Medicare is a social insurance program that serves more than 44 million enrollees (as of 2008). The program costs about $432 billion, or 3.2% of GDP, in 2007.
The definition of an institution is an established custom or practice, or a group of people that was formed for a specific reason or a building that houses the group of people. 1  Marriage is an example of a cultural institution. 2  A town council is an example of an institution of government.
An institution simply means a way of doing something or a way of managing something. Depending on the diverse human interest there are different types of institutions, such as religious, social, legal, political, economic, etc. But an economic system is concerned with the economic institutions only.