Marketplace alternatives to disability and survivor benefits

[National Dialogue Moderator <moderator>]

Some of the participants in this discussion would prefer to see 
marketplace alternatives to these benefits.  That may seem like a 
great solution for healthy younger people.  Unfortunately, not 
everyone is healthy and young, and those with serious chronic health 
problems may not be able to purchase coverage in the marketplace, and 
if they can, it will be costly.  The added cost will depend on the 
nature of the disability. Older people must pay more, but can usually 
secure coverage if in good health. The purpose of social insurance is 
to extend the coverage to all, including those who are in poor health. 

In addition, marketplace alternatives may assume that individuals have 
a choice about whether to buy coverage or not.  Given a choice, many 
would choose not to buy the coverage - leaving their families with 
major financial problems should they die or become disabled.  Social 
security is a start on survivor and disability benefits.  The private 
marketplace is the place to buy the next layer.


Anna Rappaport