Third and State

By Jheanelle Chambers, Intern

Temple University professor and National Federation of Independent Business economist Bill Dunkelberg writes in a recent Philadelphia Inquirer column that health care coverage should be more like auto insurance, covering catastrophic illnesses only — and not routine preventive care:

For me, what we call "health-care insurance" should be more like car or home insurance. Health plans should cover catastrophic illness, but not preventive care.

When you change the oil in your car, does your car insurance cover that? New tires? A battery? That's maintenance.

But if you have a serious accident, that is "catastrophic," involving potentially large and uncertain costs, and insurance covers that.

The problem with this approach is people are not cars. Regular medical check-ups maintain good health, and if a person waits until a minor illness turns serious, the cost of treatment is much greater. There is also strong evidence that preventative care increases both the quality and the length of people's lives.

By Sean Brandon, Intern

The employment services industry provides a variety of human resources services, including most notably supplying temporary workers to other businesses. Because of the unique characteristics of this industry, economists often use its job market trends as an economic forecasting tool. The reason is simple: When the economy starts to slide, the first workers to go are usually the temporary employees, but when the economy begins to pick up, businesses will hire temporary workers first.

By Sean Brandon, Intern

The U.S. Department of Education recently released 2009 fiscal year data on the number of students defaulting on college loans. In a press release, the Department noted that the national default rate rose from 7% in 2008 to 8.8% in 2009, affecting loans for all types of colleges and universities. The default rate rose from 6% to 7.2% on loans for students at public institutions, 4% to 4.6% at private institutions, and 11.6% to 15% at for-profit institutions.

Among the states, Pennsylvania has the third highest number of higher learning institutions (behind California and New York) and a student default rate of only 6.6%, which is considerably better than the national rate. However, Pennsylvania is no exception when you compare the relationship between the unemployment rate and the borrower default rate. 

By Sean Brandon, intern

Last week (while Third and State was on holiday), Pennsylvania’s July jobs report came out. The unemployment rate for July jumped from 7.6% to 7.8%, with 493,681 Pennsylvanians out of work.