Social Insurance (Medicare, Medicaid, Social Security)
Social Security
OASDI is funded by FICA payroll taxes and pays retirement, survivor, and disability benefits. Full retirement age is set by birth year; claiming earlier permanently reduces the benefit, while delaying past full retirement age earns delayed retirement credits up to age 70. Disability benefits require insured status (roughly 40 quarters, with recent-work tests for younger workers), a condition expected to last at least 12 months or result in death, and a five-month waiting period. Survivor benefits can go to a spouse caring for a young child, to a surviving spouse at reduced ages, and to dependent children. Benefits are subject to federal income tax above certain income thresholds.
Medicare
Part A covers inpatient hospital, skilled nursing after a qualifying stay, hospice, and some home health; it is premium-free for most people with 40 quarters of work. Part B covers physician and outpatient services and carries a monthly premium, with income-related adjustments for higher earners. Part C is Medicare Advantage, a private plan alternative that usually includes drug coverage. Part D covers outpatient prescription drugs. Medigap supplements original Medicare and is sold by private insurers. Enrollment windows matter: the seven-month initial enrollment period around age 65, the annual election period in the fall, and special enrollment periods for those with employer coverage.
Medicaid
Medicaid is a joint federal–state program, income-tested and administered by the state; Utah administers its own eligibility rules and benefit package. Dual-eligible individuals qualify for both Medicare and Medicaid, with Medicaid often covering long-term custodial care that Medicare does not.
Trap
Medicare does not pay for custodial long-term care. That is the classic wrong-answer distractor.