Economic Issues Simulation Paper
HCS/440
January 23, 2012
Charles Sigmund

Health care economics studies such issues as demand for medical care, pharmaceutical prices, competition among health care providers and insurers, and financing of health care services. Castor Collins has put together a plan which will help solve many issues facing the organization. The plan is built to maximize profit for the company and minimize the risk of poor choices provided to individuals who will cause the organization to fall.
Castro Collins Health Plan Castro Collins Health Plan was founded in 1999 as a regional HMO, which provides health care services and health insurance to their enrollees which consist of 100,000 peoples.
Copayment for both services is quite reasonable, with the exception of surgical benefits which is the most expensive concerning the copayment. Castro Collins will focus on the issues at hand which are finding a good and affordable plan for each enrollee that will fit their budget and one that will not cause any risk to the company. Obesity is an issue that Castro Collins must look at from both groups. The copayment for obesity treatment is $10, the annual well woman examinations is $25 considering women are more likely to go the doctor each year than men. Inpatient and hospital services for (Constructit) Castro Enhanced premium to be charged is 4, 428 making an annual earning. E- Editors premium to be charged is 4, 556 with an annual earnings of 7,289 earnings of 4,428. This is a very high premium for both groups of individuals to have to pay.
Consideration of coverage Castro Enhance and Castro Standard is the best solution for Constructit and E-editors, they both provide the premium for both companies within the allotting budget which are affordable to the individuals. The best coverage for constructit enrollees would be the Castro Enhance coverage because the premium is within the allotted budget and individuals are willing to pay. Although many employees currently have medical conditions, the plan will provide the medical services