Quiz 18 :
Social Security

Social Security is need-based and does not depend on a person's employment history.

Both public assistance programs and social insurance programs are organized and undertaken by the government and have the broad social purpose of reducing want and destitution.

Social insurance is also referred to as public assistance.

Like social insurance, employers and employees pay into the public assistance system to earn their rights to benefits.

The insurance principles of assessing and pooling risk do not apply to welfare programs.

Normal retirement age for the purposes of Social Security ranges from sixty-two to sixty-five.

A fully insured worker is entitled to receive reduced benefits for Social Security, if he retires at the age of sixty-two.

A widow or widower of a fully insured deceased worker is qualified for benefits at age fifty, if disabled.

The bend points decrease as average wages in the economy increase.

If an individual qualifies as both a worker and as the spouse of a worker, the beneficiary will receive whichever primary insurance amount is greater, but not both.

For an individual retiring past the normal retirement age, the final benefit amount is equal to what the PIA formula reveals.

A beneficiary attaining the normal retirement age after 2002 is exempt from reduction of Social Security benefits regardless of the amount of earned income.

Wages beyond the threshold are not subject to the Medicare Part A tax, but they are subject to the OASDI tax.

Anyone who is eligible railroad retirement benefits at age sixty-five is also eligible for Medicare Part A.

Through Medicare Part D, eligible participants can elect to receive the benefits of Medicare Parts A and B through private health plans, in addition to certain items not covered by Medicare Parts A and B.

The combination of Part C Medicare Advantage plans with Part D prescription drug benefits are known as Medicare Advantage Prescription Drug plans.

In the last two decades, Social Security taxes have increased much faster than the general level of prices, but not as fast as the cost of health care.

The current generations of taxpayers are confident about the ability of the Social Security system to deliver benefits at current inflation-adjusted levels.

Both Social Security and Medicare programs face a long-term financing gap.

The current Social Security benefit levels cannot be maintained without raising Social Security withholding taxes or extending the normal retirement age.

Regarding the privatization of Social Security program, a majority polled say that "making sure that people receive a better rate of return" is a higher priority than "making sure that people receive a decent, guaranteed monthly retirement benefit."

Originally, this program was a compulsory pension plan known as Old Age Insurance (OAI).Later, survivors' benefits were added and the program became known as Old Age and Survivors' Insurance (OASI).When disability benefits were added, it became Old Age, Survivors', and Disability Insurance (OASDI), and, with the addition of hospital and medical benefits, it became the Old Age, Survivors', Disability, and Hospital Insurance (OASDHI) program.Identify this program.

The objective of this program is to provide a "floor of protection" or a "reasonable level of living." It is the foundation on which retirement, survivors', and disability benefits should be designed.In addition, the program is the foundation for health benefits for the retired population under Medicare Part A, Part B, Part C, and Part D.Identify this program.

The Social Security program is the foundation for health benefits for the retired population under the Medicare plans.Medicare Part A is mostly concerned about:

The Social Security program is the foundation for health benefits for the retired population under the Medicare plans.Managed care medicine is included in _____ of the Medicare plan.

This is an insurance program that is compulsory for nearly all Americans, eligibility criteria and benefits are specified by law, and financing is wholly or partially covered by the employer.Some examples of these insurance programs include workers' compensation and unemployment compensation, and Social Security.Identify these programs.

The first part of OASDHI is the old-age, survivors', and disability (OASD) insurance program known as:

Which of the following statements is true about Social Security?

To be eligible to receive Social Security benefits, a worker must:

To be eligible to receive benefits, a worker must achieve insured status.A Social Security beneficiary acquires this status once forty credits of coverage are earned, or when the beneficiary has a minimum of six credits of coverage and, if greater, at least as many quarters of coverage as there are years elapsing after 1950, or after age twenty-one.Identify this insured status.

To be eligible to receive benefits, a worker must achieve insured status.This status is achieved if the Social Security beneficiary has at least six credits in the thirteen-quarter period ending with the quarter of death.Identify this insured status.

Which of the following statements is true about retirement income benefits, if a fully insured worker retires?

