Assignment Problem: Describe the four health plans with an eye to choosing one to offer the company's employees. Assume that the health plans and their annual per employee premiums are as follows: Health Plan: Aetna Health premium, individual $4,555. Premium, Family $11,428. MetroPlus: Premium, Individual $4,267. Premium, Family $10,540. Empire: Premium, Individual $4,217. Premium, Family $10,767. Oxford Premium, $6,029. Premium, Family $13,417.
The employer will pay 80% of the premium for individual coverage, and the employee will pay the 20% as well as the entire additional premium for family coverage. All of the plans are managed care plans. The benefit package is the same across all plans, so there is no difference between in what services are covered.