Week 7 Discussion

A) Distribution analysis B) Behavioral response analysis

Largest share of annual expenditures on entitlement programs

Great society: SSDI (disability insurance) and Medicare in 1965

Part A: is paid for by a portion of Social Security tax. It helps pay for inpatient hospital care, skilled nursing care, hospice care and other services. Part B: is paid for by the monthly premiums of people enrolled and by general funds from the U.S. Treasury. It helps pay for doctors' fees, outpatient hospital visits, and other medical services and supplies that are not covered by Part A. Part C: (Medicare Advantage) plans allow you to choose to receive all of your health care services through a provider organization. These plans may help lower your costs of receiving medical services, or you may get extra benefits for an additional monthly fee. You must have both Parts A and B to enroll in Part C. Part D: (prescription drug coverage) is voluntary and the costs are paid for by the monthly premiums of enrollees and Medicare. Unlike Part B in which you are automatically enrolled and must opt out if you do not want it, with Part D you have to opt in by filling out a form and enrolling in an approved plan.

•Medicare Part A, Hospital Insurance; •Medicare Part B, Medical Insurance; •Medicare Part C (Medicare Advantage), which was formerly known as Medicare + Choice; and •Medicare Part D, prescription drug coverage.

1. Narrowly targeted groups 2. Various eligibility and benefits across state with basic requirements for all states. 3. Higher risk population are not necessarily covered.

1. NOT a public transfer but a private transfer between households. 2. NOT a social insurance program.

AFDC cases (1984+), all parents regardless of income (1984+); mandatory wage withholding and guidelines (1988+)

Paternity and CS collection programs

cooperation and assignment of rights to CS to the state

vary by state; income shares in 38 states and percentage of obligor income in 10 states