Benefits chapters 3 and 4

56. Which of the following statements concerning a worker's primary insurance amount (PIA) under Social Security is (are) correct? I. It is the amount on which benefits for family members are based. II. It is limited to a maximum of $255 A. I only B. II only C. Both I and II D. Neither I nor II

A

All of the following statements concerning the financing of unemployment insurance benefits are correct EXCEPT: A. most state programs are financed primarily by payroll taxes paid by employees. B. the tax rate for a given employer may be reduced if the employer has a stable employment record. C. contributions from a state program are deposited into the state's account in a federal trust fund from which benefits are paid. D. federal funds are available to states to provide additional benefits during times of high unemployment.

A

All the following dependents or former dependents of a covered worker are eligible for a benefit under the retirement portion of the OASDI program EXCEPT a: A. divorced spouse, age 65, who was married to the retired worker for 6 years. B. retired worker's spouse, age 63, who is no longer caring for children. C. retired worker's spouse, age 45, who is caring for a 12-year old daughter of the retired worker. D. Retired worker's unmarried son, age 25, who has been severely disabled since an automobile accident while in junior high school.

A

Retirement income is covered under which of the following letters of the Social Security acronym "OASDHI"? A. OA B. S C. D D. HI

A

The total FICA Percentage paid by employers is: A. 7.65% B. 6.2% C. 1.45% D. 15.3%

A

Which of the following is NOT CORRECT concerning disability benefits through Social Security? A. Payable only for 10 years or less B. To receive benefits employee must be covered for a minimum of 6 quarters (more for older workers) C. Benefits integrated with Worker's Compensation benefits; combined benefits cannot exceed 80% of earnings D. Only received benefits if disability is expected to last at least one year unless disability expected to end in death.

A

Which of the following is covered in the hospital portion of Medicare? A. hospice benefits B. private room coverage C. emergency services outside the United States and its territories or possessions. D. custodial care E. elective cosmetic surgery.

A

Which of the following medical expenses is covered under Part B of Medicare? A. Diagnostic tests B. Custodial nursing care C. Hearing examinations and hearing aids D. Drugs that can be self-administered

A

55. Which of the following statements concerning the financing of Social Security and Medicare is incorrect? A. Payroll taxes are deposited into trust funds from which benefits and administrative costs are paid. B. The tax rate for self-employed persons is one-half of the combined tax rate for employees and employers. C. The earnings base on which taxes are paid will increase based on changes in average wages in the national economy. D. A system of partial advance funding is used.

B

All the following statements concerning benefits under worker's compensation laws are correct EXCEPT: A. rehabilitation benefits are available to restore disabled workers to productive employment. B. medical benefits are usually subject to deductibles and coinsurance. C. burial benefits and cash income payments are available to eligible survivors if a worker is killed on the job. D. disability benefits are frequently paid retroactively to the date of injury if a worker is still disabled after satisfying a waiting period (if exceed a certain period of injury).

B

Unemployment insurance is likely to be granted for which of the following? A. resignation without cause B. layoff due to factory closing C. termination for performance deficiencies D. termination for excessive absenteeism

B

Which of the following is NOT CORRECT concerning retirement benefits through Social Security? A. Full benefits begin at age 67 if born after 1/1/60 B. Reduced benefits beginning at age 60 C. Receive increased benefits if retire beyond full retirement age D. Benefits intended to provide "floor of protection"

B

Which of the following is a distinguishing characteristic of social insurance programs? A. Total employee financing B. Benefits prescribed by law C. Benefits based upon need D. Emphasis on individual equity

B

Worker's compensation benefits are usually financed by: A. employee contributions. B. employer premiums. C. state tax revenue. D. federal tax revenue

B

57. In addition to most persons over age 65, which of the following persons is (are) eligible for Medicare benefits? I. Persons under age 65 who have been entitled to Social Security disability benefits for 24 calendar months. II. Dependents of fully or currently insured workers who require renal dialysis or kidney transplants. A. I only B. II only C. Both I and II D. Neither I nor II

C

58. Which of the following statements concerning Medicare Advantage is (are) correct? I. It may eliminate the need for a beneficiary to purchase a Medicare supplement policy. II. In order to participate, a participant must continue to pay the Medicare Part B premium. A. I only B. II only C. Both I and II D. Neither I nor II

C

All of the following are distinguishing characteristics of social insurance programs EXCEPT: A. compulsory employment-related coverage B. benefits prescribed by law C. benefits based on needs D. emphasis on social adequacy E. partial or total employer financing

C

All of the following statements concerning Part A of Medicare are correct EXCEPT: A. Inpatient hospital care is subject to an initial deductible for each period. B. Hospice benefits may be elected in lieu of inpatient hospital benefits. C. Inpatient hospital care is paid in full over the 60th day of hospitalization. D. Inpatient care in a skilled-nursing facility is available after a patient has been hospitalized for at least 3 days.

C

In addition to most persons over age 65, which of the following persons is (are) eligible for Medicare benefits? I. Persons under age 65 who have been entitled to OASDI disability benefits for 24 calendar months. II. Dependents of fully or currently insured workers who require renal dialysis or kidney transplants. A. I only B. II only C. Both I and II D. Neither I nor II

C

Which of the following is most likely to be a condition that will result in the payment of unemployment compensation benefits? A. Unemployment because of a labor dispute. B. Unemployment as a result of voluntarily leaving a job without good cause. C. Unemployment due to adverse economic conditions. D. Unemployment resulting from discharge due to misconduct.

