Deck 7: Government-Mandated Social Security Programs

Question 1

Part A coverage automatically qualifies an individual to enroll in Part B coverage for a monthly premium.(Eligibility Criteria for Medicare Benefits)

Answer 1

True

Question 2

The largest share of the FICA tax funds OASDI programs.(Financing OASDI and Medicare Programs)

Answer 2

True

Question 3

Medicare Part A only covers outpatient hospital care and services.(Medicare Part A Coverage)

Answer 3

False

Question 4

Based on the 2015 report on the status of Medicare,the projected date of the Medicare trust fund exhaustion is 2050.(Financing OASDI and Medicare Programs)

Question 5

The Unemployment Compensation Act of 2008 expanded the EUC benefits to 20 weeks nationwide.(Unemployment Insurance Benefit Amounts)

Question 6

Self-employed individuals must pay a FICA rate that is twice as much as a factory worker has to pay.(Financing OASDI and Medicare Programs)

Question 7

The national federal-state unemployment insurance program provides weekly income to individuals who become unemployed for any reason.(Unemployment Insurance)

Question 8

Medicare Part D was first offered in 2004.(Medicare Prescription Drug Benefit)

Question 9

Social Security disability benefits are available to disabled workers who are unable to work as a result of a serious medical impairment that lasts at least 12 months.(Disability Benefits)

Question 10

The Social Security Act was amended in 1965 to create the Medicare program.(Medicare)

Question 11

The Social Security Administration increases retirement benefits by a designated percentage for each month worked beyond full retirement until age 70.(Old-Age Benefits)

Question 12

In general,an employee must earn at least 30 credits to be eligible to receive retirement benefits.(Qualifying for OASDI Benefits)

Question 13

Medigap insurance supplements Medicare Parts A & B and is available from private insurance companies.(Medigap Insurance)

Question 14

In 2016,6.2% of employer and employee contributions were set aside from FICA to fund OASDI programs.(OASDI Programs)

Question 15

In 2015,more than 64 million Americans received Social Security benefits.(Employers Required to Participate in Social Security Programs)

Question 16

The Medicare tax is subject to a taxable wage base.(Financing OASDI and Medicare Programs)

Question 17

Social Security pays only for total disability.(Disability Benefits)

Question 18

An employee's average indexed monthly earnings determines the initial primary insurance amount for OASDI benefits.(Determining Benefit Amounts)

Question 19

The Social Security Administration pays monthly survivor benefits at a level ranging from 71.5% to 100% of the primary insurance amount.(Survivor Benefits)

Question 20

Most states impose a waiting period,usually two weeks following submission of a claim,prior to paying unemployment benefits.(Eligibility Criteria for Unemployment Insurance Benefits)

Question 21

In general,a worker needs to have accumulated at least 50 credits to qualify family members for survivor benefits.(Survivor Benefits)

Question 22

The Social Security Administration only issues Social Security numbers to U.S.citizens.(Social Security Numbers)

Question 23

The state share of unemployment taxes may be used only for benefit costs.(Administration of Social Security Programs)

Question 24

The Social Security Administration defines disability as an inability to engage in any substantial gainful activity because of a medically determinable physical or mental impairment that is expected to result in death,or that has lasted for a continuous 12 months.(Disability Benefits)

Question 25

The Social Security Administration is the only federal agency overseeing Social Security programs.(Administration of Social Security Programs)

Question 26

Employees forfeit Social Security credits when they change jobs or become unemployed.(Qualifying for OASDI Benefits)

Question 27

The age for collecting full Social Security retirement benefits is gradually increasing from 65 to 67 over a 22-year period ending in 2022.(Old-Age Benefits)
36,Analysis suggests that,based on an average life expectancy,taking a lower monthly benefit sooner would lead to earning about the same total benefit over one's lifetime as an individual who put off retirement to claim a higher monthly benefit.(Old-Age Benefits)

Question 28

Social Security retirement funds are expected to remain sustainable in the coming decades.(Financing OASDI and Medicare Programs)

Question 29

Stepchildren,grandchildren,or adopted children are not considered as eligible for survivor benefits.(Survivor Benefits)

Question 30

This Medicare program offers voluntary supplemental medical insurance.(Medicare Part B Coverage)

A)Medicare Part B
B)Medicare Part A
C)Medicare Advantage
D)Medicare Part C

Question 31

Effective 2016,what was the annual increase in Social Security benefits? (Determining Benefit Amounts)

A)1%
B)no increase
C)7.2%
D)9%

Question 32

Social Security programs were geared toward promoting the social good,which refers to a booming economy,low levels of unemployment,progressive wages and benefits,and safe and healthful working condition.(Government-Mandated Social Security Programs)

Question 33

Coverage rules are the same across OASDI,Medicare,and the unemployment insurance programs.(Employers Required to Participate in Social Security Programs)

Question 34

Medicare Select plans are Medigap policies that present higher premiums.(Medigap Insurance)

Question 35

In 2016,how much did an employee have to make to earn a credit for OASDI? (Qualifying for OASDI Benefits)

A)$1500
B)$2240
C)$1200
D)$1260

Question 36

OASDI is the abbreviation for the term Old-Age,Survivor,and Disability Income.(Introduction to the Social Security Programs)

Question 37

Automatic cost-of-living adjustments are applied to OASDI benefits to guard against inflation.(Determining Benefit Amounts)

Question 38

A percentage of annual wages is one of the methods states use to calculate weekly unemployment benefit amounts.(Unemployment Insurance Benefit Amounts)

Question 39

Medicare Part D was established by the Medicare Prescription Drug Improvement and Modernization Act of 2003.(Medicare Prescription Drug Benefit)

Question 40

The original Medicare plan is a fee-for-service plan managed by the federal government.(Medicare)

Question 41

Funding for OASDI and Medicare programs requires equal employer and employee contributions under the _________.

