The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) ended the individual entitlement to welfare benefits and gave states new flexibility to emphasize work instead welfare. PRWORA also severed the traditional eligibility link between Medicaid and welfare. This research examined the emergence of diversion programs as a particular aspect of state welfare reform efforts and the potential for diversion programs to reduce access to Medicaid. In this second of two reports, we present the results of case studies in five states.
Major findings from this research are:
- Formal strategies to divert families from welfare are an increasingly common aspect of states' efforts to shift to a work-oriented assistance system. These efforts to emphasize work instead of welfare on the “front end” can also result in informal diversion.
- Design and implementation of diversion programs reflect state and/or local goals and philosophies; these five states represent a range of diversion strategies that illustrate the importance of understanding key...