Economic Issues Hmo Simulation Analysis

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Week 4 Health Care Economics Issues HMO Simulation Name University of Phoenix Economics: The Financing of Health Care HCS440 instructor date Health Care Economics Issues HMO Simulation In 1997, Castor Collin Health Insurance Company was established in Plattsburg, New York. It offers health maintenance organization (HMO) plans to companies and organizations. There are two big companies who to vying to get the contract for their employees and looked forward to see the big plan Castor Collins was going to offer them. These two companies are named Constructit and E-editor respectively. They want coverage for their employees and are seeking policies that are affordable as well. In order to qualify, they have to provide the demographics,…show more content…
The people at Constructit are willing to pay a maximum premium of $4,000 per person. The company has 550 men working for them and 450 women working for them. Out of all the employees 32% of them are involved in a great deal of physical activity during their work day,25% have moderate physical activity and 43% of the employees are involved in secondary activities. In the company 40.6% of the employees are between the ages of 26-30. With the health issues and problems that have been stated 38% of the employees have no major health risks and 10% of the employees smoke. Some of the health risks that are recorded are 39% are affected with obesity, 19.6% have high cholesterol, 19.3% have high blood pressure and 17.7% have…show more content…
With all the health issues these employees have the castor basic plan would not meet the needs of the employees. The premium would for the enhanced plan and the minor plan was too high for the benefits in these plans. The company’s employees have too many health risks and these risks will continue with the majority of the individuals being over 45. The employees would not benefit with any of the options of the benefit plans to meet their health needs. Lastly the Castor Collins company would not make any profit by offering any of their plans available to this company. Now that we have discussed the Castro Collins insurance company and what they have to offer we can see that being able to receive health insurance for the employees for two separate companies comes with risks. An insurance company does take into account the employees demographics, health risks and amount of annual premiums the organization will pay per person. A health insurance company will look into and investigate these conditions before they decide to offer health insurance to an organization. So staying healthy is an important part of obtaining health insurance for

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