Economic Issues Simulation

Topics: Employment, Dollar, Plan Pages: 5 (1064 words) Published: July 2, 2014


Economic Issues Simulation
Eric Massingill
HCS/440
April 2, 2014
Jennifer Jenson
Economic Issues Simulation
Castor Collins Vice President Mary Mulanax has been asked to come up with a strategy and financial plan for the corporation. The duties she is faced with is setting pricing plans and insurance premiums for companies and their work force. During this time Castor Collins has been approached by two different companies looking to get insurance for their work force. The companies have a set rate for employees and set premium as well since the employees will be paying for their own insurance (College, 2006). The company seeking insurance for their employees are Constructit and E-Editors. Constructit has 1,000 people in their company and E-Editors has 1,600 people within the company. So each company has set premiums, Constructit has a 4,000 dollar max and E-Editors has a 4,500 dollar max. The company I chose to look at is Constructit has to decide between the three plans, which are Castor Standard, Castor Enhanced and Castor Enhanced Minor which is a customized plan. Demographics of Constructit

Looking at the demographics of Constructit consist of 550 men and 450 women, which are between the ages of 26 to 45 (College, 2006). Looking at the duties of the employees for Constuctit can be different according to what part of the plant they are located. So we notice that 32% of the employees are working in an excessive physical department, 25% are working in a less active department and the remaining 43% work in area with no physical activity. With all of these different areas that employees work is subject to injury, because of the where they are located. Those working for Contructit 60% of the employees are married also of all the employees not all are in perfect health. Looking at how many employees are in great health we notice that is 38% which can be broke down by 170 men and 210 women. There is also 10% of the employees smoke, 55 men and 36 women. The rest of the employees are broken down as follows those with injuries, those that have breathing problems, those who have problems with eating, excessive migraines, and those with allergies (College, 2006). Health Concerns

As Castor Collins was go through their data from the investigation they noticed that the employees of Constructit a lot of health issues. One part of the investigation stated that 39% of the employees are overweight, which consist of 198 men and 192 women. They have showed Constructit that employees that are overweight can cause the employee to have high Cholesterol and can also cause the employee to get high blood pressure. Now we look at the rest of the concern that effect the employees. The employees suffering from allergies consist of 17%, the employees suffering from migraines are 16% and the ones suffering from breathing is 13%. The very last one are those suffering with problems eating or digesting are 8%. The problem of developing a plan for Contructit lies in the hands of Mary, which has to stay in the 4,000 dollar budget. Plans

Mary Mulanax from Castor Collins has come up with two different plans that could fit the employees of Contructit. The first plan that Contructit can look at is Castor Standard, which want cover any preexisting health condition. Second plan that Mary show Contructit is the Castor Enhanced which will cover the employees and all preexisting conditions. Helen one of the team members for Constructit suggest the Castor Enhanced and to eliminate a few of the services with high utilization. Another team member Adam suggest not to choose either of the plans if the risk outweighs the profits. Constructit did not choose the Castor Standard, because it did not cover preexisting conditions. The premium is in the range they were looking for and profits would be higher. The Castor plans which Mary presented does not include the copayment the employee will pay. Here are some examples of the copay employees will have to...

Cited: College, A. (2006). Understanding Economic Issues for HMOs. Retrieved from www.axiacollege.com
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