Prydain pharmaceuticals is reviewing it employee

Assignment Help Business Management

Reference no: EM13365275

Prydain Pharmaceuticals is reviewing it employee health-care program. Currently, the company pays a fixed fee of $300 per month for each employee, regardless of the number or dollar amount of medical claims filed. Another health-care provider, ABC Health, has offered to charge the company $100 per month per employee and $30 per claim filed. If your calculations result in non-integer (non whole numbers) results, please leave them that way and do not round the results to integer values.

a) Based on this information, over what range of claims filed per month per employee should Pyrdain stay with its current program and for what range should it select ABC Health's offer?

b) Suppose that the average number of claims filed per month per employee is currently five (5). ABC Health has indicated that the $30 per claim filed is negotiable. With everything else being the same, what is the maximum Prydain would be willing to pay to be indifferent between the two plans?

d) Suppose a third insurer, MedCare, charges $200 per month per employee and $10 per claim filed. Over what range of claims filed per month would Pyrdain prefer each of the two alternatives? For this analysis, do not consider the current plan (fixed fee of $300 per month per employee).

Reference no: EM13365275

Questions Cloud

Organizational behavior a manager is promoted to director : organizational behavior a manager is promoted to director above other managersa manager is promoted to a new position

Employee drug testingwhat are the issues involved with : employee drug testingwhat are the issues involved with employee drug testing? what safeguards can be put in place to

Detailed explanation to consumer behaviordefine the term : detailed explanation to consumer behaviordefine the term social class system and list and describe the social classes

Important information about buying behaviormarketing call : important information about buying behaviormarketing call for businesses to understand how people buy things so lets

Prydain pharmaceuticals is reviewing it employee : prydain pharmaceuticals is reviewing it employee health-care program. currently the company pays a fixed fee of 300 per

Max weber amp mainstream managementthe mainstream : max weber amp mainstream managementthe mainstream management has been dominant in its approaches in the industrialized

Eval factors that influence the planning function of : eval factors that influence the planning function of managementindividual assignment management planning paper-attain

Description of performance measureswhen a company : description of performance measureswhen a company establishes performance measures should they consider how these

Strategies to build relationshipswhat two strategies could : strategies to build relationshipswhat two strategies could be used to help build internal and external relationships

User Account

All Pages