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.
What is the primary reason for employers to purchase insurance plans to provide health benefits to their employees? The primary reason for employers to purchase insurance plans to provide health benefits to their employees is because they use it as a fringe benefit. Health insurance will make it so employees can avoid the high prices of health services. 3. What is managed care?
However, Dr. Marc Stern pointed out in the article “Prison Inmate Awaits Organ Transplant” that the operation can be covered between $250,000 and $500,000. For each prison system, there are $80-million health care budget funded by the government. Some people eclaimed that prison It may not be enough money to pay for all the health bills. Most prison systems cannot afford huge bills within the heart transplantation. It is approximately a million dollars for health service.
This plan does not cover preexisting conditions, the risks of providing this plan is lower. This groups employees were younger than those for E-Editor and did not have any preexisting conditions. This is why this makes it the best insurance plan for Constructit. The premium that is going to be charged Constructis is $3,428, and Castor Collins earning from Constructit is $3.43 million. Given the health profile and expected utilization of services for this group, increased earnings for Castor Collins could have been better if Constructit had been provided a different plan.
A marginal analysis will offer insight into the benefits of procuring physicians in rural or low income urban areas compared to the additional costs of having them provide services (Investopedia, 2014). This tool can help an organization maximize the profits associated with bringing in a new physician (Investopedia, 2014). By analyzing economic expansion, population growth, the work effort of physicians, and the services provided by mid-level providers such as physician assistants and nurse practitioners a manager or administrator will get a complete picture of the benefits and financial risks associated with a new physician (Cooper, Getzen, McKee, & Laud, 2002). By investigating these four trends, an organization can contemplate the need for more physicians in their area and whether or not their long-term needs will be met by a new
So as you can see, it is not the highest paying degree, but definitely not the lowest. I would definitely look into and consider this in my search for career choices. As far as the benefit to the company is concerned, tuition reimbursement is huge. The fact that not many companies in today’s society even offer it, make it even more valuable. It can save a person upward of $60,000-$100,000 over the years that it takes to get a bachelor’s degree.
Medical health care cost so much due to hospitals over charging private insurance. Patients that used Medicare actually pay less for their service than patients with private insurance. Premiums are higher to the employer because of the price the hospital offers. A solution could be lowering the age to apply for Medicare or making Medicare available to the public. Healthcare cost management should be control by the citizen.
I have discussed the advantage of the consumer driven health plans. I talked about the advantage and disadvantage of the reforming health care. I believe that the advantages overweight the disadvantages of health care reform. It will allow the uninsured to have health insurance coverage and mandates coverage for all
Economic Issues for HMOs Dana Carter HCS/440 December 7, 2010 Tom Flora, PhD Economic Issues for HMOs This simulation looks at providing health care insurance coverage from the standpoint of a health maintenance organization (HMO). The obligation of Castor Collins is to provide health care for potential members of two companies, Constructit Construction and E-Editor. Castor Collins had to decide about quality of health care at a price that covers premiums and potential earnings from the plans both companies can purchase. Castor Collins also had to decide if insuring both companies would be optimal in the HMO and would they have to deny coverage based on a risk and utilization assessment. Insurance Plans The simulation
Economic Issues Simulation Paper HCS/440 Health care economics of has made drastic changes in the United States because it reflects and perceives the demand for medicals care and health care cost. Economics plays a major role in health care because it focuses on the financial aspects of the overall health care system as well as acknowledging the financial elements impacts the patient. In general economics refers to the science that deals with the production, distribution, and consumption of goods and services, or materials welfare of humankind. Economist examines health care by using economics to make structured choices for improving the access to health care services and maximizing welfare for patients with different income levels. The