Understanding_Economic_Time

Running Head: UNDERSTANDING ECONOMICS ISSUES QUESTIONNAIRE Understanding Economic Issues Questionnaire HCS/440 Professor Nanc Renninger, DBA, c. MHA University of Phoenix May 24, 2010 Understanding Economic Issues Questionnaire Castor Collins was founded in 1999 and is an HMO that provides health insurance and health care services to enrollees through it’s statewide network of physicians and hospitals. Currently the company has 100,000 enrollees and is currently looking to increase this number. Constructit and E-editors are companies currently looking for insurance coverage for their employees and are willing to pay different premiums. Taking into consideration the amount of employees, ages and preexisting condition’s or profile, the most appropriate and beneficial coverage will be formulated to suit their health care needs. Constructit will be supplying 1,000 employees with health care insurance and are willing to pay a maximum annual premium of $ 4,000 per employee. E-editors will be supplying 1,600 to their employees and are willing to pay a maximum annual premium of $ 4,500 per employee. Castor Collins will attempt to tailor the health care plans that will be most suitable and profitable for the companies. The current coverage’s are broken down into three categories. Castor Collins Health Plans will begin comparing the three to see which health care coverage better suits the companies. Castor Standard is a basic coverage has lower premiums, less coverage and does not cover preexisting medical conditions. The main area of coverage with this policy has a lower copayment, covering fewer services with a higher profitability margin. Castor Enhance covers more than the standard package and does cover preexisting medical conditions. The premium is higher because it covers more areas then the standard policy. After reviewing Constructit health profile, there are many preexisting conditions and high risk factors that will need to be taken into consideration. The work profile shows that the demand for physical activity is at a high 32 percentile with higher risk factors for obesity related illnesses. After the simulation I have concluded that the best fit coverage for Constructit would be best fit for the Castor Enhances coverage. The reason for the decision was because the premium is within the allotted budget that they are able and willing to pay. Because the employee age group is also less likely to have preexisting medical conditions and based upon the company profile there are many employees currently have medical conditions the plan will provide the adequate medical coverage for the employees. Castor Enhances will cover preexisting medical conditions and the standard plan will not. Castor Enhances is the appropriate plan for the company because the premium is within the allotted budget. Those that do have preexisting conditions will be provided adequate coverage to include the 39 percent of employees that are obese. The plan will also benefit the employees who work in an environment that involves an increase in physical activity. After reviewing E-editors health profile the records show that based upon a low percentile of preexisting conditions the most appropriate plan would be Castor Standard. Though many of the employees do not currently have preexisting medical conditions, many will develop serious conditions based upon current unhealthy habits and obesity. The related work functions entail less physical activity and mostly require the work to be performed in front of a computer lessening the chances of work related accidents that would require emergency medical treatment. Castor Standard care plan would be most suitable for this company. The premium is well within the allotted budget provided by E-editors and that they are willing to pay. The plan was selected based on no coverage to preexisting conditions because they are so low. The risk of stress related injuries and vision problems are high and these are covered with the standard plan. Twenty six percent of the men and woman that are employed currently smoke and forty six percent and forty four percent are obese putting them at higher risk for hypertension, high cholesterol and cardiovascular disease.