Understanding Economic Time


Understanding Economic Issues Questionnaire


Professor Nanc Renninger, DBA, c. MHA

University of Phoenix

May 24, 2010

Understanding Economic Issues Questionnaire

Castor Collins was founded in 1999 and is an HMO that provides health insurance and health care services to enrollees through it’s statewide network of physicians and hospitals. Currently the company has 100,000 enrollees and is currently looking to increase this number.
Constructit and E-editors are companies currently looking for insurance coverage for their employees and are willing to pay different premiums. Taking into consideration the amount of employees, ages and preexisting condition’s or profile, the most appropriate and beneficial coverage will be formulated to suit their health care needs. Constructit will be supplying 1,000 employees with health care insurance and are willing to pay a maximum annual premium of $ 4,000 per employee. E-editors will be supplying 1,600 to their employees and are willing to pay a maximum annual premium of $ 4,500 per employee. Castor Collins will attempt to tailor the health care plans that will be most suitable and profitable for the companies. The current coverage’s are broken down into three categories. Castor Collins Health Plans will begin comparing the three to see which health care coverage better suits the companies. Castor Standard is a basic coverage has lower premiums, less coverage and does not cover preexisting medical conditions. The main area of coverage with this policy has a lower copayment, covering fewer services with a higher profitability margin. Castor Enhance covers more than the standard package and does cover preexisting medical conditions. The premium is higher because it covers more areas then the standard policy.
After reviewing Constructit health profile, there are many preexisting conditions and high risk factors that will need to be taken into...