Social Security _____ benefits protect the dependents of a fully or currently insured deceased worker.

Identify the correct statement about survivors' benefits.

This benefit is paid to the spouse living with the worker at the time of death, or a spouse otherwise entitled, or children entitled of a fully or currently insured worker.It has not increased since the Social Security legislation was passed in 1935.Identify this benefit.

Which of the following is true about disability benefits in Social Security?

An individual is entitled to full disability benefit through Social Security if:

During the calculation of this factor, workers' earnings for prior years, up to the maximum Social Security wage base are adjusted to what they would have been if wage levels in earlier years had been the same as they are now.Identify this factor.

These points represent the dollar amounts at which the primary insurance amount formula for Social Security benefits changes.These points increase as average wages in the economy increase.Identify these points.

The maximum family benefit is the maximum monthly amount that can be paid on a worker's earnings record.When the family reaches its maximum family benefit, the:

Social Security benefit amounts are increased annually by automatic cost-of-living adjustments.The theory is to:

The Social Security retirement benefit may be reduced for a retiree who is younger than normal retirement age and whose annual earned income exceeds the retirement earnings exempt amount; this provision is called the:

The purpose of this test is to limit monthly cash benefits for retirees who have earned income and to reduce the cost of the Social Security program.Identify this test.

Social Security taxes, sometimes called _____ taxes, are automatically withheld on wages up to a set amount and are adjusted annually for inflation.Any wages earned over this wage base are not taxed for Social Security, although Medicare Part A taxes are still deducted.

Which of the following statements is true about the Social Security program?

Which of the following services is provided by Medicare Part A?

Which of the following services is provided by Medicare Part B?

Identify the charges that are not included through Medicare Parts A and B?

Under this part, the Social Security Administration and the Centers for Medicare & Medicaid Services work together to provide persons with limited income and resources with extra help paying for their prescription drugs.Identify this Medicare coverage.

The Social Security funding burden is being borne by a shrinking sector of society because:

Which of the following reasons can be attributed to the long-term financing gap faced by the Social Security and Medicare programs?

Write a short note on the types of benefits available for Social Security.

To be eligible to receive Social Security benefits, a worker must achieve insured status.Discuss the different types of insured status.

Write a note on the eligibility criterion for disability benefits under the Social Security program.

Define primary insurance amount and average indexed monthly earnings.

What is an earnings test? Explain its purpose.

Write a note on Medicare Part A.

What are Medicare Advantage Prescription Drug plans?

_____ is a major social insurance program that was created in 1935 as an outcome of the Great Depression.

The _____ program is the second largest social insurance program in the United States.

Public assistance programs are also referred to as _____ programs.

The second part of the OASDHI program is known as _____.

To be eligible to receive benefits, a worker must achieve insured status.If the worker's status is _____, most types of Social Security benefits are payable.

To be eligible to receive benefits, a worker must achieve insured status._____ status is gained by the Social Security beneficiary having twenty credits in the ten years before disability begins.

In the case of _____, a benefit is reduced 5/9 of 1 percent for each month before the normal retirement age for Social Security benefits.

The _____ is the basic unit used to determine the amount of monthly Social Security benefits.It is computed from a person's average indexed monthly earnings.

Social Security benefit amounts are increased annually by _____ linked to increases in the consumer price index.

Social Security benefits are financed through payroll taxes paid by employers and employees and by a special tax on earnings paid by the self-employed.The tax rate for employers and employees is 6.2 percent for OASDI, up to a maximum amount of earnings called the _____.

FICA taxes is another name for _____ taxes.

The Social Security system is primarily a(n) _____ system, meaning that current tax revenues are used to pay the current benefits of Social Security recipients.

The primary insurance amount, computed from _____ up to the Social Security wage base, is used to determine the amount of monthly benefits.

Medicare _____ covers physician services, out-patient hospital services, certain home health services, durable medical equipment, and other items.

Medicare _____, also known as Medicare+Choice, was authorized by the Balanced Budget Act of 1997.

Medicare Part C or Medicare+Choice became known as _____ plans with the addition of prescription drug coverage through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003.

Medicare _____ is the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, enacted December 8, 2003.