Question

What is the difference between a social insurance and a public assistance approach to government-finance national health insurance? Use Medicare and Medicaid as examples.

Answer 1

1.

Social insurance programs provide aid to those who are retired or suffering from temporary distress. They are usually financed through payroll levies and are viewed to be earned rights because they are paid for by recipients. Public assistance programs provide benefits for those who are unable to earn income because of permanent disabilities or who have no or very low income and have dependent children to receive assistance an individual must pass a means" test. The cash payments are paid for out of general tax revenues. Most of these revenues come from individuals other than the recipients.

The Medicare program is a part of the Social Security program and is financed with a 29 percent tax on wage and salary earnings Those who have reached 65 years of age are eligible to participate in the program Medicaid is a program for individuals who are participating in the SSI and TANF programs. It is financed from general tax revenues and is available only to qualified individuals.

The earned-income tax credit is considered a public assistance program because it is targeted at low income familles