The Potential Risk Of Insuring Constructit Employees

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The Castor Collins Insurance Company has the task of deciding whether to offer health insurance coverage to Constructit. This coverage needs to be affordable for the Constructit employees while at the same time allow Castor Collins to make a profit. Constructit is a company that employs 1000 people and is asking that the maximum annual premium for their employees be around $4000. Before offering an insurance plan, it will be vital for Castor Collins to minimize the potential risk of insuring Constructit employees. At the current time, Castor Collins has three insurance policies. The first is a standard plan that does not cover preexisting conditions. The second is an extended plan that will cover preexisting conditions. The last is an extended minor plan that has eliminated a services that are considered high risk for Castor Collins. As part of the decision making process, Castor Collins will need to analyze the employee demographics and their potential health care risk factors. Constructit Company Demographics Of the 1000 employees hired by the Constructit Company, there are 550 men and 450 women. The age range of the employees are between 26 and 45 years with 40 percent between 26 and 30 years old. Physical activities during work hours include 32 percent who are highly physical, 25 percent moderately active and 43 percent who are sedentary. Of the 1000 employees, 38 percent have no major health factor risks, but 10 percent are smokers and 39 percent are obese. At the current time, injuries, respiratory system diseases, digestive disorders, migraine, and allergic conditions are the cause for employee absenteeism. Castor Collins Standard Plan The Castor Collins Standard Plan is does not provide coverage for preexisti... ... middle of paper ... ...xisting conditions. Conclusion Economic decision making for HMOs can be a difficult. It is nearly impossible to predict how the policy holders will utilize services covered by any plan. To minimize its risks, Castor Collins will need to assess the population that will utilize the services by looking at the demographics such as age, lifestyle, and potential on-the-job risk factors. The Castor Collins Insurance Company has several options to offer companies such as Constructit who are seeking insurance coverage for their employees. In an effort to reduce its risks and avoid loss of profits, Castor Collins could offer insurance coverage that does not cover preexisting conditions such as diabetes, high cholesterol, and vision services. However, in order to increase its profitability and offer a better plan for Constructit, an extended minor plan will be offered.

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