Questions for my American friends!

[Englishlady]

Whilst I have a good understanding of most things American (I have a relative who is American), there are some things she can't or won't explain to me Why I don't know, it's not like I am asking her to reveal her Bank details


So I hope in my effort to be more enlightened about the USA, can someone please explain to me the following:

How does the "Food Stamps" system work? (& How does a person qualify for them?)

What other Financial Benefits can you expect to get if you hit hard times (ie. Job Loss etc.)


Those of you who work, what percentage of your salary do you have to pay in tax & are these determined by the State in which you are Resident or are they the same all over the USA?


If you have no Medical Insurance at all, what kind of care can you expect to receive at the "Free Clinics/Hospitals I have heard about?

If you were found to have a disease like Cancer or Motor Neurone Disease, would you be able to get any kind of "Free" Medical care for this, if not what happens then?

What happens to those poor people who have their houses destroyed in "Natural disasters" if they are not covered by insurance?

AND, if they ARE covered, if their house was destroyed more than once or twice would their Insurers refuse to pay out?

(This is getting to be the case here in the UK in Flood Areas


)

I am one of those people who like to know the "nuts and bolts" of everyday life I hope some one can help

TIA Karen

[Mommy2five]

Originally posted by Englishlady
What happens to those poor people who have their houses destroyed in "Natural disasters" if they are not covered by insurance?



TIA Karen

My family lives where the huricanes hit hard last year. My sister and mother were covered by insurance and they paid out. My brother did not have insurance and got money from FEMA (federal emergency management agency) to help rebuild and make his home livable again. The same company also provided MANY temporary travel trailers for people who lost their homes to stay in.


That is the only one I know about for sure to share the answers with you. Maybe someone who knows more on the other subjects can help

[QuilterMom]

Originally posted by Englishlady


What happens to those poor people who have their houses destroyed in "Natural disasters" if they are not covered by insurance?

AND, if they ARE covered, if their house was destroyed more than once or twice would their Insurers refuse to pay out?

I am in FL and am still surrounded by the remnants of destruction by hurricanes Frances and Jeanne last year.

For the people who did not have insurance to cover their losses, there are low-interest loans available from FEMA and other programs. Some people did get FEMA trailers to live in, others moved in with friends or relatives until they could decide what to do, and still others are living in their vehicles or camping out in tents (many people having to do this were featured in our local newspaper a couple of months ago).

As far as the people that do have insurance and had damages........ what the insurance companies are offering to pay is a hot topic here. I guess in a way you could say insurers are refusing to pay out because most people are not being offered a fair settlement. One man featured in our newspaper has $200,000 worth of damage to his home (estimates from contractors determined this $$ amount), yet his insurance company is only offering to pay $2,000 - $198,000 difference! There have been other people featured in the newspaper whose insurance companies are offering anywhere from $15,000 to $35,000 LESS than their damages are estimated at. It's a really sad situation. Insurance companies are of course claiming depreciation of value based on the age of homes and items, but the price of materials needed for repairs has of course not depreciated - prices have gone up!

As far as the homes having damage more than once or twice, those with insurance had to pay a deductible (based on the value of your home) for EACH hurricane that caused damage. That really hurt everyone as well.

[Jenlee]

As for food stamps, you qualify based on your monthly household income and the amount you pay for rent/mortgage and utilities. I have no idea the top amount, but I do know that a friend with a dh and 3 children gets $375 a month.

She gets a plastic card that looks like a credit/debit card and it goes into the machine at the cash register just like a credit/debit card. It has taken the stigma away from those paper coupons.

Unemployment is also available if you have worked long enough to qualify. In SC, the top payout is right at $300 a week, but I know some states are much higher and I'm sure it's due to the cost of living.

Karen, in 48 states, we pay national as well as state taxes. In all, my dh's check is deducted by about 22% for taxes. It's a sliding scale for the national tax - you pay a lower rate at $25,000 than you do at $125,000. Each state is a different rate and determined by the state.

As far as free clinics, I have no knowledge of one in my area, so I can't speak of that. I do know that our state has free medical insurance programs for children, but adults are out of luck in that area.

