CH. 10 Social Insurance Programs

Social Security

has a redistributive effect, transferring resources from those with high lifetime earnings to those with lower lifetime earnings

Social Security taxes are divided into several trust funds including

1) old-age and survivors insurance OASI 2) the federal disability insurance fund DI

UI consists of

1) regular state-funded benefits, generally provided for 26 weeks 2) a federal/state Extended Benefits program.

Unemployment Insurance (UI)

benefits are provided for max. 26 weeks, but there is an extension program.

OASDI

commonly reffered to as Social Security, is the largest social program and covers 9 out of 10 workers

Social Insurance

differs from public assistance because it requires beneficiaries to make contributions to the system before they can claim benefits.

OASDI

is a federal program administered by the Social Security Administration, which in 1994 become an independent agency headed by a commissioner and a board appointed by the U.S. president for a six-year term

federal Hospital Insurance

pays for services covered under the hospital insurance (Part A) provisions of Medicare

Workers Comp

programs provide cash, medical assistance, rehabilitation services, and disibility & death benefits to persons or their dependents who are victims of industrial accidents or occupational illness

Emergency Unemployment Compensation

workers who exhaust their UI benefits can recieve up to 34 weeks of additional benefits regardless of their states unemployment rate

T/F Social Insurance programs consume far more resources than public assistance.

True

Unemployment Insurance (UI)

is a federal/state program whose objectives are 1) to provide temporary and partial wage replacement to involuntarily and recently unemployed workers, and 2) to help stimulate the economy during recessions by providing the unemployed with the necessary cash to continue to purchase goods and services.

Social Insurance

is universal and all people who contribute recieve benefits regardless of wealth or need.

Social Insurance

programs that are much more costly than public assistance programs

Social Insurance

the major goal is to help maintain income by replacing a portion of lost earnings. It is a pay as you go system, whereby the workers and employers of today pay for those who are retired, ill, or who have lost their jobs.

the federal Supplementary Medical Insurance (SMI)

trust fund that pays for services covered under the medical insurance (Part B) provisions of Medicare

To be eligible for UI a worker must be

unemployed, ready and willing to work, be registered to work with a state employment service, and have been working covered employment during a base eligibility period

Medicare taxes are divided into several trust funds including

1) the federal Hospital Insurance (HI) 2) the federal Supplementary Medical Insurance (SMI)

Social Security Act

Currenty provides for: 1) OASDI 2) UI programs, under federal and state partnership 3) federal assistance to aged, blind, and and disabled under SSI 4) public assistance to families with dependent children (TANF) 5) federal health insurance for the aged (Medicare) 6) federal and state health assistance for the poor (Medicaid)

Social Security Act

The establishment of the modern American welfare state. Spurred on by the Great Depression, President Rossevelt championed a goverment assistance program that whould cover both retired and unemployed workers

Social Insurance

is the cornerstone of U.S. social welfare policy. It is a system in which workers pay taxes (payroll taxes), and the money is set aside in a government trust to be used in times such as job loss, death of family breadwinner, retirement, or disability.

OASDI

largest social program, pays for retirement and survivor benefits. Benefits are based on the beneficiaries earnings during their working years rather than amount of revenue in the trust fund

public assistance

programs that are subject to means test and are based entirely on need

federal disability insurance fund (DI)

provides benefits to the disabled and their families

public assistance

the rationale is grounded in the concept of safety nets designed to ensire that citizens recieve basic services and do not fall below a given poverty level.