Chapter 14: Healthy Aging Flashcards
What is the largest generation to reach older adulthood?
Baby boomers
What four changes can we expect in demographics between now and 2030?
- Older pop. in the US will nearly double
- Older adults will be more educated and politically involved than past generations. They will be proficient users of the Internet.
- Older adults will expect to keep their benefits for retirement. They will believe that a comfortable retirement is right, not a privilege. they may not have the financial savings necessary to support these expectations.
- Dependency ratio will change to where more older individuals will be dependent or fewer workers to pay taxes needed to provide revenue for social support programs.
How does Social Security work?
Workers pay taxes that help current retirees.
How can the increased rate of divorce and number of ethnic minority older adults change Social Security and Medicare?
The increased rate of divorce can leave middle-aged adults feeling less obligated to take care of parents or step-parents who were not involved in their upbringing. The care of these older adults will then be placed on society.
The increase of ethnic minority older adults will cause a reconsideration of issues such as health disparities and access to goods/services. It will also provide a richer understanding of the aging process.
What % of older adults are under the traditional definition of poverty? What % are under the SPM definition of poverty?
10% and 15%
Compared to European Americans, poverty rates are ________ times higher for Latinos and ________ times higher for African Americans
Three times higher for Latinos and two and a half times higher for African Americans.
The cost of taking care of baby boomers will likely increase US debt from 75% of GPD to ______
120%
What was Social Security originally intended to do? What has changed since then?
It was originally supposed to supplement savings and other means of financial support.
Since then, the number of people who reach 65 has increased and SS is now the primary or only source of financial support after retirement for most US citizens.
When was Social Security established? Who established it?
- Franklin Roosevelt.
What are some changes that Congress made to Social Security, Medicare, Older American Act, and other policies in 1983?
- Reduced benefits to wealthy older adults
- Changed eligibility rules
- Provided targeted benefits for poor older adults
The shift from traditional pensions to contributory retirement plans (ex. 401k) is likely to result in what? Why?
Many older adults rely on SS as their primary source of income. This is because contributory plans are impacted by the stock market but traditional pension plans aren’t.
True or False. The benefits a person receives from SS comes from an account that reflects what they contributed over their employed career.
False. SS is actually a revenue in/payments out program in which workers pay taxes that go out as payments to those who are collecting benefits today. Payments that current workers will receive in the future will come from taxes paid by workers in the labor force at a future time.
Why does the payee/recipient ratio matter in SS?
It matters because the amount of taxes that the workforce must pay to help take care of older adults is dependent on how many workers there are and how many older adults there are. The smaller number of workers in the labor force plus the growing number of older adults will cause taxes for workers to increase.
By 2034, revenue from SS taxes will only cover ____% of the benefits promised.
75%
What criteria must a person meet to be eligible for Medicare?
- Be over 65
- Be disabled
- Have a permanent kidney failure
What three parts does Medicare cover?
Part A covers inpatient hospital services, skilled nursing facilities, home health services, and hospice care.
Part B covers the cost of physician services, outpatient hospital services, medical equipment/supplies, and other health supplies/services.
Part D covers some coverage for prescription medications.
How does tax on Medicare differ from tax on SS?
SS tax is based on a cap while Medicare tax is based on one’s earnings.
True or False. Medicare has been subjected to significant cuts in expenditures typically through reduced payouts to healthcare providers.
True.
