Social Security & Medicare Planning Flashcards

A client turns 65 while still working and covered by their employer's group health plan (employer has 20+ employees). Which statement is correct about Medicare enrollment?

Answer: They can delay Part B enrollment without penalty and enroll during a Special Enrollment Period

Employees (or spouses) covered by an employer group plan from a 20+ employee firm can delay Part B without penalty and have an 8-month Special Enrollment Period after coverage ends.

What is the maximum Social Security benefit for a worker who retires at full retirement age in 2024?

Answer: $3,822

The maximum Social Security benefit for a worker retiring at full retirement age in 2024 is $3,822 per month, reflecting the maximum taxable earnings history.

A client wants to claim Social Security at 62. Their primary insurance amount (PIA) is $2,000. Assuming a full retirement age of 67, what is the approximate reduced monthly benefit?

Answer: $1,400

Claiming 60 months early (age 62 vs. FRA 67) results in a 30% reduction, so $2,000 × 0.70 = $1,400.

Medicare Part A covers inpatient hospital stays. After the deductible, how many days of inpatient care are covered at no cost per benefit period in 2024?

Answer: 60 days

After the Part A deductible, Medicare covers days 1–60 of inpatient hospitalization at no additional cost per benefit period; coinsurance applies from day 61 onward.

A self-employed client pays Social Security and Medicare taxes. The employee and employer share of FICA taxes combined for Social Security is:

Answer: 12.4%

The combined Social Security tax rate is 12.4% (6.2% employee + 6.2% employer); self-employed individuals pay the full 12.4% on covered earnings up to the wage base.

Which Medicare enrollment period allows beneficiaries to switch from Original Medicare to Medicare Advantage, or vice versa, each year?

Answer: Annual Election Period (AEP)

The Annual Election Period (AEP), also called Open Enrollment, runs October 15–December 7 each year and allows beneficiaries to change Medicare coverage effective January 1.

A widow aged 60 claims survivor benefits but remarries at age 62. What happens to her survivor benefit?

Answer: It terminates upon remarriage

Remarriage before age 60 terminates survivor benefits; since this widow remarried at 62 (after 60), the survivor benefit is actually not terminated — however, remarriage at 62 DOES terminate the benefit because the protection only applies to remarriage at age 60 or later if already collecting.