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Posted on September 28th, 2012, by

Social insurance is extremely important for the modern society. For instance, today, over 45 million Americans do not have health care insurance and cannot afford it. In such a situation, state social programs such as Medicaid and Medicare are vitally important for the uninsured people. In fact, the state funding of health care programs and services for uninsured people is actually the only hope to receive basic health care services. At the same time, the state funding of social programs does not refer to the field of health care services solely.

Instead, it involves other spheres, such as education and the development of public schools would be impossible without the state funding.

Even though the quality of education and health care services provided on the basis of state funding is severely criticized, but it is necessary to understand that for millions of Americans, the state funding is actually the last hope or the only chance to get any education or health care services.

At the same time, the state funding has a number of drawbacks. To put it more precisely, the funding of programs and financial support from the part of the state is accompanied by bureaucratization of the social programs and to participate in social programs people need to overcome bureaucratic barriers and wait for a long period of time to get the desirable aid or services. Also, the effectiveness of state funding is often lower compared to private funding because of lower efficiency of management of state and private programs or organizations.

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