Fixing the Health Care Plan Case Study You are the Vice President of Compensation & Benefits for Wolfman Enterprises, a

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Fixing the Health Care Plan Case Study
You are the Vice President of Compensation & Benefits for
Wolfman Enterprises, a
large, high-technology products manufacturer that employs
approximately 65,000 in the
United States.
You have just learned that health insurance premiums for the
following fiscal year were
expected to increase approximately 26%, up dramatically from the
16% increase of the
previous year and the 14% increase the year before that. Adding to
your concern is the
projection that, by 2015, the company’s $375 million annual
health-care bill would
increase to a staggering $613 million.
You have been asked by Wolfman’s top management to develop a
custom-designed
health insurance program for the organization that would hold down
health-care
premium costs to a reasonable level while ensuring that employees
would retain
adequate health care coverage.
The current health care plan is relatively traditional. The company
pays the entire
health care premium for single employees (approximately $480 per
month); dependent
coverage is available, but the employee pays the entire cost of
this coverage.
There is a $250 deductible, and no preferred provider network. Once
the employee’s
deductible is met, the policy pays 80% of all covered expenses up
to $5,000. Once the
$5,000 threshold is met, the policy then pays 100% of covered
expenses up to a lifetime
maximum of $2,000,000 per person. Thus, each employee has an annual
out-of-pocket
maximum of $1,250.
Preventive care (an annual physical, routine Pap smears and annual
mammograms for
women, and PSA for men) are covered at 100% with no deductible.
Employees also
have a prescription drug benefit. After payment of a $100 annual
deductible (per
person), generic prescription drugs are available with a $10 copay;
brand-name
prescription drugs are available with a $25 copay.
Top management has asked you to provide them with a preliminary
list of ideas to be
considered, and how you believe employees would accept these
changes, because the
company is concerned about employee retention and does not want to
lose valued
employees.
Based upon the material presented in the textbook and your outside
research,
prepare a report that addresses what health care initiatives
Wolfman might undertake in
order to deal with the rapidly escalating health care costs. Make
certain that you
consider the effects the initiatives would have on the employees
and their acceptance of
the changes.
You should use a minimum of two (2) outside sources in this
paper. Please be sure to
appropriately cite all sources using APA formatting.
Your assignment should be 3-4 pages long, double-spaced, using
12-point font,
excluding cover page, attachments, etc.
Keep in mind that, while there is no one single "absolutely
correct" approach to this
problem, this is not an opportunity for opinion alone. Grading will
reflect your reasoning
and critical thinking skills, your ability to integrate what you
have assimilated from
course material, the clarity of your response and its appearance.
Please see the rubric
posted under the "Resources" tab in the main menu of the course for
additional
guidelines on grading.