A large manufacturing company has for years offered generous health insurance to its employees. Over time, the cost of the health plan has increased considerably with the average cost being roughly $6000 per year. The firm has hired a management consulting company to make recommendations about how to reduce costs. The consulting company has recommended two steps to help the company save cost. First, they recommend that the company offer a lower-cost insurance package with much higher deductibles, copayments and coinsurance rates. This new package is estimated to initially cost less than $4000 per year. Second, the consultants recommend that the employer charge employees $100 a month if they opt for the more generous health insurance plan. Discuss in detail and provide evidence for what the likely short and long run implications are for the two health insurance plans if he firm adopts the consulting firm's suggestions.© BrainMass Inc. brainmass.com October 17, 2018, 4:51 am ad1c9bdddf
I believe you want to focus on what Economists call "Adverse Selection". In offering the new (cheaper) insurance plan, people who are healthy (i.e. exercise regularly) are going to opt for the cheaper plan with higher deductibles. If they have a major health event, they are covered, but they do not anticipate needing to heavily use the plan. As such, the healthier individuals ...
The solution discusses healthcare plans.
Strategic Plan for Fictional Hospital
Create a strategic plan for a fictional healthcare organization. Complete the following portions of that strategic plan:
1. Identify and describe the healthcare organization . Include details about the population it serves and the services it provides.
2. Identify the expectations and needs of the healthcare customer within that population.
3. Evaluate the organization's vision and mission statements in light of its customer service focus or lack thereof. In constructing your own healthcare organization you will need to construct the vision and mission statements and indicate how they create a framework for a customer service initiative.
Identify the organization's core competencies. In creating a fictional healthcare organization you will need to indicate what the organization's core competencies are and how these competencies give your organization an important difference in providing customer benefits and perceived value.View Full Posting Details