C

Which of the following statements concerning unemployment insurance benefits is correct? A. Benefits are a flat amount regardless of a worker's wages. B. Because of federal legislation, the maximum benefit is the same in all states. C. Most states pay regular benefits for a maximum duration of 26 weeks. D. Extended benefits are paid by the federal government for up to 2 years after a worker's regular benefits, are exhausted.

C

59. Which of the following statements concerning Medicare prescription drug coverage (Part D) is (are) correct? I. It is a mandatory plan for all Medicare beneficiaries. II. It is financed by the FICA taxes paid by active workers. A. I only B. II only C. Both I and II D. Neither I nor II

D

60. Which of the following statements concerning temporary disability laws is (are) correct? I. Benefits must be equal to 100 percent of an employee's average weekly wage for some period prior to disability. II. The entire cost of coverage must be borne by the employer. A. I B. II only C. Both I and II D. Neither I nor II

D

All of the following are reasons for social insurance programs EXCEPT to: A. solve major social problems. B. provide a base of economic security. C. provide coverage for perils that are difficult to insure in the private sector. D. provide competition to the private insurance industry

D

Which of the following is CORRECT concerning Medicare benefits provided through Social Security? A. Covers persons' age 60 and over and long-term (2-years) disabled. B. Part A - refers to Medical (non-contributory) C. Part B - refers to Hospital (non-contributory) D. In 2018, the contributory premium amount in Part B for most people was $134

D

Which of the following statements concerning disability benefits under OASDI is correct? A. There is a one-year waiting period before benefits are payable. B. Benefits are payable as long as the disabled worker is unable to perform his or her regular occupation. C. Benefits are payable only if the condition causing the disability is expected to result in death prior to age 65. D. In addition to the worker's disability benefit, benefits can be paid to eligible dependents.

D

Which of the following is NOT CORRECT concerning survivor benefits through social security? A. Given to widows and widowers age 60 and over B. Given to dependent children to age 18 (19- if a full-time student) C. Given to dependent parents age 62 and over D. Given to widows and widowers (any age if caring for dependent children (under age 16)) E. Given to widows and widowers regardless if they remarry (as long as remarry before 60).

E

Social Security (OASDI) wage base was 121,000 in 2018.

F, $128,000 (2018)

With supplementary medical insurance in Medicare, there is a $200 annual deductible in 2018.

F, $183

Unemployment wage base for Federal Unemployment insurance tax in 2018 was $9,000.

F, $7,000

In the hospital insurance portion of Medicare, skilled nursing benefits up to 90 days of coverage is provided

F, 100 Days, first 20 paid in full; remaining 80 are subject to daily coinsurance charge

In 2018, a worker receives one quarter of coverage for each $10,000 of covered wages in a calendar year.

F, 1320 per quarter

Six workers now support each Social Security beneficiary.

F, 2.8 workers

After deductible, you pay 25% of supplementary medical insurance

F, 20%

Up to 10 quarters of coverage can be earned in a single year.

F, 4 quarters

OASDI percentage is 7.65%.

F, 6.2%

With Medicare, you pay an initial deductible and then Medicare pays the full cost of the remaining charges for the first 90 days per occurrence of illness.

F, 60 day occurrence

For a spouse to receive disability benefits, he/she must be 65 or older (assume no children).

F, 62

Retirement income is covered under the "S" of the Social Security acronym, "OASDHI"

F, OA

Worker's Compensation is administered at the Federal rather than State level.

F, State

Dependent, unmarried children are only eligible for Social Security Survivor's benefits if and only if the employee was fully insured at the time of death.

F, fully or currently insured at the time of death

Social Security has a more stringent definition of disability for persons who are blind and age 55 or over.

F, less

To be currently insured, you must be under 30 and have 8 out of 13 of the previous quarters.

F, must be under 30 and have 6/13 previous quarters

To be disability insured, you need credit for 25 of the last 40 quarters ending with the quarter in which disability occurs. (When answering this question, assume person is 31 years old or older).

F, need credit for 20 of the last 40 quarters ending with the quarter in which disability occurs

Maximum HI withholding in 2018 was $128,400.

F, no limit

A parent age 62 or over, who was dependent on the deceased worker at the time of death, is only eligible for Social Security Survivor's Benefits if the deceased worker was currently insured.

F, only if fully insured

One of the arguments against social insurance programs results from the ease of privately insuring catastrophic losses.

F, this is an argument FOR social insurance programs

53. Medicare benefits are received tax-free.

T

54. One-fourth of benefit dollars go for Social Insurance

T

As income increases, Social Security income replacement percentages decrease.

T

Effective tax rate for Federal Unemployment is .6%

T

HI percentage is 1.45%.

T

It will take approximately 5 years for current retirees to receive benefits equal to their total contributions.

T

Normally, a disability must have lasted over 5 months and be expected to last over 12 months or last over 5 months and be expected to result in death to be defined as a disability by Social Security.

T

Over 95 percent of workers are covered under Social Security, and over 98 percent under Medicare.

T

Part B of Medicare refers to supplementary medical insurance.

T

Social Security permanently reduces benefits if you retire before your full retirement age.

T

Tax rates in most states for Unemployment range from .1-8.1%.

T

There is no limit to the Medicare (HI) wage base.

T

To be fully insured, you need only one-quarter for each year after you have attained age 21 and prior to the current year (assumes at least 6 quarters of coverage).

T