Economic Issues Simulation
Economic Issues Simulation: Constructit
Constructit is a company which does not presently have any employees with health insurance benefits. The company employs 1000 people and are willing to fund annual premiums as long as they can pay $4,000 per person. The employees comprise of 550 men and 450 women, ranging in ages 26 to 45. Furthermore, the workers 57% of the workers range from high activity to moderate activity while the 43% that remain are in predominantly sedentary positions. The employer must calculate what kind of risks the employee will face when considering what type of insurance to offer the employees. In this scenario, 38% of the employees are not at any major risk whatsoever. Although, nearly 18% of the employees are smokers and 13.5 % of the group suffer from a respiratory illness or disease. Another significant risk factor is obesity. Obesity is a disease that affects 39% of the workers and these employees are also at risk for illness and diseases linked to obesity. The related diseases include heart disease, hypertension, hyperlipidemia and diabetes. The use of health care services increase as well through prescription medications, diagnostic imaging/services, and outpatient office visits. Castor Collins offers various different insurance plans which can be used to meet the needs of Constructit. The first plan is referred to as the Castor Standard plan. The Castor standard plan does not provide coverage for individuals with pre-existing medical conditions. Consequently, Constructit has a low margin of pre-existing medical conditions so the plan would work out in their favor. The estimated premium for this plan would be $3,428, which is slightly lower than the amount they offered to pay. The second option for the company is the Castor Enhanced plan. This plan is almost identical to the standard plan, with the exception that it covers pre-existing conditions. This plan would also...
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