NiraliPatel_ACC510_ResearchPaper

NiraliPatel_ACC510_ResearchPaper - Accounting for...

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Accounting for Managerial Decisions 19 Nirali Patel ACC 510: Accounting for Managerial Decisions Professor: David Knutsen
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Accounting for Managerial Decisions 29 Table of Contents: Introduction: .................................................................................................................................... 3 Corporate Culture: .................................................................................................................. 3 Purpose Statement: .......................................................................................................................... 4 Why are health care costs so high in the U.S. as compared to other countries? ...................... 5 Why does Health Insurance cost so much? .............................................................................. 5 Review: ............................................................................................................................................ 7 Administrative Cost Allocation: ........................................................................................... 11 Resource Reallocation during 2009 Economic Crisis: ........................................................ 11 HCSC Anti Fraud Cost Management: .................................................................................. 12 Health Care Reform Perspective: ........................................................................................... 12 Critical Analysis: ........................................................................................................................... 13 References: ..................................................................................................................................... 16
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Accounting for Managerial Decisions 39 Introduction: Health Care Service Corporation (HCSC) is the largest customer-owned health insurer in the United States and fourth largest overall. HCSC was founded in 1936 and is a not-for profit organization. HCSC operates through its Blue Cross and Blue Shield plans in Illinois, New Mexico, Oklahoma, and Texas and several subsidiaries to provide a variety of health and life insurance products and related services to employers and individuals. HCSC employs 17,000 people and is serving more than 12.4 million members - 38% in national employer plans, 32% in large local employer plans, 10% in a small employer plans, 10% in individual plans and 10% in government plans (Health Care Service Corporation, 2009). The products from HCSC include the Participating Provider Option (PPO), Health Maintenance Organization (HMO), Point of Service (POS) plan, and High Deductible Health Plans that are compatible with Health Savings Accounts (HSA) and Health Care Accounts (HCA) as well as traditional insurance, and Medicare supplemental plans. Patricia Hemingway is the current President and Chief Executive Officer of HCSC. This is not a publicly traded company and does not have any investors. The company is customer-owned meaning that the
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This note was uploaded on 11/08/2010 for the course MBA ACC 510 taught by Professor Knutsen during the Spring '10 term at RMU.

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NiraliPatel_ACC510_ResearchPaper - Accounting for...

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