A new acronym is on the scene! Two Virginia newspapers have recently written stories about ALICE families, so we thought we’d explain how these families relate to our breast cancer work.
What does ALICE stand for?
ALICE stands for asset-limited, income-constrained, and employed. In other words, these families don’t have much, if anything, saved in retirement and may or may not own a house, have a tight income, and are working. How is this population different from those living below the poverty level? The answer is the arbitrary category of the “poverty level.” Families with income below the poverty level are also asset-limited, income-constrained, and many of them are also employed. However, their income falls below a limit calculated using a formula created in the 1960s, which we still use today.
Poverty line vs ALICE
The “poverty level” category was created in 1964 to establish a definition of poverty. Back in 1964, the poverty level was calculated based on the cost of food, which was the most expensive budget category for a family relative to their income. The economist who created this definition, Mollie Orshansky, estimated that a family would spend, on average, one-third of their income on food, so she multiplied by three the cost of the cheapest nutritional food plan established by the FDA at the time, and thus the poverty level was born. The formula has not changed in almost sixty years. The current poverty level for a family of four in the 48 contiguous states and DC (higher in Alaska and Hawaii due to shipping costs) is $30,000.
In our modern world, things have shifted significantly. In 1973, a bill was passed that significantly reduced the cost of food. Childcare, housing, and healthcare costs have soared and are now the most expensive costs relative to a family’s income, and smartphones have emerged on the scene and are essential for working families. These changes are taken into account in the ALICE category, which captures a more comprehensive picture of what resources it takes to function in modern society. The ALICE calculation can be viewed down to the zip code, so it gives a good look at what it actually costs to live in an area.
What does that have to do with VBCF?
The poverty level is the official designation of who is entitled to programs earmarked for the neediest families. However, what ALICE families tell us is that the poverty level is an ineffective benchmark when it comes to providing assistance because so many more families are struggling to make ends meet than fall below the poverty level.
This is why VBCF’s Diagnostic Fund Program, currently established in Southwest and Southern Virginia, is available for families with incomes above the Federal Poverty Level (FPL) to encompass ALICE families. In the greater Roanoke area (Botetourt, Franklin, Roanoke, City of Roanoke, and Salem), the ALICE level for a family of four is $64,608 per year or $5,384 per month. For additional context, the ALICE level for the Richmond Metro area (City of Richmond, Henrico, Chesterfield, Hanover) is $74,196.
We know that it’s especially hard for families at this income level to come up with $1,000 or more on short notice, and that can be the cost of following through with an abnormal mammogram result. It’s important to note that even families earning around the ALICE threshold are only making ends meet. Though they can balance the budget month to month, they are not able to save for emergencies. VBCF understands that families well above the official FPL need help to pay for their unexpected medical costs. We are working to help those in need get their breast cancer diagnosis in a timely manner, eliminating one of the financial roadblocks. VBCF’s Diagnostic Fund is proud to help people up to 400% FPL to avoid delays between breast cancer screening and treatment to improve health outcomes.
For more information:
Learn More about VBCF’s Screening & Diagnostic Services Fund
