What is the difference between insurance and social assistance programs

what is the difference between insurance and social assistance programs

Introduction

Differences in Programs. the. Differences in individua paymentl s under the insurance and assistance programs result from var­ ious differences in the programs, the most important of which are concerned with administration financ, ­ ing, coverage an, d the basis of payments. Administration. The two important types of social security are as follows: 1. Social Assistance 2. Social Insurance. 1. Social Assistance: Social assistance refers to the assistance rendered by the Government to the needy persons without asking them to make contributions to be entitled to get such assistance.

Health insurance is designed to protect tthe from the financial expenses incurred if you suffer an injury or illness. Insurance plans may be offered through an employer or purchased privately. If a person cannot afford health insurance, they may qualify for coverage through a social assistance program. One such program is Medicaid, the federal health care plan for low-income individuals and families.

Although insurance and social assistance offer similar health care benefits, there are some key differences. Although the programs fall under the category of social assistance, each program has its own eligibility guidelines and requirements.

Onsurance person may qualify for one program and not the others. Every state establishes and administers its own Medicaid program and is responsible for determining the type, amount, duration and services covered within federal guidelines. In some states, even the name is different. For example, the California Medicaid program is known as Medi-Cal. Private or employer-sponsored health insurance plans are open to assistancf, regardless of income or assets.

Medicaid has strict income and resource limits for certain eligibility groups. The Medicaid program is open to low-income children, parents or caretakers of children, pregnant women, the elderly and disabled. As ofthere are no federal requirements for states to provide coverage to adults without dependent children. For example, pregnant women are allowed program household income between and percent of the FPL, depending on the state.

At the time of publication, how to draw little girl cartoon insurance plans can choose progrwms decline coverage or charge higher rates if you have a pre-existing medical condition.

A pre-existing condition is one that you had before purchasing insurance. Serious conditions, such as cancer, asthma, heart-disease and insulin-dependent diabetes, may result in an automatic decline. The Affordable Care Act prohibits insurance companies from declining coverage to children age 19 and under with pre-existing conditions.

However, adults may still be declined coverage. Beginning inprivate insurance plans will no longer have the right to refuse coverage to anyone based on pre-existing conditions. Medicaid is open to everyone who meets the eligibility criteria, regardless of their current health status. Insurance companies charge a policy premium, co-pays and have deductibles you must meet.

Although Medicaid charges certain eligibility groups out-of-pocket expenses, services cannot be withheld for failure to pay. Under federal law, children, terminally ill individuals and individuals residing in an institution cannot be charged for Medicaid in any state.

Medicaid also covers prescriptions. In some states, coverage also include vision and dental. To inquire about your state's Medicaid program or apply for coverage, contact your state's department of health and human services. Jeannine Mancini, a Florida native, has been writing business and personal finance articles since Her articles have been published in the Florida Today and Orlando Sentinel. Share It. Lyndon B. Johnson Presidential Library. Kaiser Family Foundation.

Congressional Research Service. Accessed Aug. District Court of Appeals in the District of Columbia. Alex Azar, II, D. Supreme Court. Sebelius, U. Medicaid: Federal Poverty Guidelines.

Language selection

Social assistance is kind of help which depends upon certain conditions and legalities between the workers and the stat. social assistance is given as a voluntary help while social insurance is granted to those persons only who pay a contribution. A major difference between social insurance and public assistance programs is that a social insurance covers the entire eligible population, but public assistance covers only the needy. The major difference is Social insurance covers the entire population, but public assistance covers only the needy. The social welfare system in the U.S. differs widely from the systems in the other advanced industrial nations they surveyed. In the U.S., social welfare spending draws.

The two important types of social security are as follows: 1. Social Assistance 2. Social Insurance. Social assistance refers to the assistance rendered by the Government to the needy persons without asking them to make contributions to be entitled to get such assistance. In other words, social assistance includes those benefits which are provided by the Government without any contribution from workers and employers.

Social insurance refers to a scheme of maintaining fund from the contributions made by the employees and employer, with or without a subsidy from the Government. In other words, social insurance can be defined as a device to provide benefits as of right for persons of small earnings; in amounts which combine the contributive efforts of the insured with subsidies from the employer and the Government Examples of social insurance are provident fund and group insurance.

Strictly speaking, these two types of social security measures may be said to be the two faces of the same coin. As a matter of fact, both of them are integral parts of a social security system. Here, it seems pertinent to make distinction between social insurance and commercial insurance. Following Table Table Social Security. You must be logged in to post a comment.

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