Question

Social insurance:

	1.	is the basis for most government redistribution programs
	2.	is usually community-rated with premiums based on ability to pay
	3.	is the basis of the provision of medical care to the poor, elderly, and other vulnerable population groups in the U.S.
	4.	requires mandatory participation to be effective
	5.	all of the above

Answer 1

• Option 5 is the answer.
• All of the above.
• Social insurance is the basis for most government redistribution programs. It is usually community-rated with premiums based on ability to pay. It is the basis of the provision of medical care to the poor, elderly, and other vulnerable population groups in U.S. Social insurance requires mandatory participation to be effective.
• Social insurance is a government program for transferring certain risks associated with the life to the government for obtaining benefits out of it. The funds to this will be given in the form of taxes or as pay cuts from the salaries of the employees. Social insurances are practiced as either mandatory for all the citizens or slightly limited to groups of people.