Economic Issues Simulation Paper Essay

The beaver fur collins wellness be after is a health maintenance program (HMO) that was found in 1999 and has grown over the years. The family departs health insurance reporting through a system that involves a net lean of physicians and hospitals. Castor Collins Heath Plan uses the capitation model to blood line its large distri exclusivelyed group of physicians and health c atomic number 18 organizations. Castor Collins before long provides health care coverage to 100,000 subscribers and would like to increase their enrollees. It is the responsibility of the ill-doing President along with his roughly trusted advisers, Helen Feuerman, straits Financial Officer, Jonathan Wilkes, Chief Medical Officer, and Adam Hunter, Executive Vice President, Planning and Development, to r each(prenominal) forbidden to new clients two in particular, E-Editors and Constructit.E-EditorsThe comp both E-Editors employs 1,600 individuals, 760 male persons and 840 females. The employees ages r ange from 35-54. well-nigh of the employees with E-Editors are married so they get out need to provide an affordable health care invent for their families. Looking at the kind of work involved for most of the employees, Castor Collins found that m whatever of the individuals suck up a sedentary position. In fact, social clubty-five share of the employees at E-Editors maintain a position that requires long hours of sitting in front of a computer the remaining five percent of the employees ache positions that require somatogenic activity. A thorough health screening was conducted by Castor Collins. Their findings were as fol clinical depressioned, most of the employees who be possessed of sedentary positions had problems with their vision.Twenty two percent of the employees had no history of health issues. Twenty six percent of the employees are smokers, most of them revealing that they are considered heavy smokers, although none of employees that smoke describe any respir atory complications. The remaining forty- five percent of the employees are obese. Interestingly, the obesity is collect to a sedentary job, poor eating habits, and little to no animal(prenominal) activity. These populations of employees are at insecurity for severe health complications and diseases.ConstructitConstructit has 1,000 employees 550 being male and 450 are females. The age group ranges from 26-42, and sixty percent of the employees are married. cubic decimetre three percent of the employees have positions that require physical activity. Thirty-two percent of this group has high activity positions and twenty five percent have moderate activity positions. The remaining forty three percent of the employees have sedentary positions. The result from this groups health screening are as followed, cardinal percent of the employees have no preexisting health issues and are in good physical health. Ten percent of the employees are smokers. Thirty nine percent of the employees are considered obese, which is a high obesity rate. Some of the illnesses that were reported are digestive disorders, respiratory diseases, injuries, and eitherergies.Analysis of both groupsIt is Castor Collins job to find suitable health care plans that go away social welfare both companies, employees, and Castor Collins while keeping in spirit to sustain it affordable and proficient to all. They will need to evaluate the electromotive force risks and assess the live of agios for both. All members of the team up determined the best bureau for deciding would be best conducted by using the cost-benefit depth psychology system. The cost-benefit analysis (CBA) is a set of techniques for assisting in the making of decisions that translates all relevant concerns into food market (dollar) terms (Gertzen & Allen, 2007).The team must first consider the age, gender, and profiles of all employees. Secondly, shape the potential health risks, calculate premium and profit. Thirdly, decide what services will be covered and co-payments for these health plans. When taking into consideration the different health profiles of all employees obesity seemed to be an issue for both. This alone makes the population at high risk for health issues associated with obesity such as message diseases, strokes, and diabetes. E-editors seem to have a higher percentage of obesity and smokers putting them at a much higher risk with health issues. end pointAfter evaluating the cost and benefits that go along with providing health insurance coverage to both E-Editors and Constructit, Castor Collins financial team decided that they would scarce be able to provide health insurance coverage to Constructit and not E-Editors. The reason for this decision is E-Editors have a higher percentage of employees that are at risk for developing chronic diseases. The team went ahead and presented an suffer to Constructit and their employees. Castor Collins can offer their employees the Castor Standard plan, which the premium to be charged will be $3,428.00. The reasoning behind choosing this plan over the Castor Enhanced and the Castor Enhanced Minor is the premiums for each employee would be significantly lower than the Enhanced and Enhance Minor plans regular though each employee was willing to pay a maximum of $4,000 for their one-year premium.Also, Castor Standard does not cover preexisting health conditions, so this would be a low risk investment. Preexisting conditions can cost a company thousands of dollars and in the end not be beneficial to the companys profits. If Castor Collins were to contemplate preexisting conditions a much higher premium may have to be considered. This is an profit that can help keep the annual premiums down and still provide many other health coverage services. The premiums that Castor Collins will charge the employees at Constructit are much lower than anticipated, which means a lower profit return. This group is considered a lower he alth risk group so increasing premiums could create a possibility to make greater returns, but the outcome is still fitting.ConclusionMany hours of preparedness and development were considered for the final decision of adding Constructit and not E-editors as a client. The team made this decision by utilizing the CBA method and determining that Constructit would be low risk to provide health coverage too. The plan that was chosen Castor Standard will have a lower return but in the long run be beneficial to Castor Collins. The employees at Constructit will be able to afford the health coverage plan and look towards the future knowing they are insured and covered for any emergencies without draining the wallet. Castor Collins and Constructit will begin a honour journey that will benefit both companies in the end. The team ground this decision on considering all thenecessary health profiles, risks, and premiums and comparing all of the facts between both companies.ReferenceGetzen, T. E., & Moore, J. (2007). health Care Economics Principles and tools for the Health Care Industry. Hoboken,, NJ John Wiley & Sons, Inc.