Constructit Insurance Selection
Economics: The Financing of Health Care
HCS 440
December 27, 2013 Constructit Insurance Selection
Companies that are considering offering insurance to employees must make some decisions on plans, costs to both the business and the employee, and services provided. The insurance company offering the insurance looks at the level of coverage they are willing to provide for the services they will cover and to make a profit. This becomes a delicate balance of offering quality insurance coverage while making a profit. Castor Collins is evaluating the best selection based on the coverage requested by the separate companies and the amount the companies are willing to pay per employee. This student will analyze the data put together through the simulation assignment as the Vice President of Strategy and Financial Planning at Castor Collins with the information gained about both companies and advice from other professionals at Castor Collins regarding the chosen business, employee demographics, health concerns, premiums, and plan selection.

Company Selection
Approaching Castor Collins for insurance are Constructit and E-Editors. Both companies are seeking insurance plans for their employees, but both companies have different amounts the employees are able to pay towards an insurance plan. Constructit has 1,000 employees and are willing to pay $4,000 per employee towards a maximum annual premium. E-Editors have 1,600 employees and are willing to pay $4,500 per employee towards a maximum annual premium. This may appear to be an easy decision but exploring other factors is necessary.
After extensive review of the data, Castor Collins has decided to give Constructit and not E-Editors an insurance plan. Castor Collins is offering their Castor Enhanced Minor plan minus obesity coverage to keep the plan under the maximum annual