Which term refers to social insurance programs funded by the FICA tax?

Which term refers to social insurance programs funded by the FICA tax?

• A. FICA
• B. Medicare
• C. OASDI
• D. Social Security

Answer: (D)

FICA funds two main federal programs, and the term that describes the social insurance programs funded by FICA is Social Security. This umbrella program covers retirement, disability, and survivors benefits. A more specific piece is the acronym OASDI, which stands for Old-Age, Survivors, and Disability Insurance and is the part of Social Security that handles those benefits. Medicare is another program funded by FICA, but it is health insurance rather than the social insurance benefits typically referred to by Social Security. So, the best term for the question is Social Security.

FICA funds two main federal programs, and the term that describes the social insurance programs funded by FICA is Social Security. This umbrella program covers retirement, disability, and survivors benefits. A more specific piece is the acronym OASDI, which stands for Old-Age, Survivors, and Disability Insurance and is the part of Social Security that handles those benefits. Medicare is another program funded by FICA, but it is health insurance rather than the social insurance benefits typically referred to by Social Security. So, the best term for the question is Social Security.