Briefly describe the three main social insurance programs (Social Security, Medicare, and unemployment insurance).

Question

What will be an ideal response?

Answer 1

Social Security is a cash transfer program that provides income primarily to older
persons. Social Security accounts for almost 45 percent of all federal transfer payments.
Medicare is an in-kind transfer—a health insurance subsidy program that pays many of
the doctor and hospital bills for those over the age of 65. Neither of these programs are
considered welfare programs because one does not have to be poor to receive benefits.
These two programs, Social Security and Medicare, account for almost 70 percent of all
transfer payments. Benefits for unemployed in the form of unemployment compensation
are also a social insurance form of transfer payments. All three of these social
insurance programs are event based—job loss, old age, or disability.