choosing a health care plan
TRANSCRIPT
Choosing a Health Care Company
Start Up Financial Consulting
Stephanie Heintzman (2015)
Executive Summary
A confidential start up company want to know what health care provider they should pick for employee health insurance. The company consists of 5 employees; 3 of which need general converge, 2 need coverage with more premium options. All employees have a five year contract.
It is recommended that our client chooses Central Health to provide long term health care for their employees. Employee needs will change as our client’s company grows, therefore attention to future trends is required and options may need to be reevaluated.
* All company names have been changed for the purpose of this report 2
Table of Content
2 Executive Summary
4 Background
5 Price Listing According to Employees’ Current Needs 5
6 Costs of First Two Years
7 Costs for 5 years of Health Coverage
8 Current Recommendations and Expected Growth of Client’s Company
9 Monthly Price Listing in the First Year
10 Monthly Plan Price Breakdown
11 Central Health Five Year Forecast Assuming 0.8% Annual Inflation
Background
A confidential client has 5 employees all on a 5 year contract
3 employees require general health care; 2 require more premium options
We want to evaluate different Health Care Companies, Health Care Plans, and benefits required by our client to determine which company they use for health coverage over the next 5 years.
* All company names have been changed for the purpose of this report 4
Price Listing According To Employees’ Current Needs
Regardless of the prices, our clients had certain needs
Packages require with each health care company (# of packages required):
Cantro: PPO (5)
Central Health: Open Access (3) PPO High (2)
Liberty Health: CoreMed (3) Assurant Max (2)
RedCare: HMO (3) Series 3 (2)
* All names have been changed for the purpose of this report
Health Care Company
Health Plan
Monthly Cost in First Year
(S)
Monthly Cost ($)
CantroHDHP 120.00 138.00
PPO 158.00 182.00
Central Health
Open Access 100.00 11.00
PPO Value 121.00 139.00
PPO High 183.00 211.00
PPO Open Access 137.00 158.00
Liberty Health
Open Access 115.00 132.00
Health Savings 101.00 116.00
CoreMed 135.00 155.00
Assurant Max 160.00 184.00
PPO 140.00 161.00
Red Care
PPO 118.00 136.00
HMO 85.00 98.00
Series III 135.00 155.00
Individual HAS 121.00 139.00
5
Costs of First Two Years
Considering employees needs and plans required, this demonstrates the costs of the first two years.
Central Health have the lowest annual costs, followed by RedCare
Cantro demonstrates the highest first year costs
Cantro
Centra
l Hea
lth
Libe
rty H
ealth
RedCar
e0
4000
8000
12000
Costs of Health Care Coverage
Cost of First Year Annual Cost
* All names have been changed for the purpose of this report 6
Costs for 5 Years of Health Coverage
This chart demonstrates the costs for five years (length of employee contract) of health coverage by company.
Central Health is the cheapest, and best company to choose for long term care
Year 1 Year 2 Year 3 Year 4 Year 50
2000
4000
6000
8000
10000
12000
CantroCentral HealthLiberty HealthRedCare
* All names have been changed for the purpose of this report
Current Recommendations and Expected Growth of Client’s Company
If employee needs are expected to stay the same, we recommend choosing Central Health
However, always be prepared for changeShould the company plan to grow, with more diverse
needs, the following factors should be considered: Average price of plans Min price offered Max price offered
8
Monthly Price Listing in theFirst Year
* All names have been changed for the purpose of this report9
Cantro Central Health
Liberty Health
RedCare
Average Cost
139 135.25 130.2 114.75
Min Monthly Cost
120 100 101 85
Max Monthly Cost
158 183 160 135
1070
130190
Health Plan Breakdown by Company
Mon
thly
Fee (
$)
RedCare offers the cheapest first year year of coverage
Central Health offers the largest range of prices in the first year
Monthly Price Listing in theFirst Year
* All names have been changed for the purpose of this report9
Cantro Central Health
Liberty Health
RedCare
Average Cost
139 135.25 130.2 114.75
Min Monthly Cost
120 100 101 85
Max Monthly Cost
158 183 160 135
1070
130190
Health Plan Breakdown by Company
Mon
thly
Fee (
$)
RedCare offers the cheapest first year year of coverage
Central Health offers the largest range of prices in the first year
* All names have been changed for the purpose of this report10
Cantro Central Health
Liberty Health
RedCare
Average Cost
160 129.75 149.6 132
Min Monthly Cost
138 11 116 98
Max Monthly Cost
182 211 184 155
25
125
225
Health Plan Breakdown by Company
Mon
thly
Fee (
$)
Central Health offers the cheapest, and the most expensive plan
Central Health offers the largest range of prices in the first year
Monthly Plan Price Breakdown
Central Health Five Year Forecast Assuming 0.8% Annual Inflation**
**Sources: Stats Canada. (2015). Consumer Price Index, April 2015. Retrieved from: http://www.statcan.gc.ca/daily-quotidien/150522/dq150522a-eng.htm
* All names have been changed for the purpose of this report
Year 1 Year 2 Year 3 Year4 Year 50
500
1,000
1,500
2,000
2,500
3,000
3,500
R² = 0.472850661303239
R² = 0.992518851173077
R² = 0.991468423661971
R² = 0.991397581582345
Annual Prices of Central Health Plans
Open AccessLinear (Open Access)PPO ValueLinear (PPO Value)PPO HighLinear (PPO High)PPO Open AccessLinear (PPO Open Access)
Cost
($)
The market and prices will fluctuate
Reevaluate options overtime as employee needs change
11
