DESPERATE INSURANCE SITUATIONS

DESPERATE INSURANCE SITUATIONSHealth ChoicesRising health care costs are prompting companies to reduce or eliminate their health insurance benefits inorder to save money so they can remain in business. In fact, health care costs consistently rank among thetop concerns of CEOs of the largest companies, and the rising health insurance bills are a serious problem forfirms that compete globally. Today only 50 percent of employers offer health care benefits to their employees;the rate is even lower — and descending — among small businesses. Families are also hurt by rising healthinsurance premiums: worker pay raises are frequently offset by the additional cost of their health care benefitsfor the upcoming year.Assignment: Review the health insurance options (next page) available to your company for the upcoming yearand make a recommendation for the plan that best fits your employees needs as well as the organization’sfinancial needs. Prepare a 1-2 page paper that includes the evaluation criteria – bullet points may be a usefulway to present your recommendations.Evaluation criteria:ScorePoints20Evaluate the health insurance options (next page): United Healthcare is the currentprovider, and 90% of premiums are paid by the employer. Select the best plan forthe company & compare the plan you recommend with the current plan:What are the advantages/disadvantages of your choice for the company?What are the advantages/disadvantages of your choice for the employee?20Illustrate the cost differences between the current plan and the plan you recommendfor the organization and employee.What is the company’s total annual payout, current compared to next year?What is the annual cost to the employee, current compared to next year?20Identify the issues that may result when the plan is implemented (disadvantages)If the new plan saves the company a lot of money, what is at risk?If the new plan saves the employees a lot of money, what is at risk?20Include 3 possible actions to offset cost increases to the organization.What actions can the company take to provide health insurance AND reducethe costs to the company? Is there a cost to implement the action(s)?What actions can the company take to encourage wellness? What is the costto implement the action(s)?10Prepare a 1-2 summary report of your recommendations that is grammaticallycorrect. Be sure to include sources for any actions that you found in otherdocuments.10Assignment submitted on or before due date100Total Points