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Constructit Company has an approximate of 1000 workers ranging from 26 to 42 years old. Many workers in the Constructit are married, and some have extended families. Castor Collins insurance would consider offering beneficial coverage for employees’ spouses and children during its calculations of the premiums. Constructit approached Collins for health insurance with a premium payment of $4000 per person per annum.
32% of the workers are physically healthy, according to their personal profiles. 43% of the remaining workers are at risk of developing obesity and arthritis due to involvement of sedentary activities in the company. Castor is willing to offer a couple of plans to Constructit employees in order to choose a plan that will offer maximum services. The first plan is Castor Standard, which covers all health incidentals, but not any preexisting conditions. Castor Enhanced is the second plan, which covers all health incidentals including preexisting conditions.
E-editor is a company that has an approximate 1600 employees who will pay $4,500 annually. Comparing E-editor with Constructit Company, the workers in E-editor have a higher sedentary lifestyle than Constructit due to high usage of computers. More than 95% of the workers in this company use computers and have a high likelihood of developing eye-related illnesses. Lack or little exercise of employees in E-editor, result in developing obesity, high cholesterol levels, and stress related illnesses.
Castor Collins Health Insurance Company is also willing to offer two health plans to the employees of E-editor that fit their demands. The selection method of the health plan depends on the risk factors predisposed to the employees, and premiums each employee is willing to pay. In January 2006, employees of E-editor did not have any health insurance coverage; hence they were liable to apply for Castor Standard or Castor Enhanced.
Changes to the Castor health insurance strategy result in the development of the Castor Enhanced Minor, which is most appropriate for the E-editor employees. The workers at E-editor have low, and few predisposing risks. The Castor Enhanced Minor has an advantage of covering preexisting health conditions under low service utilization. Some E-editor employees with sedentary illnesses have a high likelihood of enrolling to Castor Enhanced, which offers a wide coverage of preexisting and current health conditions.
Constructit Company has a diverse category of employees hence the two Castor health plans are applicable to the workers. The workers in the late twenties’ have an opportunity of enrolling to Castor Standard and later in the early forties’ they can enroll in Castor Enhanced that has high premium rates paid annually. Castor Standard and Castor Enhanced are health plans within the needs of Constructit employees and cover all their health care requirements. The events covered by Castor insurance are not common, but have a high likelihood of occurring, such as development of injuries.
Reasons for selecting Castor Standard
Constructit should select Castor Standard insurance plan because in every company there exist medical health problems. Although many workers in Constructit are young, some unavoidable injuries may occur and are expensive if the person lacks a health insurance plan. To develop a good working environment, employees of E-editor would enroll in the Castor Standard health plan in order to cover simple tests such as prescription services, vision and hearing screening, and physical examinations.
Reasons for selecting Castor Enhanced
Constructit has some employees that have preexisting medical conditions such as obesity, hypertension, and respiratory that require continuous care. Evaluating the insurance plan using cost-benefit analysis, Castor Enhanced will be cost-effective for the constructit employees that have chronic illnesses. The E-editor Company has many elderly employees who have preexisting medical conditions and are prone to reoccur. Employees of E-editor have a high likelihood of developing health risks due to sedentary working conditions. In addition, the employees will tend to visit the hospitals more often than Constructit employees.
Castor Enhanced health plan best fits E-editor employees. Although the health plan does not cover all the health issues of E-editor employees, the health plan offers satisfactory services to all employees. The Castor Enhanced plan gives employees the option of selecting the appropriate services according to personal health issues. Additionally, E-editor has many elderly employees that have preexisting conditions that require frequent checkups hence the need of enrolling to Castor Enhanced.
The premiums of Castor Enhanced are high, but vary among employees because premium payment rates depend on the complexity of preexisting conditions. The health plan is undergoing customization so that the company, as well as E-editor employees, benefit. E-editor Company employees are likely to pay high premiums since the company has a high number of workers with arthritis and smoking-related disorders. The high premiums cater for health care and many other health services to the employees under Castor Enhanced health plan. The Castor Collins Company and the E-editor employees should be aware that the health premiums do not offer any benefits but restore the clients to the stable state.
The Castor Standard health plan is not fit for E-editor employees due to their high health risks. Arthritis, respiratory infections, obesity, migraines, high cholesterol, allergies, and hypertension are some of the chronic illnesses with E-editor employees that the Castor Standard health plan does not cover. Cost-effectiveness analysis reveals that the Castor Standard plan to E-editor employees will not fulfill the company’s goals due to lower premiums paid annually than Castor Enhanced.
Considering previous medical conditions that exist more than six months, the terms and conditions of Castor Standard plan would not benefit the employees. Many employees would end up paying additional charges, such as consulting fees, resulting in higher health charges. Employees of E-editor should enroll in a plan that would minimize the annual health budget because the Castor Standard plan does not minimize health budget to the E-editor workers. The services covered by the Castor Standard health plan services are very minimal in comparison with the healthcare needs of E-editor employees.
In conclusion, Castor Collins is a health maintenance organization (HMO) in Pantome State that offers health insurance and services throughout the State. Two companies, Constructit and E-editor, approached it to enroll for health insurance of its employees. Annual premiums will be $4,000 and $4,500 for Constructit and E-editor respectively. Castor representatives had to compare the plans, Castor Standard and Castor Enhanced, in order to find which is the most suitable for each company.
E-editor Company has many elderly employees with preexisting health conditions; hence, the need of enrolling for Castor enhanced that covers all health conditions including preexisting health issues. Constructit has many young and energetic employees that lack preexisting health conditions. The Castor standard health plan will be the most suitable for Constructit employees since it will cover all the health conditions including injuries at work.