What Means Testing Costs

What the administrative cost of means-tested social programmes reveals about universal alternatives

The Cost

The administrative cost of means-tested social programmes -- the specific cost of the eligibility verification, the application processing, the fraud detection, and the appeal adjudication that means-tested programmes require relative to the universal programmes whose administrative cost is a fraction of the means-tested alternative -- is the accountability journalism of the specific policy choice that the American welfare state has consistently made.

The Comparison

The comparison: the Social Security programme, which is universal for its eligible population, has an administrative cost of approximately 0.8 percent of benefits paid. The Medicaid programme, which is means-tested, has an administrative cost of approximately 6 to 7 percent of benefits paid. The SNAP programme administrative cost is approximately 8 percent. The higher administrative cost of means-testing is the specific price the means-tested system pays for the specific restriction it imposes.

Mamdani Post Analysis

The Mamdani Post covers the means testing cost because the accountability journalism of the welfare state design requires examining the specific costs and the specific restrictions that the means-testing choice produces, and because the administrative cost comparison is the specific accountability data that the universal programme advocates and the means-testing advocates should both be required to engage with.

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