The Cost of Health
Market Sizing Business Operations Strategy
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Prompt - Part 1
The CEO of the largest grocery retail chain in the U.S. sits with you in a meeting and says, “I’m spending a lot of money annually on health care insurance costs for my workforce. I need to bring these costs down.”
Assume one standard plan per person with the same cost. Assume employees with families insure all family members.
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Traps
¤¤ Understanding that the company pays health care costs for employees and family members
¤¤ Assuming that all employees are covered under the health care insurance of the company (some covered under spouse’s health care plan, etc.)
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Business Acumen 1
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Common Sense & Practicality
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Disregard retirees who are still covered under the company health insurance plan.
Analytical & Problem Solving Skills
Communication & Presence
Guide - Provide only if requested
Of this 80%... Percentage of employees with family: 75% Average family size: 3 people Disregard government subsidies for health care.
qualitative
Notes 1
How would you advise the CEO?
Number of employees: 186,000 Assume 80% of employees are subscribed to the company’s health care insurance plan.
quantitative
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Creativity 1
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Energy & Fit 1
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