Economic Issues Simulation Paper

A fundamental issue in health care reform in the U.S. is negotiating health care coverage in the workplace. Many Americans receive health benefits through their employer or through their spouse’s employer, benefits that are provided and arranged as part of a salary package or an increased wage. However, economist’s state there is “confusion” between the two different ideas of what payment for health care and health insurance means to U.S. business ( Montagne, 2002). One notion, held by business managers, is that health care costs are merely part of doing things, and reducing the costs of insurance will in return increases profits. A second notion, which is commonly shared by most economists, upholds that heath costs or health insurance premiums ultimately come out of what would otherwise be money wages for employees ( Montagne, 2002). Therefore a decrease in health costs (implying a reduction also in benefits) must be offset by an increase in money wages. Nonetheless, as a whole, health care insurance offered in the workplace is important to both the employer and the employees. Primarily, health insurance protects an individual (family members) from financial loss for costs acquired because of an injury or illness (Gross, 2017) . There are numerous reasons as to why it makes good business sense for employers to supply insurance benefits to their employees and for their families. Some of those reasons include but are not limited to tax advantages, increased competition, lower insurance costs, reduced operating expenses, and improved morale and productivity (Gross, 2017) . Summary
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Economic Issues Simulation Paper 3 As a representative of Castor Insurance, the primary job objective is to maximize profit and minimize risk for the company. 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. Caster Collins was approached by two companies looking for employer insurance. Both companies have a set rate their employees are willing to pay for premiums since both groups will have to pay for their insurance. As of now neither companies offer health insurance to their employee’s. As result of this, the individuals working for either company pay for their health insurance.

Constructit is the first company; they consist of 1,000 people an…………………….

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