Social security and Medicare are two essential programs which help people in need and low social classes to survive and receive quality healthcare. The proposed social security may resemble private insurance, but it is fundamentally different. The driving principle of social security programs is concern for adequacythat benefits meet the basic needs of persons these programs are designed to protect. The emphasis on social adequacy is consistent with societal goals directed at providing for the general welfare, protecting the dignity of individuals, and maintaining the stability of families and society. Another difference: people choose to buy private insurance; they are often forced to pay taxes for social insurance. Because of this feature, social insurance programs are not hindered by what economists call market failure even though these programs are structured to accept all, that is, to include persons who for such reasons as illness or advanced age would not be considered suitable for many private insurance plans. If
the federal government decided to offer disability protection as part of social insurance, it would have two advantages over Insurance Company. First, it could pool the risk broadly because of its coercive powers. Because everyone would contribute to the plan, the government is assured of a large revenue base to meet the costs as well as a good balance between good and bad risks. Second, it could raise the taxes indefinitely. If costs rose, so could taxes, enabling the disability plan to maintain is solvency (Kotlikoff, 2007). Today, private insurance depends on a search for profit. But, as noted, a concern for adequacythat benefits meet peoples basic needsdrives social insurance. The advantage of social insurance in this regard lies in the way that it helps to solve social problems; the disadvantage stems from a lack of limits that a market might otherwise set, though the political process, careful financing, and the linkage of benefit payments to payroll and other forms of taxation serve as a check. (Martocchio, 2002).