Summary: Economic Issues Simulation

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Economic Issues Simulation Paper Economic Issues Simulation Paper Chosen Company: CONSTRUCTIT “HMO’s, an alternative to existing fee-for-service medical care, bring together a comprehensive range of medical or health care services in a single organization. They are responsible for providing such services, as needed, to their subscribers in return for a fixed monthly or annual payment periodically determined and paid in advance. The HMO’s are rooted in well-established prototype” (Social Security Administration, 1974). The use of Health Maintenance Organizations, or HMOs, have been used in the health insurance industry for decades as an alternative to the standard fee-for-service medical care. By networking with specific physicians…show more content…
There is also the option to create a Castor Enhanced Minor plan, which is a customizable version of the Castor Enhanced plan. With the percentages of medical issues that already affect the ConstructIt staff, it is beneficial to choose a plan that covers their pre-existing conditions. However, in an effort to minimize cost for the recipients and to maximize profit for Castor Collins, it is also important to scale down some of the coverage provided by the Castor Enhanced plan – leaving the best option for the ConstructIt staff as the Castor Enhanced Minor…show more content…
The Castor Standard plan is good for several reasons. The employees of ConstructIt have a chosen limit of $4,000 for a maximum annual premium cost. Therefore the premium cost of $3,428 is a fair point to make. The Castor Standard plan also includes full coverage for all service, with the exception of pre-existing conditions – which unfortunately means less payments into the insurance company, because staff members with those conditions would not be paying into the policy. The Castor Enhanced plan does allow for patients with those conditions to purchase coverage, as well as providing full coverage of services. This translates into more payments to Castor Collins, but they also run the risk of having less beneficiaries from ConstructIt due to the high premium of

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