Economic Issues Simulation of Castor Collins Health Plans

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Abstract Castor Collins Health Plans, a regional health maintenance organization (HMO), in the state of Pantome provides HMO health insurance and health care services to enrollees through its statewide network of physicians and hospitals. E-Editors, a company with 1600 employees has asked Castor Collins to find an employee health insurance plan that accepts preexisting conditions at a maximum premium of $4,500 per person. Castor has two plans, which may fit the client's demands. This paper converses the selection method including risk factors as compared to premiums that the company is willing to pay. In addition, the paper also considers the selection method of Cigna as a comparison to data available for Castor Collins. Economic Issues Simulation Paper Castor Collins Health Plans is a regional HMO founded in 1999 in the state of Pantome (University of Phoenix, 2011). Using a capitation model to pay its network of health providers, the HMO provides health insurance and health care services to enrollees statewide (University of Phoenix, 2011). Castor Collins currently has 100,000 enrollees throughout Pantome and is actively pursuing to companies to increase this number. The fact that Castor is currently in expansion mode may give the companies an advantage in terms of bargaining for rates. Because Castor is a small company trying to become a big one, acquiring new clients is very important to the company. On January 2006, E-Editors, which comprises 1,600 people,

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