RMI 3501 Chapter Notes - Chapter 2: Social Insurance, Medicare Advantage, Prescription Drug
16 Oct 2016
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Chapter 2: Social Insurance
• Social insurance
o Federal and state insurance programs to provide people with coverage for losses arising
from death, old age, disability, and sickness
o Are compulsory employment related coverage
o Are either financed fully or partially by ERs
o 5 types
▪ Social security
• OASDI – Old Age, Survivor, Disability insurance
• Provides retirement income for most older workers, income benefits to
dependent unmarried children of deceased workers and the spouses
that take care of the children and income benefits to disables workers
after 6 months of disability
▪ Medicare
• 65 or older are qualified for medical expense benefits
• Medicare part A provides hospital expenses at no charges to medicare
beneficiaries
• Medicare part B includes benefits for many other medical expenses
o Beneficiaries must pay a premium
• 2 parts of voluntary medicare
o Part C
▪ Called medicare advantage
▪ Provides alternative plans to the original medicare
o Part D
▪ Provides prescription drug coverage
▪ Unemployment insurance
• Provides workers with a portion of their former income when they lose
their job and are still able and willing to work
• Federal gov’t provides the finaning for a large portion of the enefits
paid
• ERs take benefits from UI when creating severance packages and
supplemental unemployment insurance programs
▪ Temporary disability laws
▪ Workers Compensation insurance
• ER must provide WC for most EEs
• Provides specified levels of medical expense and disability income for
EEs who are injured b/c of work-related accidents/diseases
• Survivors receive death benefits if accident results in death
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