they can't take you moneyNo Nod

you can make as much as you want Smiley

I didn't think you were that old!  Eek

helpmewin's avatarhelpmewin

Quote: Originally posted by rdgrnr on Apr 17, 2013

I didn't think you were that old!  Eek

your funny LOL

jamella724

If they only win just a small price I think there will be no problem if they still continue to be on welfare. However if they win a lot and they still continue to be on welfare that will be disgusting. They should get out from the program so other people who are needs the project more should benefit.

pickone4me's avatarpickone4me

When the government stops funneling money to big banks and big oil,  and failed greenie companies obama has given millions to,  then we can trash talk the welfare ones that win piddly amounts.

rdgrnr's avatarrdgrnr

Quote: Originally posted by pickone4me on Apr 23, 2013

When the government stops funneling money to big banks and big oil,  and failed greenie companies obama has given millions to,  then we can trash talk the welfare ones that win piddly amounts.

Good point.

Would that we could stop the corruption in every strata though.

psykomo's avatarpsykomo

Quote: Originally posted by dragonsfly on Apr 17, 2013

Yeah, that's nice, you need assistance to pay your bills and/or you don't work, but have money to spend on lotto tickets. Just like the homeless here in Vegas going from car to car at the intersections...they have no money for food, but have money for cigarettes. Confused

"have money for cigarettes"....................quote by DNF

"never give a sucker a break"..................quote by PTB

                                DanceDrumDance

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