social security Flashcards
What does it mean to be fully insured?
a worker must earn 40 quarters of coverage
a quarter of coverage is based on a dollar amount of earnings
if a retiree delays their benefit, each year they get an increase of ____?
8%
how is social security taxed?
up to 85% may be taxed
thresholds are based upon combined income (aka AGI, nontaxable interest, foreign earned income, 1/2 of retirement benefit
What is the definition of disabled in order to get social security?
there is severe physical or mental impairment for 5 months that is expected to prevent the worker from performing substantial work for at least one year or result in death
benefits begin in the 6th month following the 5 month waiting period
benefit is based off of credits earned and age of the worker when disabled
when does medicare start?
65 years old
What is Medicare Part A?
hospital insurance
places include inpatient hospital care and home health care
semi private room, meals, operating and recover room, lab tests, xrays
hospice coverage
skilling nursing care facility FOLLOWING a covered hospital stay
What is Medicare Part B?
covers doctor visits, lab tests, ambulance, outpatient therapy, clinical research, durable medical equipment, mental health, getting a second opinion before surgery and home health care
covers an initial preventative visit and annual wellness visit
insured is automatically enrolled in Part B unless they opt out
What does Medicare Part B NOT COVER?
dental care, dentures
cosmetic surgery
hearing aids
eye exams
What is Medicare Part C?
Medicare Advantage
- must own Part A and Part B
- coverage includes vision, dental, hearing
What is Medicare Part D?
Provides prescription drug coverage benefits
What is Medicare Supplemental Insurance?
sold by private insurance companies and is designed to offset costs associated with Medicare deductibles and coinsurance
How does one apply for Medicare?
if they are already receiving social security at 65, then they are automatically enrolled in Medicare
if they are not receiving social security at 65, then they must enroll
Does Medicare provide coverage in foreign countries?
NO - except for these 3 situations:
1. youre in the US when you have a medical emergency and the foreign hospital is closer than the nearest US hospital
2. youre traveling through Canada from Alaska to the US when a medical emergency occurs and a Canadian hospital is closer than the nearest US hospital
3. you live in the US and the foreign hospital is closer to your home than a US hospital, regardless of whether it is an emergency or not
How much is the medicare tax?
1.45% on all wages
how much is the OASDI tax?
6.2% on wages up to the wage base of $147k in 2022
