Insurance Ch 18
A serious current concern with the Social Security program is the depletion of the Disability Income Trust Fund. Each of the following contributed to the depletion of the fund EXCEPT
changing to a less stringent definition of disability.
One insured status under Social Security requires you to have earned at least six credits during the last 13 calendar quarters ending with the quarter of death, disability, or entitlement to retirement benefits. This insured status is
currently insured.
Marco, a risk manager in California, is interviewing for a new position in the state of Washington. When Marco asked about methods of providing workers compensation, the answer surprised him. In Washington, employers can self-insure the risk or obtain coverage through a state fund. Private insurers do not market workers compensation insurance in Washington. Washington uses a
monopoly state fund.
Which of the following statements concerning Medicare Prescription Drug Plans is (are) true? I. The monthly premium is based on the health status of the beneficiary and the number of prescriptions the beneficiary needs. II. After the beneficiary has paid an initial deductible, Medicare pays the entire cost of all prescription drugs the beneficiary needs.
neither I nor II
An important current issue in state workers compensation programs is the overuse of a certain category of pain-killing drugs. These drugs have been associated with drug overdoses and drug addiction. This category of drugs is called
opiates.
Beth was injured at work and is eligible to receive workers compensation benefits. All of the following benefits are provided under workers compensation EXCEPT
retirement benefits for dependents.
In order to receive unemployment insurance benefits, an unemployed worker must meet all of the following eligibility requirements EXCEPT
satisfy a 6-month waiting period.
Frank is doing some life insurance planning. A financial advisor said, "be sure to consider Social Security when examining sources of funds available for family support if you die." The financial advisor was referring to which Social Security benefit?
survivor benefits
Under the Medicare Prescription Drug Program, a coverage gap (also called a "donut hole") exists after the beneficiary and drug plan pay a certain amount for covered drugs. The coverage gap refers to
the temporary gap in coverage that begins when the beneficiary and drug plan pay a certain amount for covered drugs during the year and ends when the catastrophic limit is reached and coverage resumes.
Which of the following statements about benefits provided by workers compensation programs is true?
Death benefits and benefits to eligible survivors are payable if a worker is killed on the job.
Which of the following statements regarding the Emergency Unemployment Compensation (EUC) program is true?
EUC benefits are funded entirely by the federal government.
As of this year, Brad, age 50, has 40 credits under the Social Security program. These credits were all earned in the last 10 years. What is Brad's insured status under the program?
He is currently and fully insured.
Under Part A of Medicare, how is reimbursement for inpatient hospital care determined?
Hospital care is classified into diagnosis-related groups (DRGs) and the amount reimbursed depends on the DRG classification of the care delivered.
Which of the following statements about participation in the Social Security program is (are) true?I. Most private sector employees are covered under the Social Security program. II. Each employee has the right to "opt out" of the Social Security program if the employee does not wish to participate in the program.
I only
Which of the following statements about the financing of OASDI and Medicare is (are) true?I. There is a maximum taxable wage base for OASDI.II. There is a maximum taxable wage base for Part A of Medicare.
I only
Which of the following statements about taxation of Social Security retirement benefits under federal law is (are) true?I. Social Security retirement benefits are never considered taxable income.II. Up to 85 percent of Social Security retirement benefits may be considered taxable income, depending on the amount of other income received by the beneficiary.
II only
Which of the following statements is (are) true with respect to the Medicare Advantage Plans? I. These plans replace the original Medicare program, Parts A and B, which are no longer available to new retirees.II. These plans provide an opportunity for retirees to receive Medicare coverage through private health care plans.
II only
Which of the following statements about the impact of the implementation of the Affordable Care Act (ACA) on workers compensation is true?
Implementation of the ACA will create higher healthcare provider prices.
Which of the following statements about unemployment insurance benefits is true?
Most states pay regular benefits for a maximum duration of 26 weeks
Which of the following statements about the financing of unemployment insurance benefits is true?
Part of an employer's contribution is used for administrative expenses, to fund extended benefits, and to maintain a loan fund that can be drawn upon if the state's account is depleted.
Marion owns substantial financial assets. She was surprised that she qualified for Social Security retirement benefits when she retired because of her high investment income. What characteristic of social insurance programs is Marion overlooking with respect to her Social Security retirement benefits?
Social insurance benefits are not means tested.
Which of the following statements about the financing of the Social Security program is (are) true?I. Although the self-employed pay an OASDI tax rate that is twice the employee rate, they are allowed certain deductions that reduce the effective tax rate.II. The earnings base on which OASDI taxes are paid increases annually based on changes in average wages in the national economy.
both I and II
Which of the following statements about the problems and issues of unemployment insurance programs is (are) true?I. Many state programs are inadequately financed.II. Only a small portion of the total unemployed receive benefits at any time.
both I and II
As an alternative to the Original Medicare Plan, beneficiaries can elect to enroll in private health insurance plans that cover all services that the Original Medicare Plan covers except hospice care. These private health insurance plans that are an alternative to the Original Medicare Plan are called
Medicare Advantage Plans.
Which of the following statements about the characteristics of social insurance programs is true?
They are designed to provide a floor of income with respect to the risks that are covered.
Tony is 48 years old. He earned the maximum taxable wage base under Social Security annually between the time when he was 26 and when he was 40. At age 40, he dropped out of the workforce to care for children as his wife had a high-paying job. Which statement is true regarding Tony's insured status under Social Security?
Tony is fully insured, but not currently insured.
All of the following persons are eligible for a benefit under the retirement portion of the Social Security program EXCEPT
a divorced spouse, age 55, who was married to the retired worker for 6 years.
All of the following persons are eligible for survivor benefits under Social Security EXCEPT
a surviving brother or sister, age 60 or older.
All of the following changes would reduce the long-range deficit for the Social Security program EXCEPT
delay scheduled increases in the full retirement age.
EFG Company experienced a reduced demand for its products during a recession. EFG managers were considering laying off some workers when the personnel director said, "Let's not lay off these workers. If we do, our unemployment insurance premiums will increase. The state considers employment stability when determining our premium." Considering the firm's employment record when determining the rate to charge for unemployment insurance is called
experience rating.
Which of the following would help to reduce the long-range OASDI actuarial deficit?
increasing the payroll tax rate
