EXAMFX Social Insurance Programs 3

Question 1

Which statement about Medicare Part B premiums is correct?

Accepted Answer

Higher-income enrollees pay an income-related monthly adjustment amount (IRMAA)

Answer

Medicare Part B uses an Income-Related Monthly Adjustment Amount (IRMAA), meaning higher-income beneficiaries pay a larger premium than standard-income enrollees.

Question 2

Supplemental Security Income (SSI) differs from Social Security Disability Insurance (SSDI) primarily in that SSI is:

Accepted Answer

A needs-based program funded by general tax revenues

Answer

SSI is a needs-based assistance program funded by general federal revenues that does not require prior work history, unlike SSDI which is based on work credits.

Question 3

Under Social Security, the Full Retirement Age (FRA) for individuals born in 1960 or later is:

Accepted Answer

67

Answer

For individuals born in 1960 or later, the Full Retirement Age is 67, as the FRA was gradually increased from 65 under the Social Security Amendments of 1983.

Question 4

A Medicare SELECT policy differs from a standard Medigap policy primarily because it:

Accepted Answer

Requires the use of network providers for non-emergency care to receive full benefits

Answer

Medicare SELECT is a type of Medigap plan that uses a network of preferred providers and requires policyholders to use those providers for non-emergency services to receive full benefits.

Question 5

Which of the following is a key characteristic of the Social Security Old-Age, Survivors, and Disability Insurance (OASDI) program?

Accepted Answer

It is funded on a pay-as-you-go basis through current payroll taxes

Answer

OASDI operates on a pay-as-you-go system where current workers' payroll taxes fund the benefits paid to current retirees and disabled workers.

(EXAMFX) Exam FX Insurance Practice Test

(EXAMFX) Exam FX Insurance Practice Test

EXAMFX Social Insurance Programs 3