Not sure of the natural disaster/insurance problem, maybe someone here has knowledge of the insurance industry. I do know that in the US, if you live in a flood plain, you are usually required to buy flood insurance.

[Kimberlina]

I'll add my knowledge to some of these...

How does the "Food Stamps" system work? (& How does a person qualify for them?)


You have to be below a certain income/household sizze ratio to qualfy. The cards make fraud a little less likely, but by no means have they stopped food stamp fraud, which is a big problem in this country. I remember people buying one pack of gum with a $20 food stamp check, then gettting the change and using it to buy things not allowed. (Cigarrettes, alcohol, illegal drugs...) So, I personally am happy it has changed. It is better for the people who use it properly and harder to cheat (a little) for those who abuse it.

What other Financial Benefits can you expect to get if you hit hard times (ie. Job Loss etc.)


Unemployment insurance will eventually kick in for a limited time if you had a job and lost it. This is meant to help you stay afloat while you find another job, but again, a lot of people abuse this. You can also get help in other way, not just from losing a job, such as housing assistance.

Those of you who work, what percentage of your salary do you have to pay in tax & are these determined by the State in which you are Resident or are they the same all over the USA?


All depends on your tax bracket, as mentioned above. I think, in all, to pay state and federal taxes and social security (federalized "retirement" payments once you are old enough, not what it was originally designed for), DH and I pay out about 30%, and we don't make a lot to begin with.


If you have no Medical Insurance at all, what kind of care can you expect to receive at the "Free Clinics/Hospitals I have heard about? First, you can get free insurance through Medicare or Medicaid if you qualify. Medicare is generally reserved for the elderly, though those who are disabled from birth and also, for a reason I can't comprehend, people with drug and/or alcohol abuse problems can also qualify. Medicaid is generally for people who make under a certain income. And I don't know about other states, but in NY all children can be covered no matter the family's income, and there is a sliding scale fee for the monthly premium, from $0 to a little over $100. As for the free clinics, we have a clinic in the area that works on sliding scale and is subsidized by the state. If you don't have insurance, they will help you see if you qualify for the above. If you don't they charge what you can afford. And if you can't pay at all, they don't force the issue. As for th quality of care, I persoanlly wouldn't go there (only because I am on the inside, so to speak, and work with them on a daily basis and have a problem with the way some of the staff works) but I know people who love ti there. One of their pediatricians was recently recognized as one of the best in the country. Also, any hospital, public or private, that has an emergency department is required by law to treat anyone, regardless of their ability to pay. (Can you tell I work in a hospital??)

If you were found to have a disease like Cancer or Motor Neurone Disease, would you be able to get any kind of "Free" Medical care for this, if not what happens then?

Lots of places will treat you anyway. See above. Most times, you will qualify for SOMETHING. The hospital I work for has a charity insurance that you apply for yearly, and there is also (in NY state) an "indigent" fund for people who receive treatment and then are unable to pay. Unfortunately, everyone who receives hospital care gets taxed for this. (The "indigent tax" as it is called.) However, if you get a hospital bill and can't afford to pay that tax yourself, they will often waive it.

[Englishlady]

Thanks Very much everyone, I appreciate the information and am happy to hear more if any one wants to jump in here!

[malakito]

Originally posted by Englishlady
Whilst I have a good understanding of most things American (I have a relative who is American), there are some things she can't or won't explain to me Why I don't know, it's not like I am asking her to reveal her Bank details


So I hope in my effort to be more enlightened about the USA, can someone please explain to me the following:

How does the "Food Stamps" system work? (& How does a person qualify for them?)

What other Financial Benefits can you expect to get if you hit hard times (ie. Job Loss etc.)


Those of you who work, what percentage of your salary do you have to pay in tax & are these determined by the State in which you are Resident or are they the same all over the USA?


If you have no Medical Insurance at all, what kind of care can you expect to receive at the "Free Clinics/Hospitals I have heard about?

If you were found to have a disease like Cancer or Motor Neurone Disease, would you be able to get any kind of "Free" Medical care for this, if not what happens then?

