Question

For this case, I would like for you to provide your opinion on three concepts covered in Chapter 14 (benefits). I would also like for you to support your opinion with logic, rationale, and/or accompanying information from outside sources (be sure to cite your sources).

1. Social Security – Why is social security as it currently exists experiencing a crisis? What should be done to fix it? How do you think the plan should change?
2. Healthcare – explain how healthcare has been affected since the passing of the Affordable Care Act. What do you think about this law? Is it good or bad? Support your opinion with data.
3. Retirement – what do you think about employer-sponsored retirement programs? If you owned a firm, what retirement benefits (if any) would you provide your employees? What type of plans are better or worse?

Answer 1

Why is social security as it currently exists experiencing a crisis? What should be done to fix it? How do you think the plan should change?

Social security payments already grow as the consumer price index rises annually. Economists have suggested that the chained CPI represents more specifically how consumers react to price increases – that is, by applying flank steak or chicken hamburger for beef. It is the price index.According to an American Academy of Actuaries survey, switching to chained CPI would cut the annual inflation rise by an estimated 0.3 percentage point and decrease the social security deficit to around a fifth. The concept will possibly be part of all potential talks, backed up by several bipartisan committees and President Obama, says Biggs. This is the only realistic way to both present and future recipients.

One easy way of improving social security is by pulling more jobs. The problem would be solved immediately by raising the tax by a few percentage points (split equally between workmen and employers), whereas a gradual rise of 0,1 percentage point per year over 20 years would reduce the burden on employees whose true salaries are probably higher.

This idea stands apart in talk of rising wages and reducing benefits: improving the gain for vulnerable communities. Proposals involve the creation of a minimum income that would sustain low earners in the long term above the level of poverty, raise old-age benefits and raise the age of dependants losing surviving benefits. Groups of leaders from all sides of the political process were prepared to take these targeted changes into consideration. Expect them to engage in an overall agreement.

Explain how healthcare has been affected since the passing of the Affordable Care Act. What do you think about this law? Is it good or bad? Support your opinion with data.

The US President Barack Obama successfully passed the Affordable Care Act (ACA). The aim of this act was to increase the number of American citizens with health insurance coverage and reduce costs of healthcare. Due to the implementation of ACA, the rate of uninsured Americans had dropped to 10.9% by the end of 2016. The implementation of ACA has changed how physicians and hospitals are paid, shifting towards more value-based payments. It reduced wasteful and expensive re-admissions and encouraged efficient use of hospital facilities. The ACA has reduced the cost of medical services and ensure that all the citizens of America are covered under ACA act. Under ACA, citizens are able to avail the minimum medical services which they could not be able to afford previously.

This law of passing ACA is a good initiative to enable all groups of people to avail healthcare facilities. It enables them to have a health insurance plan that covers the basic medical services. A health insurance plan saves money and give benefits when they have suffered from a serious injury or disease. Prior to ACA, many people do not have an insurance plan and they also could not be able to afford the medical cost. This results in unnecessary suffering and death of majority of people. But ACA solved their problem and helps to participate in the ongoing process of the healthcare system.

Retirement – what do you think about employer-sponsored retirement programs? If you owned a firm, what retirement benefits (if any) would you provide your employees? What type of plans are better or worse?

In employer sponsored retirement programs the employee does not have to worry about retirement programs and the selection of programs and bearing the risks of investment falls on the employer .Retirement benefits like pension funds , medical fund for medical expenditures after retirement etc can be created by the employer to provide retirement benefits to the employee . In these funds a part of employee's income should be deducted every month and deposited . This money should be invested in order to gain profits and increase the value of funds .Employee's self selection of retirement plans are better since the employee can choose the best plan that suits his or her personal needs .

Gillion, C., Turner, J., Bailey, C., & Latulippe, D. (2000). Social security pensions. Development and reform, 533.

Daniels, N. (2001). Justice, health, and healthcare. American Journal of Bioethics, 1(2), 2-16.

Gruber, J., & Wise, D. A. (Eds.). (2008). Social security and retirement around the world. University of Chicago Press.