Ch 14 - Social Insurance!!
Recent proposed changes include
- "Progressive indexing" to determine benefits - Increasing payroll tax for employers and employees - Reduce benefits for FUTURE retirees
To be eligible for Unemployment Insurance you must meet these 4 monetary requirements
- Have qualifying wages and employment during the base year - Be able and available for work - Be actively seeking work - Satisfy a 1-week waiting period
The deficit can be REDUCED by
- Increasing taxes - Decreasing benefits - Using general revenues to pay benefits
4 benefits of Workers comp
- Medical care covered in FULL - Disability income can be paid if u don't recover fully - Provides death benefits to survivors - REHAB
Social insurance programs have certain characteristics that DISTINGUISH them from other government insurance programs
- Most programs are compulsory (VOLUNTARY) - Programs are designed to provide a floor of income
Employers can comply with state law (4workers comp) by
- Purchasing a workers compensation policy - Self-insuring, or - Obtaining insurance from a monopoly or competitive state fund
Monthly retirement benefits can be paid to the following eligible persons:
- Retired worker - Spouse of a retired worker - Unmarried children younger than age 18 - Unmarried disabled children - Spouse with dependent children younger than age 16
Objectives of Unemployment Insurance
- TO help those who lost their job, find another job - To encourage employers to STABILIZE employment
Social Security and Medicare are faced with serious financial problems
- The combined OASDI trust funds will be exhausted in 2034 - In 2034, non-interest income will be sufficient to pay only about 79 percent of scheduled benefits
Two eligibility requirements must be met to receive benefits: (AD and D)
- The disabled person must work in a COVERED OCCUPATION - The injury or disease must arise out of and in the course of employment
When do you become ELIGIBLE for Social Insurance benefits? (Fully insured)
- To attain a fully (and currently) insured status and be eligible for retirement and survivor benefits, you must have 40 credits (10 yrs)
In 2015, the Social Security portion is % on covered earnings up to a maximum of $118,500 The Medicare portion is ____% on all earned income
6.2% 1.45%
Full retirement age for unreduced benefits is age...
65
Workers compensation
A social insurance program that provides medical care, cash benefits, and rehabilitation services to workers who are injured or sick from job-related accidents or disease (gotta be at work)
Medicare coverages A,B,D
A. Hospital Insurance B. Medical Insurance D. Prescription drug coverage
DEFER means you retire when?
After age 65
Medical prescription drug coverage (Part D)
Available to ALL beneficiaries - Can pay HIGHER premiums to cover exotic drugs - Partially paid by medicare
Who is more likely to pay higher premiums for Workers Comp?
Deep sea fisherman, construction workers
WHat is the "grand bargain"
If u get hurt at your job you no longer have to sue! Bcuz u get paid workers comp (REDUCES LITIGATION)
Hospital Insurance (Part A) provides coverage for
Inpatient hospital stays and other services - inpatient care - hospice - skilled nursing facility - in-home service under certain conditions
______ occupations are covered by workers compensation laws
Most
Can your brother or sister get your social security benefits if you die??
NO
Social programs pay benefits based on ...
Pay benefits based on social ADEQUACY rather than individual equity
Who regulates workers comp?
State government
Survivor benefits
Survivor benefits can be paid to dependents of a deceased worker who is either fully or currently insured Ex. Children under 18/disabled children, surviving spouse, disabled widow, dependent parents
Social insurance programs are paid primarily by ...
THE GOVERNMENT, yet you pay some through taxes
THE BIG issue faced by SS and medicare....
There are a lot of funds to be paid out in annuities and the costs are always increasing
Some beneficiaries who receive monthly cash benefits must pay an ______ ____ on part of the benefits
income tax (depends on your COMBINED INCOME)
Unemployment Insurance
Unemployment insurance programs are federal-state programs that pay weekly cash benefits to workers who are involuntarily unemployed (You get fired or laid-off)
Medical insurance (B)
VOLUNTARY, covers physicians' fees and related medical services (pay a monthly premium IF u want it) - Doctors - Annual deductible - Copay
Currently Insured, eligible for survivor benefits
You have earned at least 6 credits in the past 13 calendar quarters
Medicare
__________ covers the medical expenses of most persons age 65 and older, persons under 65 who have been entitled to Social Security disability benefits for at least 24 months, and persons under 65 who need long-term kidney dialysis treatment or a kidney transplant.
There are usually _______ benefits if you retire at age 62, that reduction amount continues to increase
decreased
A _________ ___ _____ ______ must be satisfied before receiving disability benefits
duration of work test
Part A (Hospital Insurance) is subsidized by a small amount amount of _______ ________
general revenues
Commonly known as Social Security, OASDI is the ______ ________ social insurance program in the United States
most important (covers 9/10 workers)
An employee does NOT have the right to "_____ ____" of the Social Security program
opt out
Social security retirement benefits are an important source of income for most _______ workers
retired