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What is entitlement spending?

Updated: 9/14/2023
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An "entitlement program" is generally one for which an individual qualifies simply by virtue of his or her circumstances. For example, the Social Security law has several components, some of which are "entitlements" and some are not. The largest program, SS Retirement is NOT an entitlement as an individual qualifies for it only by virtue of having paid into the program at least forty quarters; Supplemental Security Income and Social Security Disabilities ARE entitlements because an individual is entitled to SSI simply by having a very low income and to SSD after being disabled for at least six months. Similarly, the largest portion of Medicare--health insurance of seniors--is NOT an "entitlement" as one qualifies by paying into the system and paying premiums. Medicaid and Temporary Assistance to Needy Families, on the other hand, ARE entitlements as qualification depends on a set of circumstances in which an individual may find himself. Unemployment Compensation is an insurance program paid by employers (and employees, who can elect to supplement UC) and is NOT an entitlement.

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