Question

what exactly is social insurance in the united states and name and describe the funding sources for the two major social insurances? what percent of total healthcare expenses are paid through these insurances? explain two unintended consequences of social insurance programs?

Answer 1

Q.1 Social insurance refers to any financial aid or grant being provided by US government, generally referring to state sponsored programs which hast he following four features -

1) The eligibility criteria gets defined by the state.

2) Through an explicit provision the expenses are manged and arranged.

3) Gets funded by the taxes paid by the participants

4) set to defined specific population not for all.

In United States the followings are the program which are considered as social insurance programs-

Medicare, Social Security, Pension benefit guarantee operation, unemployment insurance etc.

The two major social insurance programs are medicare and social security. Medicare gets funded through a paroll tax levied upon employers and employees of those who come under A category, Self employed earnings tax. Part B and D of the Medicare gets partially funded by premiums being paid by medicare enrollees and through general fund revenue.

Social security primarily gets funded through payroll taxes known as FICA or SECA.