Question

Discuss the connection between redistribution and social insurance. How was the Affordable Care Act designed to save money and curb rising healthcare costs, and why was it successful (or not)?

Answer 1

Redistribution means distribution of money or money equivalent to the the needy people.

When we used to give taxes to the government the various activities, those funds are collected by the government and therefore it is distributed for the good of the needy people or it is spent for the welfare of common people. This is called redistribution of money.

Same applies for non government organisations also. When we donate to the NGOs they use those funds for the welfare of the society or for the poor on needy people.

Now the social insurance is one type of insurance which insure the society with the insecurities for not having enough money.

So it is directly related to the redistribution, where the government or the NGOs redistribute money or money equivalent to execute the social insurance.

Affordable care act is amended for the poor people who cannot go for the general medical insurance where they need to spend hell lot amount of money which surely that can't afford. It is affordable to all the poor people because that cost of medicine and the cost of treatment is very much low due to various factor. It is possible for the subsidy and another way of achieving it by the using substitute medicine from other cheaper brand where the effect of medicine is same but the cost is reduced.