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Fundamentals and Insurance > Social Security (Lesson 4) > Flashcards

Social Security (Lesson 4) Flashcards

1
Q

Social Secuirity is funded through

A
  • FICA (Federal Insurance Contributions Act)
  • SECA (Self employed Contributions act)
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2
Q

What percentage of wages are taxed

A
  • 6.2% on wages up to the wage base ($142,800 for 2021)
  • 1.45% on all wages
  • 0.9% Medicare surtax on wages and self employment income over the threshold
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3
Q

Who are covered employees by OASDI

A
  • Federal employees hired since 1984
  • US Armed Forces
  • Self emloyed persons
  • Employees of nonprofit organizations
  • hospital interns
  • domestic workers
  • farmer and agricultural workers
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4
Q

Who are not covered employees by OASDI

A
  • Federal Employees hired prior to 1984
  • Railroad employees
  • ministers
  • student nurses
  • newspaper delivery persons under 18
  • students working for college or club
  • Family employees
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5
Q

What are the different categories of social security benefits

A
  • Retirement benefit
  • Disability benefits
  • Death benefits
  • Survivor Benefits
  • Medicare
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6
Q

What is the normal or full retirement age if born before 1938

A
  • 65 years old
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7
Q

What is the normal or full retirement age if born between 1938 - 1942

A
  • Add 2 months per year to 65
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8
Q

What is the normal or full retirement age if born between 1943 - 1954

A
  • 66 years old
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9
Q

What is the normal or full retirement age if born between 1955 - 1959

A
  • add 2 months per year to 66
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10
Q

What is the normal or full retirement age if born in 1960 or later

A
  • 67 years old
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11
Q

How much are benefits reduced in the first three years a individual retires early

A

5/9 of 1% for each month

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12
Q

If retired more than 3 years how much are the benefits reduced

A
  • 5/12 of 1% for each month for a maximum of 30%
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13
Q

To qualify for retirement benefits a worker must be

A
  • fully insured
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14
Q

What does fully insured mean

A
  • 40 quarters of coverage
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15
Q

How much does 1 quarter of coverage equal to in wages for 2021

A
  • $1,470 in wages subject to Social Security
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16
Q

How much do a retirees benefits increase each year a retiree delays benefits

A

8%

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17
Q

Who are considered Social security beneficiaries

A
  • A disabled insured worker under age 65
  • A retired insured worker age 62 or older
  • A spouse of a retired or disabled worker who is at least 62 or is caring for a child under age 16 or disabled child
  • A divorced spouse of a retired or disabled worker if the ex spouse is age 62 and was married to the worker for at least 10 years and did not remarry
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18
Q

How much is a SS benefit reduced if a person is above the earnings threshold and below full retirement age

A
  • $1 for every $2
  • Threshold amount is $18,960 (annual limit, monthly test)
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19
Q

How much is the SS benefit reduced if a person is at the year of full retirement age and above the earnings thresold

A
  • Benefit is reduced $1 for every $3 above threshold
  • $50,250 (annual, limit monthly test)
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20
Q

What is the maximum that a social security benefit can be taxed

A
  • 85%
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21
Q

What are the thresholds based on for SS benefits

A
  • Combined Income
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22
Q

What does Combined income include

A
  • AGI
  • Nontaxable interest
  • Foreign earned income
  • 1/2 of retirement benefit
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23
Q

Hurdles for Social Security benefits

MFJ/ Single - First Hurdle

MFJ/ Single - Second Hurdle

A

First Hurdle Single

  • $25,000 MFJ - $32,000

Second Hurdle

Single - $34,000 MFJ - $44,000

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24
Q

When are you considered disabled for Social Security

A
  • 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 results in death
25
Q

What is the benefit determined on for SS disability income

A
  • Credits earned and the age of the worker when disabled
26
Q

(When is a worker eligible for disability income for SS)

Age 31 and greater

A
  • Worker is fully insured (40 quarters) and earned 20 quarters in the last 40 quarters
27
Q

(When is a worker eligible for disability income for SS)

Between age 24 - 30

A
  • Worker has earned 1/2 of quarters available since age 21 to disability
28
Q

(When is a worker eligible for disability income for SS)

