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In: Economics

What’s the difference in social insurance, such as Medicare, and actuarial insurance, such as car insurance,...

What’s the difference in social insurance, such as Medicare, and actuarial insurance, such as car insurance, and why is the difference important in health care?

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Expert Solution

Social insurance like Medicare is a compulsory government insurance which a person gets enrolled into by birth by default.

The coverage of this insurance is very limited to the basic things like basic health check ups and is applicable to all residents.

Acturial insurance like car insurance is a type of private insurance where in there are a lot of agents offering insurance and the person is free to chose or not to buy insurance. This type of insurance covers a wide range of areas and is based on premium pay.

This difference is important in health care because in some countries health insurance is provided by default to all residents but covers only basic features like check ups and protection care. If one needs to have a wide range of things covered, then he needs to buy commerical insurance covering health.

Rahul Sunny answered 2 years ago
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