A basic income replaces many of today’s existing social benefits, but by no means all of them. Benefits such as in Germany the Bürgergeld (formerly Arbeitslosengeld II), social assistance, child benefit, Bafög and and housing benefit can be dispensed with as soon as there is a basic sufficient amount. People who have higher needs, for example because of a disability, can apply for a supplement to their basic income.
The situation is different with pensions and unemployment benefit. The function of these benefits is not only to secure subsistence, but also to largely maintain a previously achieved standard of living. A basic income cannot take over this task. Therefore, there must continue to be possibilities to secure oneself beyond the level of the basic income. However, this can be done on a voluntary basis. Compulsory contributions to a „solidary“ standard life insurance are now difficult to justify if a basic security for all is guaranteed independently of this system.
Health insurance coverage for all must of course also exist in a system with an unconditional basic income. Good health care is at least as important as a minimum income, and must therefore be guaranteed to everyone, regardless of whether they are very solvent or live only on their basic income alone. An interesting way of integrating health insurance coverage into a basic income system is shown by the concept of the „Solidarisches Bürgergeld“: According to the proposal of former Thuringian Prime Minister Althaus, a health and long-term care insurance voucher would be included in the unconditional basic income. All health insurance funds would be obliged to offer everyone a basic tariff with legally defined standards for this contribution. Health insurance contributions in their current form would be abolished. Basic health care would now be financed through taxes and would be available to everyone unconditionally – regardless of whether they are employed or not.
In addition, there are of course many other social services, whose services cannot be replaced by a cash payment, and which must therefore continue. All these programmes can be tailored more closely to the individual needs of each person, if securing one’s livelihood through gainful employment is no longer the dominant issue.
Read more at Hamburger Netzwerk Grundeinkommen link (currently available in German only)