Social Insurance Chapter 11. Programs Social Security Medicare Unemployment Insurance Workers...
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Transcript of Social Insurance Chapter 11. Programs Social Security Medicare Unemployment Insurance Workers...
Social Insurance
Chapter 11
Programs
• Social Security
• Medicare
• Unemployment Insurance
• Workers Compensation
Workers Compensation- History
• Employer liability laws– Need to prove employer’s negligence– Common law defenses
• Contributory negligence
• Fellow servant rule
• Assumption of risk
Workers Comp - Principles
• Absolute liability
• Partial but final indemnity
• Periodic payments
• Part of the cost of operations
• Mandatory insurance
Benefits
• Medical expenses
• Disability– Total/Partial– Temporary/permanent
• Survivor’s death benefits
• Rehabilitation
Features
• Employee cannot sue
• Benefits, coverage vary from state to state
• Benefits are mandated
• Some states have second injury funds
• Some states cover disability not related to the job (Compulsory Temporary Disability Laws)
Social Security/Medicare
• Old-Age, Survivors’, Disability, and Health Insurance
• Pay roll tax (15.3%)• Pay as you go system• Social security trust funds
– Old age and survivors– Disability– Hospital insurance– Supplementary insurance
Loss of benefits
• Dependency status
• Other income– Exempt income (pension, investment income)
• Taxation of benefits– Does not go into general revenue
Challenges
• Can the system go broke?
• Ratio of workers to retirees
• Political decision making
Unemployment insurance
• State plans
• Rationale for insurance
• Market failure argument
• “Employer paid” taxes
• Experience rating