Economic Issue Simulation Paper
The Economic Issues Simulation Paper is regarding Castor Health Plans. Castor health plan was founded in Pantome state in the year of 1999 as a regional HMO. The focus of (HMOs) Health Maintenance Organizations is to offer health care insurance and services through a nationwide system of physicians and hospitals to their enrollees. This system is completed by means of a capitation model to pay a huge group of health providers. Even though Castor has thousands of enrollees they are looking to increase the amount. As a representative for Castor it is my duty to reduce the risk factors and capitalize on profit for the company. Additional ...view middle of the document...
When looking at Constructit Company it has roughly around 1,000 employees. The Constructit Company consists of 450 women and 550 men and their ages range from 26years of age to 42 years of age. Company statics show that 32% of the employees are physically active, 25% are moderately active and 43% is sedentary. This company employee rate is high due to digestive disorders, on-the-job injuries, migraines, respiratory illnesses and other major illnesses. There is a high obesity rate within the group and the percentage is about 39%. As a spokesperson of Castor we notice that the high obesity related disease has a high risk for other illnesses.
There are about 1600 employees within the company E-Editors and their employees age ranges from 35 to 54. The jobs for this company mostly require sitting in front of the computer. About 95% of the employees have previously worked with other companies doing the same type of job. Since these employees have worked for companies similar to E-editors they have a higher risk for stressed related injuries. Castor Company notices that this can affect their employee’s health causing obesity, diabetes, and even hypertension. The company notices that this heightens the chance for more employees with pre-existing conditions.
When talking about premiums the Castor Company will should see what would aid their company growth, and not harm it. Comparing the two companies’ one company having more employees than the other meaning they would pay a higher premium. The negative aspect is more employers have a higher rate of employees that have pre-existing conditions. This problem hurt the company because the companies end up spending more money to cover the cost.
Risks versus profits
As a representative within the Castor Company believes it would be wise if they make available health coverage for the Costructit Company. Castor chose to go with this company for an array of reasons. One main reason is because their employees were more physically active and they were also younger than those at the other company. Constructit are at a lower risk and has...