Chapter 7

Question 1

OASDHI

Answer 1

The Old Age, Survivors, Disability, and Health Insurance program of the federal government. This program consists of Social Security and Medicare

Question 2

Fully Insured

Answer 2

An insured status under Social Security. This status requires either (1) 40 credits or (2) at least as many credits (Min. 6) as there are years elapsing after 1950 (or after the year in which age 21 is reached, if later) and before the year in which a person dies, becomes disabled, or reached age 62, whichever occurs first.

Question 3

Currently Insured

Answer 3

An Insured status under Social Security that requires a person to have at least six credits during the thirteen calendar quarters ending with the quarter in which death occurs

Question 4

Disability Insured

Answer 4

The insured status under Social Security necessary to receive disability benefits. It requires that a worker (1) be fully insured and (2) have had a minimum amount of work under Social Security within a recent period.

Question 5

Full retirement Age

Answer 5

The age at which a worker can retire under Social Security and receive non reduced benefits equal to his or her primary insurance amount (PIA). Also referred to as normal retirement age.

Question 6

Primary Insurance Amount (PIA)

Answer 6

The amount a worker will receive under Social Security if he or she retires at full retirement age or becomes disabled. It is also the amount on which all other Social Security income benefits are based.

Question 7

Earnings Test

Answer 7

The process for determining whether income benefits of Social Security beneficiaries under the full retirement age should be reduced because of earned income that exceeds a specified amount that is subject to annual indexing.

Question 8

Social Security Statement

Answer 8

An annual statement automatically issued by the Social Security Administration that enables an employee to verify his or her contributions to the Social Security and medicare Programs. The statement also contains an estimate of benefits that will be available because of retirement, disability, or death.

Question 9

Medicare Part A

Answer 9

Part of Medicare program that provides benefits for expenses incurred in hospitals, skilled-nursing facilities, and hospices.

Question 10

Medicare Part B

Answer 10

Part of medicare program that provides benefits for most medical expenses not covered under Part A

Question 11

Original Medicare

Answer 11

The term used to describe the traditional Medicare Parts A and B

Question 12

Medicare Advantage

Answer 12

Part C of Medicare program, previously known as Medicare + Choice, that allows beneficiaries to select HMOs and other alternatives to the traditional Medicare program.

Question 13

Medicare Part D

Answer 13

Part of mMdicare program that provides for prescription drug coverage

Question 14

Coverage Gap (Doughnut Hole)

Answer 14

Under Medicare prescription drug plans, the range in which the beneficiary must pay the full cost of prescription drugs. Under a standard benefit structure, the gap begins after a beneficiary has incurred a specific dollar amount of expenses and continues until the plan begins paying again after total drug costs reach a second specific dollar amount. Also called doughnut hole.

Question 15

Formulary

Answer 15

A list or preferred medications that a prescription drug plan will cover

Question 16

Creditable Prescription Drug Coverage

Answer 16

A prescription drug coverage under other plans that is deemed to be equivalent to or better than the standard benefit plan for Medicare prescription drug coverage.

Question 17

State Health Insurance Plan (SHIP)

Answer 17

A state program that gets money from the federal government to give free health insurance counseling and assistance to people with Medicare.

Question 18

Partial Advance Funding

Answer 18

The funding method used by Social Security and Medicare whereby taxes are more than sufficient to pay current benefit and thus provide some accumulation of assets for the payment of future benefits.

Question 19

Unemployment Insurance

Answer 19

Join federal and state programs to provide income benefits to unemployed workers who meet the specific program requirements. In most states, these programs are financed entirely by employer contributions.

Question 20

Temporary Disability Law

Answer 20

A law in a few states that requires employers to provide short-term disability income benefits to employees for non-work-related disabilities. Often referred to as nonoccupational disability law.

Question 21

Workers’ Compensation Law

Answer 21

A type of law enacted in all states under which employers are required to provide benefits to employees for losses that result from work-related accidents or diseases. Benefits include medical care, disability income, income for survivors, and rehabilitative services.