Economic Issues Simulation Paper

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Economic Issues Simulation Paper
HCS 440 – Economics: The Financing of Health Care

Economic Issues Simulation Paper
Health care system has evolved tremendously in the last few years, with many changes with the health care laws including but not limited to Universal Health Care, many individuals have choices when it comes to their coverage. According to healthcare.gov, in January of 2015, an employer with 50 or more full time employees will have to make an Employer Shared Responsibility Payment if a full time employee gets a lower health coverage premium cost if insurance is purchase in a marketplace. However, employers are not subject to this law if the numbers of employees are lesser than 50 but are still
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In January of 2006, Castro Collins was approached and met with two groups of people for health insurance coverage. These groups are Constructit and E-editors, neither of them have group employer’s insurance. Constructit have 1000 people and they are willing to pay a maximum of $4000 per person as an annual premium, meanwhile E-editors will pay a maximum annual premium of $4500 per person with 1,600 people. Castor Collins offers three types of health plans: Castor Standard, Castor Enhanced, and the customized plan called Castor Enhanced Minor. The standard plan does not cover pre-existing medical conditions, the enhanced plan, however, cover pre-existing medical conditions and offers more services. Castor Enhanced Minor is a customized plan that is almost equivalent to Castor Enhanced with somewhat lesser services that requires high utilization.

Demographics and Health Care Risk Factors There are 550 men and 450 women employees in Constructit with ages 26 to 45 and 60 percent from this age group ranging from 26 to 42 are married. This means, spouses and children need to be considered in getting health plan. Also, great physical activities are involve within thirty- two percent of the people at Constructit, while 25 percent of the people has moderate physical
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