Iowa's Limited Benefit Plan. H. Summary of Findings


In this chapter, we examined the status of LBP cases in the month before benefit termination, in the interview month, and the changes status between these two points in time. In reviewing the findings, it is important to recall that the changes we observe are short-term changes. Also, benefit termination under the LBP is restricted to PROMISE JOBS-mandatory cases that do not meet employment and training requirements; these cases are not representative of the FIP caseload as a whole.

The major findings that emerge from this chapter are as follows:

  • There was relatively little change in household composition and housing arrangements associated with the termination of cash benefits for LBP cases.
  • Following the termination of benefits, there were clear gainers and losers in terms of overall economic status, as measured by total household income. On average, total household income increased by $13; however, more households experienced a decrease in income than an increase in income.
  • Approximately half of the respondents were employed after benefits were terminated, but only about 10 percent of those employed received health insurance on their most recent job.

Family, friends, and neighbors were important sources of support for LBP cases in the months following benefit termination. Emotional support was the most common type of support provided, though financial support was also commonly provided by family members.


1. While there was not widespread incidence of children moving out following benefit termination, one or more of the respondent's children was sent to live elsewhere in a few instances (Table V.2 and Table V.3). The 12 case studies included several families in which children moved out. These findings are discussed in Chapter 7.

2. These jobs may have been held concurrently or consecutively.

3. While eligibility for regular Medicaid is not directly affected by the LBP, cases in the LBP are not eligible for the Transitional Medicaid that is provided to former FIP recipients whose eligibility for cash assistance has ended as a result of increased income from employment.

4. The case studies, discussed in Chapter VII, suggest that some LBP parents more actively pursued child support from the noncustodial parent following the termination of cash assistance.