Economic Issues Simulation Paper

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and Castor Enhanced Minor is a customizable plan that will allow specific services to be eliminated from the employers insurance plan to lower premiums and allow for higher profits.

As a member of the Castor Collins representative team, evaluation have been made using data collected and compared to suggest the best company to maximize the company profit and minimize risk to the company. The best insurance plan for Constructlt was determined to be Castor Standard. When deciding what plan would allow for the best profit to Castor Collins, a number of concerns were addressed. It was noted the age of employees were 26 to 45, 38 percent of the group were diagnosed as having no major health risks, but there are major concerns the high numbers of smokers and obese employees. The obesity creates greater potential risks to the employees such as: high blood pressure, diabetes, and heart disease, this can in turn create risk of lower profits for Castor Collins. Because the age and health risk of the employees of Constructlt lead Castor Collins to believe there are not many pre-exsiting conditions that would need to be covered and with the designated $4,000 Constructlt was willing to pay for preiums Castor Standard was deemed to maximize the company profit and minimize the potential risk to the company. Casot Standard is able to charge Constructlt $3,428 for premiums and lead to earnings of $3.43 million dollars.

The best plan established for E-Editors was Castor Enhanced Minor. When evaluating E-Editors’ health profile, Castor Collins noticed the age of employees was between 35 to 54 years old, many of the employees have been diagnosed with stress-related injuries, vision problems and a number of major health risks that included obesity, high cholesterol, high blood pressure, and diabetes. It was also taken into account that only 22 percent of the company was diagnosed with having no major health risk, the remaining 88 percent have a major health risk and can create risk that will potentially effect the profit of Castor Collins. Choosing Castor Enhanced Minor, allowed a customizable plan that would allow preexisting medical conditions to be covered but also allowed services that had a probability to not be needed to be taken out of the plan, this allowed for lower and more manageable premiums. When evaluating the plan it was noted the high number of employees that have been diagnosed with obesity, so the obesity treatment was left in the insurance plan and can have the potential to change some major illnesses including high blood pressure and high cholesterol. When omitting inpatient services within the company, substance abuse treatment and male/female sterilization were chosen due to the low number of alcoholic dependent employees and the higher age of employees. When considering the outpatient services it was important to keep vision screening and hearing screening due to the long hours in front of the computer and higher age group of the employees. Custodial care was excluded from the plan because it was regarded as not necessary to the employees and allowed for lower premiums. Castor Enhanced Minor allows Castor Collins to charge E-Editors $4,452 for premiums and allowed earnings of $7.12 million.

The decisions Castor Collins selected in the simulation could have been chosen in many different ways to produce different outcomes, each different plan would have created different premiums and profits. This shows that health care economics are complex and offer continuous doubts which will have an impact in any decision. This paper discussed two companies seeking health insurance through Castor Collins Health Plans, through analyzing demographics of the employees and medical profiles, a decision was made to maximize the profit and minimize the risk for the company.

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