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What Is the Difference Between a Pre-Funded Model and a "Pay-As-You-Go

Question 41

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What is the difference between a pre-funded model and a "pay-as-you-go" system for social safety net programs?


A) Entitlements come from current earnings of other people in a "pay-as-you-go" system.
B) Workers' contributions are accrued over their lifetime in a "pay-as-you-go" system.
C) High rates of medical "overtreatment" occur in a pre-funded model.
D) Affordable housing and universal design affect a pre-funded model.

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