Economic Issues Simulation Paper

Economic Issues Simulation Paper

HCS440

Economic Issues Simulation Paper

In today’s workplace health care needs are changing and requiring companies to look at employees and the lifestyles he or she lives. Smokers, overweight, chronic health problems will not only effect the individual employee but the company’s ability to get quality health insurance for the best price. Health insurance is a demand good and as long as employees needs health care service there will always be a need for health insurance. This paper will discuss two companies seeking health insurance through Castor Collins Health Plans. Castor Collins Health Plans is a regional HMO providing health insurance through its statewide network of health care providers and will evaluate the demographics of the employees, the health care risk factors or potential areas of high utilization, and the premiums each company is willing to pay in order to select which companies will be the best match for Castor Collins.

Constructit is a company that currently does not have health insurance benefits for the company’s large number of employees. Constructit employs a large number of personnel consisting of 1,000 employees that the company is will to pay $4,000 for premiums. Through the evaluation of the company’s health profile, Castor Collins observed that the age group is between 26 through 42, 60 percent of the employees are married. The exercise levels of the employees vary throughout the company but 32 percent of the employees are involved in great physical activity and can decrease the likelihood of developing chronic diseases in the future. 38 percent of the company has been diagnosed with no major health concerns but 10 percent of the men and eight percent of the women are smokers, which could lead to major health complications in the future. According to Chart 2, 39 percent of the company are affected by obesity. Obesity has the highest percentage of affected people within the company.

Chart 1

Chart 2

Chart 3

E-Editors is a large company that consists of 1,600 employees the company is willing to pay $4,500 for premiums and does not currently have employee health coverage. Through the evaluation of E-Editors health profiles, Castor Collins observed many red flags that can have a negative impact on employee’s health care. The age group of E-Editors are 35 through 54 with most employees being married. Most of the employees do not get regular exercise due to the long hours sitting behind a computer. Although 22 percent of the employees have been diagnosed with no major health concerns, 26 percent of the men and 32 percent of the women are heavy smokers. According to chart 5, obesity has the greatest percentage of people affected, obesity can lead to major health complications in the future such as diabetes, high blood pressure, and heart attacks.

Chart 4

Chart 5

Castor Collins proposes three different insurance plans which can be designed to fit the needs of different employers. The three plan are Castor Standard, Castor Enhanced, and Castor Enhanced Minor but Castor Collins has the option to not insure either company if the risks offset the company profits. The variance between the three plans are: Castor Standard does not cover preexisting medical conditions, Castor enhanced does cover preexisting medical conditions,