Comprehensive Overview of Social Insurance Programs and Benefits

Social Insurance Programs

Programs that address complex social problems by providing economic security; typically compulsory with benefits based on social adequacy.

Principle of Social Adequacy

The concept that social insurance benefits should provide a minimum income floor to meet the basic needs of the entire population.

OASDI

Stands for Old-Age, Survivors, and Disability Insurance, commonly known as *Social Security*.

Year Social Security was Enacted

1935

Insured Status (OASDI)

The qualification for Social Security benefits, measured by the number of *earned credits* (quarters of coverage).

Full Retirement Age

The age at which an individual can receive 100% of their Social Security retirement benefits; varies by birth year.

Funding for OASDI

Primarily through *payroll taxes* paid by both employees and employers (FICA tax).

Medicare

A federal health insurance program mainly for persons aged *65 and older*.

Medicare Part A

Hospital Insurance (HI); covers inpatient hospital stays, skilled nursing, and hospice; funded by payroll taxes.

Medicare Part B

Medical Insurance (SMI); covers physician services, outpatient care, and preventive services; funded by premiums and general revenues.

Medicare Part C

Medicare Advantage Plans; private health plans that contract with Medicare to provide all Part A and Part B benefits.

Medicare Part D

Prescription drug coverage; provided through private plans with monthly premiums.

Projected OASDI Trust Fund Exhaustion

*2034* (as noted in the text).

Financial Challenge for Social Security

Stems from *demographic shifts*, increased longevity, and more beneficiaries relative to active workers.

Unemployment Insurance

Federal-state programs providing *temporary cash benefits* to workers who are involuntarily unemployed.

Eligibility for Unemployment Insurance

Requires prior employment, active job seeking, and meeting a waiting period.

Funding for Unemployment Insurance

Primarily by *employer payroll taxes* (Federal and State Unemployment Tax Acts).

Workers' Compensation Programs

Provides medical care, disability income, and death benefits for employees injured or made ill by *job-related causes*.

Workers' Compensation Liability

Operates under a *no-fault liability system*, meaning the employer is responsible regardless of who caused the injury.