Lesson 62 - unit 13 Flashcards
What was the original intention of social security?
To provide retirement benefits for workers and survivor benefits to families of deceased workers.
How are Social Security retirement benefits calculated?
On the basis of a worker’s income during his years of work.
What is supposed to happen if social security payments exceed revenue?
The SSA goes to the Treasury Department to redeem bonds. The Treasury pays the bonds off with money from general Federal revenues.
What are 3 reasons why Social Security is facing disaster?
- Retirees are living longer
- Money in the system is declining
- An increase in the number of people wanting benefits
What should each generation be able to understand about its contributions to Social Security?
That they are providing for their own retirement and not paying for another generation’s.
What are 3 elements of the Medicare program?
- Medical coverage for Americans 65+
- Young people who are permanently disabled
- Prescription drug benefit
What was the estimated cost for Medicare in 2009?
$480 billion
How were the Medicare expenses in 2009 paid?
- Pay roll taxes
- premiums paid by participants
- Federal tax revenues
- Other sources
What does it mean that Medicare is a fee-for-service program?
The more medical services a doctor orders, the more the doctor gets paid because payment is made for each service.
Why is Medicare insulated from market forces?
It has no viable competiton.