Age 21- 24

A
  • Worker has earned 6 quarters in the last 12 quarters
29
Q

When are Survivorship benefits eligible

A
  • Worker must be either fully insured (40 quarters) or
  • Currently insured (at least 6 quarters of coverage in the last 13 quarters)
30
Q

What is currently insured for survivorship eligibility

A
  • at least 6 quarters of coverage in the last 13 quarters
31
Q

What is fully insured for survivorship eligibility

A
  • 40 quarters
32
Q

What ages does a child have to be in order to be eligible for survivorship benefits

A
  • under 18
  • under 19 if in high school
  • disabled prior to age 22
33
Q

When is spouse eligible for benefits

A
  • has a child under age 16 whether currently insured or fully insured
  • if no child worker must be fully insured
34
Q

Is the spouse of a currently insured worker covered

A
  • No
35
Q

What is Medicare benefits

A
  • Federal health insurance for people 65 and older
36
Q

Can a spouse qualify based on the other spouses work record

A
  • Yes at age 65
37
Q

What are the three parts of medicare

A
  • Part A
  • Part B
  • Part D
38
Q

When is an eligible person automatically enrolled in Medicare

A
  • receiving retirement benefits
  • Any age if receiving SS disability for at least 2 years
39
Q

What is Medicare Part A cover

A
  • Considered hospital insurance

Covers:

  • inpatient hospital care and home health care
  • semi private room, meals, operating and recovery room, lab tests, x rays
  • hospice coverage
  • skilled nursing care following a covered hospital stay
40
Q

When does a benefit period for Medicare part A begin and end

A
  • begins on the first day the insured is in the hospital
  • ends after 60 days of no further skilled care
41
Q

What is the deductible for Medicare per benefit period

A
  • $1,484
  • Only amount owed in the first 60 days
42
Q

What is owed beyond the first 60 days of Medicare

A
  • Coinsurance amounts apply
43
Q

What is the coinsurance amount for Medicare days 61-91

A
  • $371 per day
44
Q

What is the coinsurance amount for Medicare days 91-150

A
  • $742 for each lifetime reserve day
45
Q

How much of skilled nursing is covered under medicare

A
  • First 20 days following a hospital stay are 100% covered
  • $185.50 per days 21-100
46
Q

How many lifetime reserve days are there for medicare

A

60 days

47
Q

Are custodial care services provided beyond the 60th day for medicare

A
  • No
48
Q

What does Medicare Part B cover

A
  • coverage for doctors visits, lab tests, ambulance, outpatient therapy, clinical research, durable medical equipment, mental health, getting a second opinion before surgery, and home health care
49
Q

What does Medicare Part B not cover

A
  • Dental care (Dentures)
  • Cosmetic surgery
  • Hearing aids
  • Eye exams
50
Q

When is an individual enrolled in Medicare Part B

A
  • Automatically unless they opt out
51
Q

What is the standard premium for Medicare part B and how is it paid

A
  • $148.50
  • deducted from SS benefits
52
Q

When are premiums higher for Medicare part B

A
  • Individuals with income above:
  • Single: $88,000
  • MFJ: $176,000
53
Q

What is the deductible for Medicare Part B and what happens after deductible is reached

A
  • $203 per year
  • 80% covered and there is no stop loss
54
Q

What is Medicare Part C

A
  • Medicare Advantage
  • Must own Part A and Part B
  • Coverage similar to HMO, PPO, or POS plans
  • Coverage includes vision, dental, hearing
55
Q

What is Medicare Part D

A
  • Provides prescription drug coverage
56
Q

What is Medicare Supplemental Insurance

A
  • Sold by private insurance companies and is designed to offset costs associated with Medicare deductibles and coinsurance
57
Q

Is a person automatically enrolled for Medicare at 65 if they are not receiving SS benefits

A
  • No
58
Q

Does Medicare cover services provided outside of the US

A
  • No but there are three exceptions
59
Q

What are the three exceptions for Medicare coverage outside the US

A
  • You are in the US when you have a medical emergency and the foreign hospital is closer than the US hospital
  • You are traveling through Canada without unreasonable delay by the most direct route between Alaska and another state when the emergency occurs and Canadian hospital is closer
  • Live in US and the foreign hospital is closer to your home than the nearest US hospital regardless of whether it is an emergency or not

Fundamentals and Insurance (10 decks)

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