Question: Two recent graduate studentsone from an MBA school program and the second from a Masters in Public Health Programhave decided to start a new venture
Two recent graduate studentsone from an MBA school program and the second from a Masters in Public Health Programhave decided to start a new venture promoting a wellness app. After a year of testing the program, which involved offering various levels of rewards to users who tracked their behaviors on the app, they received some initial venture funding. The partners were able to hire ten employees to help roll out the app to small- and medium-sized firms under one hundred employees. These firms were self-insured. Believing in also providing good insurance to their own employees, they decided that providing some choice was also important. However, they also wanted to consider how they might do so without being too directive to consider promoting one of the three alternatives that was being offered to their employees. The partners decided to be fair with their contribution to the employees. It would be equal; however, one plan with the broadest coverage required a $200.00 per month contribution, the middle tier plan was $150.00, and the plan with the least coverage was $75.00. The least expensive plan was the most restrictive in terms of provider and facility choice and had the largest deductibles for services. The companys workforce was primarily between the ages of 25 and 40 years old; married employees accounted for 40 percent, and of that, half of them had children. Suggest a strategy that would promote a specific plan that you believe would be best given the profile of the workforce and the underlying logic for your strategy.
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