I was very excited to see NASI dedicate time to health disparities and determinants of health at this year’s conference, Social Insurance in a Market Economy: Obstacles and Opportunities, because it is important to have more conversations about how social insurance programs can help reduce health disparities.
If “market economy” isn’t the first thing that springs to your mind when thinking about social insurance, you are forgiven. Honestly, before attending the 2012 NASI annual conference, Social Insurance in a Market Economy: Obstacles and Opportunities, I was in your shoes. Having spent the last eighteen months deeply immersed in my masters of public health curriculum, I viewed social insurance as a set of policies rooted in the public sector. And while the focus on government and public policy isn’t misplaced, I was missing the broader picture of the impact of social insurance on society. Fortunately, the diverse set of presenters, policy experts, and researchers, at the 2012 NASI conference corrected my lopsided view.

At NASI’s 24th annual policy research conference, Social Insurance in a Market Economy: Obstacles and Opportunities, Laura Fortman, executive director of the Frances Perkins Center, said that “people are resilient, creative, and want to work.” Many speakers at the NASI conference touched on the importance of creating jobs, and getting people into those jobs, while increasing demand in the economy. The working and not working population drive outcomes for social insurance programs such as workers’ compensation, Social Security disability, and unemployment insurance.
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Financial planning is a young and growing profession that should be in more demand as a result of recent economic turmoil; people need planners to serve as an objective source to guide their financial behaviors. Planners, and clients alike, must be aware of social insurance because these programs affect financial assumptions and projections regardless of socio-economic status. Social Security, in particular, has become a major focal point for planners and clients because the amount of benefits received will determine the amount a client needs to set aside in a savings vehicle (e.g., IRA, mutual fund, money market account, etc.).
Employers in 28 states owing $38.2 billion to the federal government for unemployment insurance benefits incurred an increase in their Federal Unemployment Tax Act (FUTA) tax this week. Revenues from the tax increase will go directly toward repaying the balance of the loans. A total of 35 states opted to borrow federal dollars because their unemployment insurance trust fund reserves were insufficient to weather the recent economic downturn. The deep and prolonged Great Recession, current sluggish recovery, and continued high rate of long-term unemployment have further reduced revenues and increased outgoing unemployment insurance payments.