Economic Issues Simulation
Mary Mulanax
HCS/440
November 14, 2011
University of Phoenix
Richard Harley Smith

Economic Issues Simulation
I am Mary Mulanax I am the Vice President, Strategy and Financial Planning at Castor Collins. My duties include pricing plans and setting insurance premiums for our potential clients. Castor Collins was approached by two companies looking for employer insurance and both companies have a set rate their employees are able to pay for premiums since both groups will have to pay for his or her own insurance (Axia College, 2006). The first company is Constructit that consist of 1,000 people and E-Editors that consist of 1,600 people. It is up to my team to come up with a plan the meets Constructit
We did not choose Castor Standard because for one it did not cover preexisting condition. The premium is within payment range enrollees can pay and our profits would be higher. The cost associated with Castor Collins providing services to Constructit does not include any copayment the enrollee has to pay. For example for inpatient hospital services for Standard the enrollee pays $114 where in Enhance they pay $144. For emergency physician or hospital care Standard is $310 where Enhances is $388. For outpatient services like physician visits the in Standard the enrollee would pay $56 and in the Enhanced he or she would pay $70. If the enrollee was to need outpatient surgery for standard he or she would pay $305 where with enhanced the cost is $381. Here is the expected utilization of services when Castor Standard or Castor Enhanced is provided to Constructit. On average utilization of the services in the population of color scheme are for the age group of 26 through 45. Inpatient hospital services are 3% for standard and 4% for enhanced with the annual average is 6% for standard and 8% for enhanced with the surgical benefits the same. For emergences the expected utilization is 6% and the annual average is the same for standard whereas for enhanced the expected utilization is still 6% however the annual average is 8% for inpatient services. In standard most of the expected utilization is anywhere from 3%