What happens to those poor people who have their houses destroyed in "Natural disasters" if they are not covered by insurance?

AND, if they ARE covered, if their house was destroyed more than once or twice would their Insurers refuse to pay out?

(This is getting to be the case here in the UK in Flood Areas


)

I am one of those people who like to know the "nuts and bolts" of everyday life I hope some one can help

TIA Karen

Karen,

Food stamps: I don't know much about this program, except that to qualify you have to apply, and your income relative to the size of your household has to be pretty low. In other words, the income amount allowed for a single person to qualify is lower than, say, a family of five.

Job loss benefits: The main one available is called unemployment benefits. To receive them you have to have lost your job (not quit) and, at least around here, provide some minimal proof that you are looking for work. I believe they run out after a number of months. The program is supported by a tax on employers.

Taxes: There is a federal income tax, which is "graduated" -- the rate is higher the higher the income. However, there are also "deductions" that allow you to subtract certain amounts from income and "credits" which allow you to subtract certain amounts from the tax owed. The most commonly known tax deduction is for home mortgage interest. The most commonly known tax credit is for young children ($1,000 per child per year).

On top of the federal income tax, most states have a state income tax which is usually related to the federal tax but with a different rate structure. For example, I am in the 25% federal tax bracket but my state only taxes me at 8.1%.

In addition to the federal and state income taxes, there are also mandatory deductions for Social Security and Medicare. These are entitlement programs. The employer and employee both pay in -- 6.2% for Social Security and 1.45% for Medicare. When you are entitled to benefits you can claim them through the federal government. Social Security is primarily a type of federal pension which allows you to collect a monthly amount starting at age 65 or so based on how much you earned over your lifetime. Medicare is a medical program for people at age 65 or so. Social Security reform is a hot topic in the US right now because the taxes collected will soon not be enough to pay the projected benefits. (Medicare will also be running into financial trouble at some point.)

It is also possible to have city or local income taxes but this is unusual.

Medical insurance: Unlike the UK, the US does not currently have governmental health coverage for everyone (there is Medicare as noted above for "old people" and Medicaid -- a different government program -- for very poor people). Most people have health coverage through their employer, and in such cases the employer pays the majority of the premium. The employer can deduct the paid premiums on their taxes. However, a lot of lower-paying jobs don't offer health insurance, and the health insurance coverage costs have been rising at a rate far exceeding the general inflation rate for the past several years, so this too is somewhat of a crisis here. Some are calling for a nationalized health care system as you have in the UK.

The "free clinics" around are usually for very low income people and are not open to the general public. It is my understanding that hospital emergency rooms must treat and stabilize anyone who walks through the door, so in a sense that is "free". If the hospital doesn't get paid it just passes those costs on to the other patients.

Free medical care for cancer etc: Again, no socialized medicine in the US yet. People in this scenario are either covered by their group health insurance through their employer, by Medicare, Medicaid, pay out of pocket, or they go without care.

Natural disasters: There is a federal government agency here (FEMA) which handles these things I think. I know that one can purchase private insurance to cover losses from floods, tornadoes, and such. It is fairly easy to find out if one's house is in an area that is considered dangerous. If one doesn't purchase the insurance, then one is "out of luck" if the disaster does hit, although it may be possible to get government aid. The question of allowing the houses to be rebuilt in the same area does come up but I don't think it will ever get serious attention because the areas in question are usually nice places to live (except for the floods and tornadoes) and it's a relatively tiny part of the government's budget.

HTH,

malakito

[PrairieRose]

Texas is one of the states that you don't have to pay state income tax. We have a sales tax that we pay on most items excluding food.

We are self employed and we pay for our own health insurance. Right now we pay about $600/mo. for Gripey, myself and our youngest dd who is a full time student in college. We have a $5000. deductable that we are able to save in a health savings account and can use that money tax free for health related expenses. If we should not be able at some point to pay our health insurance premiums we would rely on what's called "indigent care" through the emergency rooms and health clinics here. We would just be seeing whatever dr. was on duty at the time with little or no choices on what hospitals and dr.s we'd like to use. We would right now be responsible for the payment of said services and health charges gone unpaid can ruin our credit. I don't want a socialized health care system but I would like some caps put on what insurers can charge for insurance. We've been on this insurance now for about a year and have had no major claims whatsoever. I just got a notice in the mail that they are raising our premiums about $150 per month, just because they can.

