Our most recent posting discussed the looming long term care crisis within our society. This article noted that due to our collective failures to plan, Medicaid has become the default provider and pays for more than 50% of the needed care for America’s elderly and disabled. Medicaid is a federal program which is administered by the individual states, so not surprisingly, this current situation has created enormous strains on state budgets. The state of Washington has initiated the “WA Cares Fund” in an attempt to address the problem. It was rejected twice by voters but came into being via action by the state legislature.

It is annual enrollment time for most employer sponsored group health insurance plans. High deductible health insurance plans (HDHP) are offered to many people and it is very common to wonder, “Is an HDHP right for me and/or my family?”

Insurance policies are issued to individuals, but also to corporations, trusts, partnerships and other legal entities. There are some noteworthy differences between group and individual policies that may be significant to our readers. While several types of organizations could purchase a group insurance policy, we’ll restrict our discussion to employer-based group policies

This week we’ll discuss the first risk categories mentioned in last week’s general introduction to personal risk. The risk of premature death and longevity risk are distinctly different uncertainties but both can be addressed with insurance products. We transfer (or share) some of these risks with the insurer by purchasing an insurance product specifically designed for the particular issue.