Hs 311 Insurance, Ch 7--T/f

Front 1

A shortcoming to the Social Security program is that it covers slightly less than 75 percent of working persons.

Back 1

False. Over 95 percent of working persons are covered under Social Security. Those who do not participate may be covered under other programs.

Front 2

A person born in 1962 will be eligible to receive full Social Security retirement benefits when he or she reaches age 65.

Back 2

False. A person born in 1962 will be eligible to receive full Social Security benefits when he or she reaches age 67.

Front 3

The definition of disability under Social Security is very rigid.

Back 3

True

Front 4

The primary insurance amount is the amount of the Social Security benefit a worker will receive if he or she retires at full retirement age or becomes disabled.

Back 4

True

Front 5

A family will usually reach the maximum benefit under Social Security if three or more family members are eligible for benefits.

Back 5

True

Front 6

If a person continues to work during the period of delayed retirement, it is possible for a worker's primary insurance amount to be higher than it would have been at full retirement age.

Back 6

Ture

Front 7

There is a reduction in Social Security benefits under the earnings test for a 72-year-old person who goes back to work and earns $40,000 annually.

Back 7

False. There is no earnings test reduction for a worker older than his or her full retirement age.

Front 8

Social Security retirement benefits begin automatically at a beneficiary's full retirement age.

Back 8

False. A beneficiary must apply for benefits in order for them to begin.

Front 9

Part A, the hospital portion of Medicare, is available to disabled persons under age 65 who have been eligible to receive Social Security benefits for two years because of their disability.

Back 9

True

Front 10

Part A of Medicare pays for inpatient hospital services for up to 365 days for an uninterrupted stay in a hospital.

Back 10

False. Part A of Medicare pays for inpatient hospital services for an uninterrupted stay of up to 90 days plus another 60 lifetime reserve days.

Front 11

A Medicare beneficiary who was released last week from the hospital but is going back after 7 days will start a new benefit period for Part A purposes.

Back 11

False. A new 90-day benefit period begins after an individual has been out of a hospital or skilled-nursing facility for 60 consecutive days.

Front 12

Part A of Medicare provides benefits for home health care.

Back 12

True

Front 13

Part B of Medicare pays for prostate cancer screening and certain other preventive care.

Back 13

True

Front 14

Subject to dollar maximums, Part B of Medicare provides benefits for eyeglasses, hearing aids, and orthopedic shoes.

Back 14

False. Benefits for eyeglasses, hearing aids, and orthopedic shoes are excluded.

Front 15

By electing a Medicare Advantage plan, a Medicare beneficiary may have more comprehensive benefits than those provided by original Medicare.

Back 15

True

Front 16

Medicare Part D (prescription drug coverage) is a mandatory benefit financed by additional FICA taxes.

Back 16

False. Participation in Medicare Part D is voluntary.

Front 17

A Medicare prescription drug plan with the standard benefit structure pays 90 percent of prescription drug costs after a beneficiary satisfies a $500 deductible.

Back 17

False. A Medicare prescription drug plan with the standard benefit structure pays 75 percent of the next $2,405 of prescription drug costs after an annual deductible of $295 (in 2009) has been met. Benefits then cease until a beneficiary?s total drug cost equals $6,153.75 (in 2009). Subsequently, the plan pays 95 percent of covered drug costs. These dollar figures are subject to indexing.

Front 18

The formulary for a Medicare prescription drug plan must include all drugs that can be legally sold.

Back 18

False. Medicare prescription drug plans are required to include at least two drugs in most therapeutic classes. However, most plans cover more than the minimum required number of drugs.

Front 19

Medicare beneficiaries may switch prescription drug plans at any time as long as they give 60 days notice.

Back 19

False. Unless a beneficiary is eligible for a special enrollment period, he or she may switch plans during an election period that runs from November 15 to December 31 of each year. The new plan takes effect on the following January 1.

Front 20

Enrollment in Medicare Part B is automatic for anyone reaching age 65 as long as he or she has been paying FICA taxes.

Back 20

False. Enrollment is automatic only if a beneficiary was receiving retirement benefits before age 65. However, the beneficiary can reject the Part B coverage. Anyone else must specifically elect coverage.

Front 21

Social Security and Medicare are based on a system of funding that the Social Security Administration refers to as partial advance funding.

Back 21

True

Front 22

Medicare benefits are partially subject to taxation for beneficiaries above statutory income limits.

Back 22

False. Medicare benefits are received tax free.

Front 23

Unemployment insurance is intended to provide short-term benefits (typically 26 weeks) to workers who lose their jobs.

Back 23

True

Front 24

Workers' compensation laws often have a short waiting period for disability income benefits.

Back 24

True

Front 25

In virtually all cases, employees must bear the full cost of providing workers' compensation benefits.

Back 25

False. In almost all cases, the full cost of providing workers' compensation benefits is borne by the employers, not the employees.

Front 26

Workers' compensation benefits are included in a recipient's gross income for income tax purposes.

Back 26

False. Workers' compensation benefits are received free of income taxation.