Name four broad categories of the Social Security Program and explain the purpose of each category.
http://en.wikipedia.org/wiki/Social_Security_(United_States)
The Social Security Program in the United States comprises several broad categories, each serving a specific purpose. Here are the four main categories and their purposes:
1. Retirement Benefits (Old-Age and Survivors Insurance):
The purpose of retirement benefits is to provide a steady income for individuals who have reached retirement age (as defined by the Social Security Administration). Eligible individuals can begin receiving retirement benefits as early as age 62, although the full retirement age is gradually increasing. These benefits serve as a financial safety net, replacing a portion of an individual's pre-retirement income to help meet their living expenses during retirement. Survivors benefits are also provided to the dependents of deceased workers, including spouses, children, and sometimes parents.
2. Disability Benefits (Disability Insurance):
Disability benefits provide income support to individuals who are unable to work due to a long-term medical condition or disability. The purpose is to help them meet their basic needs and maintain a certain standard of living. Eligibility for disability benefits is determined by meeting specific criteria set by the Social Security Administration, which includes having a severe physical or mental impairment that prevents substantial gainful activity for at least one year or will result in death.
3. Medicare:
Medicare is a healthcare insurance program primarily for individuals aged 65 and older, as well as certain younger individuals with disabilities or end-stage renal disease (ESRD). The purpose of Medicare is to provide access to affordable medical care, helping individuals pay for essential health services, including hospital stays, doctor visits, prescription drugs, and preventive care. Medicare is divided into several parts, each covering different aspects of healthcare, such as hospital insurance (Part A), medical insurance (Part B), and prescription drug coverage (Part D).
4. Supplemental Security Income (SSI):
SSI is a needs-based program that provides cash assistance to individuals with limited income and resources who are aged, blind, or disabled. The purpose of SSI is to ensure basic financial support for disabled or elderly individuals with little or no income. It is a means-tested program, meaning that eligibility is determined based on income and assets. SSI benefits can assist with covering basic needs like food, shelter, and clothing.
To learn more about the specific eligibility criteria, benefits calculation, and application processes for each category, it is recommended to visit the official Social Security Administration website or consult with a qualified professional.