Social Security Administration

Social Security Administration (SSA), independent government agency that administers the largest social insurance programs in the United States. Originally created in 1935 as the Social Security Board, the SSA was a division of the U.S. Department of Health and Human Services from 1980 through 1995. The social security program is the nation's primary means of assuring a continuing income when family earnings stop or are reduced because of the retirement, death, or disability of any person who contributes to the support of the family. Under social security, employees, their employers, and self-employed people pay contributions that are pooled in special trust funds. When earnings stop or are reduced because a worker retires, dies, or becomes disabled, monthly cash benefits are paid to replace part of the earnings lost. In addition to Old-Age, Survivors' and Disability Insurance, the other program that is administered by SSA is Supplemental Security Income.

Social security contributions help pay the cost of health care for people aged 65 and older. A portion of the contributions finances Medicare hospital insurance (see Medicare and Medicaid). Voluntary medical insurance, also available under Medicare, is financed by monthly premiums paid by the people who sign up for this protection and by matching contributions by the federal government. Administration of the Medicare program has been transferred to the Health Care Financing Administration.

In 1994 almost 43 million men, women, and children were receiving monthly cash benefits at the rate of more than $26 billion each month. Nearly all the people in the nation aged 65 and over were eligible for hospital-insurance protection. About 95 percent of them also had protection under medical insurance.