A)Fair Labor Standards Act of 1938
B)Federal Insurance Contributions Act
C)The Social Security Act of 1935
D)Titles III and IX of the Social Security Act
Essay Questions

Question 42

Which of the following is not one of three methods states use to calculate weekly unemployment benefit amounts? (Unemployment Insurance Benefit Amounts)

A)A fraction of the highest wages for a calendar quarter earned during the base period.
B)A percentage of annual wages.
C)A percentage of the average weekly wage earned during the base period.
D)A percentage of the average monthly wages earned during the base period.

Question 43

The state unemployment employer tax rate varies according to ______ system.(Unemployment Insurance Benefit Amounts)

A)an experience rating
B)a duration of work
C)an average indexed monthly earnings
D)a fully insured

Question 44

In 2016,approximately,what was the average monthly survivor benefit for a widowed and two children? (Survivor Benefits)

A)$1,860
B)$2,120
C)$2,680
D)$3,210

Question 45

Which of the following is not one of the factors believed to have hastened the deterioration of the OASDI and Medicare trust funds? (Financing OASDI and Medicare Programs)

A)longer life expectancy
B)increased insurance claims
C)high levels of unemployment
D)immigration

Question 46

In 2015,what was the annual monthly benefit for all retired workers? (Old-Age Benefits)

A)$855
B)$1,000
C)$1,335
D)$1,754

Question 47

Which of the following Medicare coverage would cover physical therapy,occupational therapy,and speech-language therapy ordered by a doctor? (Medicare Part A Coverage)

A)Medicare Part B
B)Medicare Part A
C)Medicare Part D
D)Medicare Part E

Question 48

Which Medicare program provides beneficiaries the opportunity to receive health care from a variety of options? (Medicare Part C: Medicare Advantage)

A)Medicare Advantage
B)Medigap
C)Medicare Part C
D)Medicare Select

Question 49

The Social Security Administration defines "gainful" work activity as all of the following,except: (Disability Benefits)

A)Work intended for profit,whether or not a profit is realized.
B)Work performed for pay or profit.
C)Work performed full-time.
D)Work of a nature generally performed for pay or profit.

Question 50

Describe how OASDI and Medicare programs are financed.(Financing OASDI and Medicare Programs)

Question 51

List and define the three parts of the OASDI program.(Old-Age,Survivor,and Disability Insurance (OASDI))

Question 52

OASDI taxes are subject to a taxable wage base.What was the taxable wage base for everyone in 2016? (Financing OASDI and Medicare Programs)

A)$80,100
B)$118,500
C)$120,100
D)$140,100

Question 53

Briefly discuss the eligibility criteria for unemployment insurance benefits? (Eligibility Criteria for Unemployment Insurance Benefits)

Question 54

In 2016,what was the average monthly disability benefit for all disabled workers? (Disability Benefits)

A)$540
B)$1,166
C)$2,245
D)$3,450

Question 55

Which of the following statements is true when comparing workers' compensation with Social Security disability and survivors' benefits? (Disability Benefits)

A)Worker's compensation pays for medical care for work-related injuries.
B)Workers' compensation does not pay for permanent partial or permanent total disability.
C)Social Security pays benefits for permanent partial or permanent total disability.
D)Social Security payments do not have a waiting period.

Question 56

Which of the following is the state unemployment tax? (Unemployment Insurance Benefit Amounts)

A)FICA
B)FUTA
C)SUTA
D)COLA

Question 57

What is the amount of contribution employer and employees must make to the Medicare tax which supports Medicare Part A? (Financing OASDI and Medicare Programs)

A)1.45%
B)50%
C)3%
D)4%

Question 58

Which of the following are not covered by Medicare Part B? (Medicare Part B Coverage)

A)Outpatient care
B)Hospitalization
C)Laboratory services
D)Health screenings

Question 59

Which of the following are eligible for OASDI? (Employers Required to Participate in Social Security Programs)

A)Self employed individuals
B)Federal government workers
C)10 year railroad employees
D)Children under 18

Question 60

At what age are retirees first eligible for Social Security benefits? (Old-Age Benefits)

A)65
B)62
C)70
D)67

Question 61

Explain the concept of the coverage gap within the Medicare prescription drug benefit,or Medicare Part
D.(Medicare Prescription Drug Benefit)

Question 62

Briefly discuss Medicare Part A coverage.(Medicare Part A Coverage)