ECON 2D03 Lecture Notes - Lecture 7: National Health Insurance, Disability Insurance, Adverse Selection

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16 Nov 2017

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The poor could not afford to purchase private insurance or save to provide for their own economic security. A voluntary system would be subject to greater adverse selection. A process by which insured peoples choices lead to higher-than-average loss levels for the progra(cid:373)"s spo(cid:374)sor. The value of taxes paid to support current retired persons exceeds the value of benefits that can be expected to be received. The employers share of the tax provides benefits for social adequacy, not individual equity. Social security also provides disability insurance and medical insurance through. Social security does decrease savings, the tendency of the population to substitute. Social security for private saving, thus decreasing private saving. Early retirement effect increasing private savings by encouraging earlier retirements. Portions of the social security program- to be privatized: criticism: high income workers would benefit more than low income. Do(cid:272)tors, et(cid:272). paid dire(cid:272)tl(cid:455) (cid:271)(cid:455) the go(cid:448)"t. Health maintenance organization (hmo: group practice, contracts with insurance companies.

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Learn more about Social Security and Medicare reform (to improve financial strength of the programs) or solvency through Internet exploration. Find an article or resource related to one of these topics. Attach the article and write a brief summary (300-400 words) of what you found. A summary of the artice

Social Security Reform âTriggerâ Buried in GOP Budget Resolution Says The Senior Citizens League August 10, 2017 (Washington, DC) â The House fiscal year 2018 budget resolution includes instructions for creating an unusual Social Security âreform triggerâ and sets up an expedited path for ensuing legislation, says The Senior Citizens League (TSCL). âThe budget resolution instructions are written in such a way that lawmakers and President Trump would almost certainly be required to take up Social Security reform within the next 12 months,â says TSCL Social Security policy analyst Mary Johnson. https://www.ssa.gov/oact/TR/2017/index.html While budget resolutions donât have the force of law, the agreements set out the U.S. fiscal year budget and serve as a blueprint for subsequent legislation. The House resolution also includes reconciliation instructions for the GOPâs tax reform plan, but the resolution has been stalled due to disagreements over mandatory spending that includes Social Security, Medicare, and Medicaid among others. Under the proposed House budget resolution, a Social Security âreform triggerâ would be pulled in any year the Social Security Trustees determine the 75-year actuarial balance of the Social Security Trust Fund is in deficit. The resolution would also put any legislation on an expedited schedule for passage. âUsing that criterion, the Social Security reform trigger has already been pulled,â Johnson notes. In their latest report, the Social Security Trustees say the combined retirement, survivors, and disability Trust Funds will exceed total income by increasing amounts starting in 2022 and will be depleted in 2034, well within the 75-year period called for in the budget resolution. Once the Social Security reform trigger has been pulled, the House budget resolution stipulates that the Trustees would have until September 30th of the same calendar year to submit recommendations for the changes necessary to achieve a positive 75-year balance to the President. The resolution would then require the President to submit legislation to Congress within 60 days of receiving the Trusteesâ recommendations. President Trump promised repeatedly on the campaign trail not to touch Social Security. âMedicare is also in the cross - hairs for massive changes,â Johnson says. The budget resolution stipulates major changes that would focus Medicare on a system of private insurers, and provide beneficiaries with premium subsidies to shop for their own health insurance. A Congressional Budget Office report has found that similar proposals in the past would shift a growing portion of costs to older Americans. In that 2013 report, the CBO estimated that Medicare beneficiariesâ premiums would be about 30 percent higher by 2020 than under current law. âLike health care legislation to repeal and replace Obamacare, Social Security and Medicare reform proposals could become the center of a nasty political tug-of-war,â Johnson says. TSCL works to protect retirement security and to promote better adequacy of both Social Security and Medicare benefits. To learn more, visit www.SeniorsLeague.org.

ECON 2D03 Lecture Notes - Lecture 7: National Health Insurance, Disability Insurance, Adverse Selection

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