Healthcare Economics

Health Care Economics Issues HMO Simulation paper

University of Phoenix

HCS/440 ECONOMICS: THE FINANCING OF HEALTH CARE

March 13, 2012

V. Lynn Waters

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 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. Castro Collins Health Plan uses a capitulation model through its network statewide of doctors and hospitals to pay its health providers. As vice president of the organization, alone with the Chief Financial Officer Helen foureman chief medical officer Jonathan Wikes, and the executive vice president of planning and development Adam Hunter, together will put together a plan for the growing need of Castro Collins. Castro Collins was approached by two separated groups of people for health insurance. Either group has employer insurance which means both groups will pay for their own insurance. The first group, Constructit consists of 1000 people who are willing to pay a maximum annual premium of $4000 per person while the second group, E-editor consists of 1,600 people who are willing to pay a maximum annual premium of $4,500 per person.

Health Care Economics Issues HMO Simulation paper

* The chosen company for this paper that was selected is E-editor. Things that will be presented are a profile of the chosen company including the demographics of the employees, the health care risk factors (potential areas of high utilization), and the premiums the company is willing to pay. Discussion will also...