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Choose one of the following programs to discuss: Social Security, Medicare, or payroll deduction (railroad, interstate, federal programs). Write a 1,000- to 1,200-words that cover the following historical changes:
Discuss the historical perspective, demand, and creation of the program.
Explain the background, benefits, who was covered, and the challenges involved in creating the program.
Describe how your program impacts the lack of price transparency and quality today.
Explain the changes in pricing and transparency over the course of your selected program.
Include three scholarly sources, including your textbook.
Payroll Deduction (Railroad, Interstate, Federal Programs)
The concept of payroll deduction has been with us for centuries. It is a system whereby an employer deducts money from an employee’s wages as payment for taxes or benefits such as life insurance and retirement savings. Historically, payroll deduction began in the early 19th century when British Railways introduced the practice to its workers and other businesses followed suit. Around the same time in America, railroad companies began to use payroll deductions to pay their employees’ taxes related to their employment and railroads were also the first employers in this country to offer health insurance plans funded through payroll deductions. By 1949, more than half of all private employers offered various types of benefits that could be paid through payroll deductions.
Today’s concept of a federal program involving mandatory paycheck deductions originated during World War II when Congress enacted several important pieces of legislation designed to meet specific wartime needs. These laws included income tax withholding at source from each worker’s paycheck; Social Security contributions via the Federal Insurance Contributions Act (FICA); the Railroad Retirement Tax Act; unemployment compensation; and state disability insurance plans funded by employer/employee contributions made through weekly paycheck deductions. In addition, many states passed laws requiring employers to withhold state income taxes from employees’ earnings and make payments directly or indirectly on behalf of both employers and employees for workers compensation premiums payable into special funds administered by each state government agency responsible for providing these benefits such as medical care or death benefits due under those programs (State Board of Workers Compensation). As public awareness grew regarding how much was being deducted from paychecks each week, it became clear that there was little transparency regarding where exactly one’s money was going while others took issue with whatever they deemed excessive amounts being taken out every month rather than having it available for immediate spending purposes like food or rent payments etc..
In response to these criticisms and growing concerns over rising healthcare costs during this period, Congress passed another piece of legislation called COBRA which required most insured group health plans sponsored by private-sector firms employing 20+ people to allow former employees who left their jobs within certain conditions access continued coverage under their employer’s plan usually based upon them paying 102% of the premium cost themselves since none would be coming out at all from their former employer due leaving his job no amount would be withheld if he had not returned past requests for benefit extension paperwork when originally exiting . This gave individuals more control over what type coverage they wanted versus just simply accepting whatever policy was offered without any options whatsoever elsewhere depending on pre existing condition status . Furthermore , similar measures have been taken up until recently applicable towards Medicare part C & D prescription drugs enabling seniors eligible persons aged 65+ enrolling in these two parts mentioned above access discounts off RPH retail prices if prescribed brand name medications plus additional discounts depending on annual household incomes thus encouraging price transparency amongst nonprofits & small pharma drug manufacturers selling generics instead generic equivalents preferrably thru mail order services regardless pharmacy location locations but still far away betterment provide then what existed before concerning original rules governing medicare prior PPACA aka Obamacare passage 2010 __
It is evident that throughout history there have been significant changes made in terms our approach towards pricing/transparency associated with various types federal programs such social security , medicare ,payroll deduction among others impacting hundreds thousands individuals today whom receive benefit either directly indirect manner . Although current practices remain somewhat ambiguous particular extent overall improvements seen across board demonstrate notable progress achieved over decades prior reforms allowing citizens greater freedom choice especially regards matters pertaining personal finances . Moreover recent legislative efforts continue strive enhance quality life those receiving assistance thru aforementioned systems well ensuring level fairness provided despite ever changing economic circumstances encountered everyday lives