Several reasons have been given for the existence of social insurance programs. The first reason is the industrialization of American society and the decreasing self-sufficiency of families. This has resulted in a greater dependency on monetary income to provide economic security. A second reason for social insurance programs results from the difficulty of privately insuring certain types of losses. In some cases, such as unemployment, loss rates are difficult to predict and there is potential for catastrophic losses. In other cases, such as medical expense coverage for the elderly, commercial coverage is available only at a cost beyond what many of the elderly can afford to pay. Finally, many Americans have come to expect the government to provide a minimum base of economic security against the consequences of premature death, old age, disability, and unemployment.3. Part B of Medicare is financed by a combination of monthly premiums paid by persons eligible for benefits and contributions from the federal government. The other parts of the Social Security and Medicare programs are financed through a system of payroll and self-employment taxes paid by all persons covered under the programs. In addition, employers of covered persons are also taxed. The current tax rate for both an employee and his or her employer is 7.65 percent of payroll up to a specified maximum which is adjusted annually. (There is no maximum for the Medicare tax.)5. A worker who is fully insured is eligible to receive monthly retirement benefits at age 62. However, an election to receive benefits prior to age 65 results in a permanently reduced benefit. In addition, dependents of a person receiving retirement benefits are also eligible for monthly benefits: a spouse age 62 or older. Again, benefits are reduced if taken before age 65.a spouse of any age if the spouse is caring for at least one child of the retired worker who is (1) under age 16 or (2) disabled or e...