Chapter 07 – Government-Mandated Social Security Programs
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Chapter 07
Government-Mandated Social Security Programs
True / False Questions
1. The Social Security Act was amended in 1965 to create the Medicare program. (Medicare)
2. The net job gains between March to June 2011 offset the net job losses during the 2007-2009
recession. (Unemployment Insurance)
3. The Medicare tax is subject to a taxable wage base. (Medicare Programs)
4. Medigap insurance supplements Medicare Parts A & B and is available from private
insurance companies. (Medigap Insurance)
5. The employee and self-employed tax rates were each temporarily reduced by 2 percent for
the 2012 calendar year. (OASDI Programs)
6. Unemployment Compensation Act of 2008 expanded the EUC benefits to 20 weeks
nationwide. (Unemployment Insurance)
7. In 2011, more than 55 million Americans were expected to receive Social Security
benefits. (OASDI and Medicare)
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8. Social Security disability benefits are available to disabled workers who are unable to work
as a result of a serious medical impairment that lasts at least 12 months. (Disability Benefits,
Eligibility)
9. Based on the 2012 report, the projected date of the Medicare trust fund exhaustion is 2035.
(Financial Status of the OASDI and Medicare Programs)
10. The Social Security Administration increases retirement benefits by a designated
percentage for each month worked beyond full retirement until age 70. (Old-Age Benefits,
Eligibility Criteria)
11. In general, an employee must earn at least 30 credits to be eligible to receive retirement
benefits. (Qualifying for OASDI Benefits)
12. Social Security pays only for total disability. (Disability Benefits)
13. Part A coverage automatically qualifies an individual to enroll in Part B coverage for a
monthly premium. (Eligibility Criteria for Medicare Benefits)
14. The Social Security Administration pays monthly survivor benefits at a level ranging from
71.5% to 75% of the primary insurance amount. (Survivor Benefit Amount Determination)
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22. Social Security retirement funds are expected to remain sustainable in the coming
decades. (Financial Status of the OASDI and Medicare Programs)
23. Medicare Part B covers the services not included under Medicare Past A. (Medicare Part B
Coverage)
24. Medicare Part D was established by the Medicare Prescription Drug Improvement and
Modernization Act of 2003. (Medicare Prescription Drug Benefit)
25. Only restricted groups of workers are eligible for OASDI and Medicare
protection. (OASDI and Medicare)
26. Medicare Select plans are Medigap policies that present higher premiums. (Medigap
Insurance)
27. The original Medicare plan is a fee-for-service plan managed by the federal government.
(Medicare)
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website,
in whole or part.
28. In 2012, how much did an employee have to make to earn a credit for OASDI? (Qualifying
for OASDI Benefits)
29. This Medicare program offers voluntary supplemental medical insurance. (Medicare Part B
Coverage)
30. Effective 2012, what was the annual increase in Social Security benefits? (Automatic
Cost-of-Living Adjustments)
31. Which of the following are eligible for OASDI? (OASDI and Medicare)
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32. Which Medicare program provides beneficiaries the opportunity to receive health care from
a variety of options? (Medicare Part C: Medicare Advantage)
33. At what age are retirees first eligible for Social Security benefits? (Old-Age Benefits,
Eligibility Criteria)
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website,
in whole or part.
Essay Questions
43. Briefly discuss the eligibility criteria for unemployment insurance benefits? (Eligibility
Criteria for Unemployment Insurance Benefits)
Main Points
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44. What is donut hole? Explain. (Medicare Prescription Drug Benefit)
Main Points
45. Briefly discuss Medicare Part A coverage. (Medicare Part A Coverage)
Main Points