The reasons for government involvement in social insurance include all of the following EXCEPT:

Question

Quizplus · Accepted Answer

The reasons for government involvement in social insurance include addressing potential adverse selection problems, achieving cost savings, and paternalistic beliefs that individuals may not engage in necessary planning. The adverse effect on the distribution of income is not a reason for government involvement in social insurance. In fact, government involvement in social insurance is often aimed at reducing income inequality and providing a safety net for those who may not have access to private insurance or have low income.

The Reasons for Government Involvement in Social Insurance Include All