Iowa's Limited Benefit Plan. E. Paths Through the LBP


Cases can take several paths following their assignment to the LBP. One important path is cancellation of the LBP assignment, which enables the case to return to FIP immediately.(11) Here, we describe the frequency of LBP cancellation and the distribution of LBP cancellations by reason for and timing of cancellation. We also describe the paths taken by cases whose LBP assignments are never canceled. These include the full 12-month LBP and two types of early exit from cash assistance.

1. Cancellation of the LBP

As shown in Table III.4, slightly more than half of the assignments (53 percent) are canceled at some point. In Table III.5, we focus on the LBP assignments that are canceled. The primary reason for cancellation is signing an FIA. In total, nearly 80 percent of LBP assignments are canceled for this reason.

Table III.4
Table III.5

The remaining cancellations are primarily the result of corrections, appeals, or other administrative actions.(12)

Just over one-quarter (26 percent) of cancellations occur before the LBP takes effect, and essentially all of these cancellations are because the client reconsiders and signs an FIA. Another 55 percent of assignments are canceled by the signing of an FIA during one of the two reconsideration periods once the LBP is in progress. Approximately 30 percent of assignments are canceled in the first FIA reconsideration period, which is the first 45 days of the LBP, while approximately 25 percent are canceled in the second FIA reconsideration period, which is the fifth and six months of the LBP.

2. Never-Canceled LBP Assignments

Forty-seven percent of LBP assignments are never-canceled and are thus subject to the full LBP term, including the six-month period of ineligibility for cash assistance during months 7-12. To describe the paths taken by these cases, we examined their monthly receipt of FIP benefits. Table III.6 displays the number and percentage of these cases that exhibit several distinct paths through the LBP. Approximately 64 percent of never-canceled LBP cases exhibit a pattern of FIP benefit receipt that suggests an exit from cash assistance before the six-month period FIP ineligibility, we refer to this as an early exit. We identified two early exit paths: (1) approximately two-fifths of early exits occur before the starting date of the LBP,(13) and (2) approximately three-fifths occur after the LBP starting date but before the point of benefit termination.(14) The remaining 36 percent of never-canceled LBP cases exhibit a third path. Their pattern of benefit receipt is consistent with the full 12-month LBP term. In particular, these cases receive cash benefits during the first six months of the LBP but do not receive them in the second six months of the LBP, the FIP ineligibility period.(15)

Table III.6