Diversified Industries Corporation (“DIC”) is an international conglomerate with offices throughout the United States. It maintains an administrative function center in Cedar Rapids, Iowa which employs 1,500 people out of the 30,000 employees of DIC worldwide. DIC maintains a self-funded health insurance plan and utilizes a mechanism where its workers are essentially enrolled in high deductible plans that can be paired with health savings accounts created by DIC. DIC has chosen deductibles of $3,500 on a single coverage plan and $7,000 on a family plan. Additionally, the employee is responsible for a $50 co-pay. DIC has chosen Wellmark Blue Cross/Blue Shield of Iowa to act as a third party administrator of its health care program in the United States. Wellmark has agreed to assist DIC in the administration and payment of claims and, further, has offered its Iowa preferred provider physician network and hospital organization to DIC for all Iowa employees for which it will receive a per member per month fee from DIC. All DIC employees are entitled to state statutory mandate benefits. DIC employees are encouraged to participate in DIC wellness programs and, if the employee achieves targeted goals for blood 2 pressure, weight control, and smoking cessation the employee will receive lower copayments and deductibles than employees that do not participate in the wellness program or do not achieve the targeted goals. DIC’s prescription plan requires its employees to use Walgreens as a “health hub” for all prescription drugs. Answer the following questions:

A. Construct a health care system depicting DIC’s arrangement in Iowa utilizing a boxes and arrows diagram. Be certain to identify and illustrate the three elements common to all health care systems. 

B. Identify three (3) patient financial strategies that DIC is utilizing to bring its health care costs down. Briefly explain the economic function of the patient financial incentives and give me your opinion if they will reduce health care costs for DIC and its employees. 

C. What role will utilization of Walgreens “health hub” model play for Iowa employees? How will it assist DIC in controlling its healthcare costs?

D. If you could change on HSA e aspect of DIC’s high deductible health plan using the HSA concept, what would it be?

Answer rating: 100% (QA)

A The three elements common to all health care systems are 1 A provider network of physicians and hospitals 2 A third party administrator in this case ... View the full answer