[Missy]

Originally posted by Englishlady



How does the "Food Stamps" system work? (& How does a person qualify for them?)

What other Financial Benefits can you expect to get if you hit hard times (ie. Job Loss etc.)

If you have no Medical Insurance at all, what kind of care can you expect to receive at the "Free Clinics/Hospitals I have heard about?

First of these questions, Food stamps... From what I know you have to make below a certain amount of money each month in order to qualify. There;s another similar program geared towards mothers, infants and children called WIC that you also have a celing on how much you can make (talk about frustrating, we make 40.00 a month too much to qualify for these programs here in our state. If you do qualify, each month you are given vouchers toward staples (milk, eggs, peanut butter, etc etc i don't know all the things you can/cannot get with these)

Second of these questions, Financial Benefits...The only one I know of is unemployment insurance, or just plain unelmployment. you go to the unemployment office in your city with a list of your previous work history and based on your previous salaries, you receive a certain percentage for a certain period of time. I don't kow if that's the same everywhere or if i am not describing it correctly. I was on unemployment for a brief period of time when i moved to maine, and i had some requirements to getting my check weekly...like had to have proof of actively seeking employment, if a class is offered thru the office that applies to you you have to take the class. Least thats how they did it there.

Third of these questions, Free medical clinics-no health insurance... this is a hit or miss issue here. we haven't any insurance at all. however we make 100 dollar a month too much to qualify for aide here. I have been up and down the baord here looking for aide. We were taken to court for payment of our daughters birth, we didn't have insurance then either. we are still paying that off. and another on the way...but I digress. It depends on your location, the "free clinic" celings on how much you make. We have a clinic here that is low cost, but none that are free, and they do not cut the price of meds if for instance your child has an ear infection you can expect to pay full cost for the meds, unless the doc happens to have a sample to give you.

I don't know if these answers are true across the country, but they are true for where I am.

[Englishlady]

WOW! Thanks you guys, this has been very interesting and very helpful.

I really appreciate the effort you have all gone to.

I read "Nickle and Dimed" by Barbara Ehrenreich ( about the life of low paid workers in the USA and I was shocked to read about the truely hard life of these workers.)

I will be returning the favour soon with some of my research into Very frugal toiletries and "double duty" products.....Karen the Guinea Pig is now heading off to her "Laboratory"

[QuilterMom]

Originally posted by PrairieRose
Texas is one of the states that you don't have to pay state income tax. We have a sales tax that we pay on most items excluding food.

We don't have a state tax in Florida either. Our sales tax rates vary by the county you live in (mine is 6%, some are 7%). We do not pay tax on groceries (with a few exceptions) or on over the counter medications.

I have read the book you mentioned. It was very eye opening!

[Lori Biever-Launder]

In Oregon, we DON'T have a sales tax. Boy, do I wish we did! Tourism is one of Oregon's main sources of income and we get NO sales tax form the items tourists buy here. However, if we go somewhere else, we are required to pay the sales tax THERE. Grrr.

As for WIC (stand for Women, Infants, Children), the foods are as follows (I THINK this is a complete list--jump in if I have missed anything!)

Beans or peanut butter
milk
oatmeal
certain cold UNSWEETENED cereals--Cheerios and the like
cheese
concentrated orange or apple juice
formula if you're not breastfeeding
eggs


As for food stamps, there are certain foods you can't use them for. Anything that is cooked and ready to eat (hot foods from an in-store deli) are off limits. IMHO, I don't think they should be used for things like sodas or candy. Before you judge me too hastily, let me tell you this: I gre up on food stamps and, while We bought necessities, we often saw people on food stamps who bough only junk food with their stamps. We bought pop twice a year: at Christmas and New Year's.