Health Affairs, 25, no. 3 (2006): w138-w140 (Published online 21 March 2006) doi: 10.1377/hlthaff.25.w138 © 2006 by Project HOPE	New Online   Senate Health Reform Bill   Rewarding Providers   Public Option Policy Brief   Health Reform & Abortion   Delivery System Reform

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Social Insurance And Elderly Entitlement Reform: Are They Compatible?

There is no inconsistency between Social Security and Medicare reform and a firm commitment to the concept of social insurance. The retirement benefit components of these programs are not part of social insurance. Social insurance allows for people who experience low-probability random bad events to be compensated by others. An event, such as reaching retirement age, is a high-probability event and not a candidate for social insurance.

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