The basic distinction between social insurance programs and means-tested programs is that the former involve benefits from general revenues for people who qualify based on low income, and the latter involve payments to and from a trust fund.

Question

Quizplus · Accepted Answer

The statement is incorrect. Social insurance programs are funded by payroll taxes and provide benefits based on earned eligibility criteria, such as employment history or disability status. Means-tested programs, on the other hand, are funded by general revenues and provide benefits based on the applicant's income and assets.

The Basic Distinction Between Social Insurance Programs and Means-Tested Programs