Harley Davidson

Fred Terry

fterry@elmore.rr.com

Principles of Risk Management and Insurance

Wall Street Journal Assignment 3

Due 16 Jun 05

Dr Deloach

Wall Street Journal 1 June 2005 Edition

O HEALTH-CARE LEADER, WHERE ART THOU?

Healthcare reform issues have been in need of leadership from the CEO's charged with making them viable and so far Washington has failed to provide guidance. Business has taken the lead role in addressing the county's healthcare worries, but it also needs to be addressed by the political party candidates when assuming the party's leadership role.

With current costs slowing, businesses have taken credit for nearly doubling the amount of firms with "health savings accounts" to their workers from 14% to 26%. This trend allows insurance to return to their classic role of paying for 'catastrophic' medical bills while consumers save tax-free to cover routine medical costs and small emergencies. This idea introduces incentives to spend healthcare dollars more wisely.

This tax-incentive plan makes two crucial points: The impact on how the healthcare industry organizes, delivers, and prices it services won't be felt until thousands of companies with millions of employees are doing the same; and companies need to offer such plans not in parallel with conventional plans, but as a sole option. In closing, will tax incentives figure more prominently in the mainstream? Well until reformers learn how to break the tax code, businesses will have no choice but to provide leadership in coping with the nation's healthcare economy.

Jenkins Jr, Holman W., Wall Street Journal, 1 June 2005 Edition, pg. A21.

Fred Terry

fterry@elmore.rr.com

Principles of Risk Management and Insurance

Wall Street Journal Assignment 4

Due 23 Jun 05

Dr Deloach

"Tobacco Accord Seems Likelier As Government Cuts Demands"

Slashing cost to $10 billion for stop-smoking program may help bring a settlement in the anti-smoking case brought about by the US government. The $130 billion lawsuit being trimmed to $10 billion could bring the sides a step closer to settlement and at least give the government's case a better chance to survive an appeal. This compromise could fund a smoking-cessation program valued at $10 billion over five years instead of $130 billion over 25 years.

Experts believe this reduced amount reflects a more realistic view of what tobacco companies might settle for. The requested program would target only current smokers and those who start smoking in the near future, government officials note, but I could be extended repeatedly--if a court-appointed monitor finds continuing industry misconduct.

Tobacco company lawyers say they are preparing briefs arguing that the judge, Gladys Kessler, shouldn't have allowed government lawyers to reshape their case after the upcoming appellate-court ruling. In addition, the suggested remedies don't meet the legal standards on restraining future