Part I: The government of Islandia (which has demographics and politics that are remarkably similar to...

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Part I: The government of Islandia (which has demographics and politics that are remarkably similar to those of the U.S.) recently passed a law that requires health insurance companies to charge a uniform flat fee for providing health insurance to their enrollees, regardless of the age, history, or health-status of any enrollee. This uniform fee is calculated to be the average per capita cost (including a reasonable profit for health insurers) of providing medical care to all of the citizens of Islandia. Shortly after this law was passed, a senior vice-president for enrollment at the XYZ Health Insurance Company in Islandia made the following proposals at a senior executives' meeting: a) That XYZ should move all of its offices to second-floor locations in suburban low-rise office buildings that do not have elevators; and b) That XYZ should require that all new enrollments (and all re-enrollments by existing customers) must be made in-person at these new offices. Why do you think that she made these proposals? (6 points) Part I: The government of Islandia (which has demographics and politics that are remarkably similar to those of the U.S.) recently passed a law that requires health insurance companies to charge a uniform flat fee for providing health insurance to their enrollees, regardless of the age, history, or health-status of any enrollee. This uniform fee is calculated to be the average per capita cost (including a reasonable profit for health insurers) of providing medical care to all of the citizens of Islandia. Shortly after this law was passed, a senior vice-president for enrollment at the XYZ Health Insurance Company in Islandia made the following proposals at a senior executives' meeting: a) That XYZ should move all of its offices to second-floor locations in suburban low-rise office buildings that do not have elevators; and b) That XYZ should require that all new enrollments (and all re-enrollments by existing customers) must be made in-person at these new offices. Why do you think that she made these proposals? (6 points)

Answer rating: 100% (QA)

The senior vicepresident for enrollment at XYZ Health Insurance Company in Islandia may have made these proposals for the following reasons 1 Cost Red... View the full answer