Case Study: Green Guard Care

Green Guard Care is an insurance company that is facing financial problems especially with their margins and profits. They currently have a contract with Arc Electric that pays each employee a fixed amount of $250. The contract can be reviewed and the increasing in physician the reason for decreasing the profits ability of the company. However, Luis Pasture has asked help from his employees to find the solution to their revenue that the company has been receiving. The solutions show the increasing of the copayment of each employee or the decreasement of physician cost. Using the statistical, economical as well as ethical analysis, the report would determine the rise of physician use is dependent on the current copayment price. The allocation

Pasture raised the concerns on the increasing cost of doctors from July to August especially regarding to their healthcare contract with Arc Electric, Inc. The company fears that many aspects of their contracts would reduce their profits. The data provided could not explain the reasons for the increasing visits of the Physician in the same duration. Instead, there is a jump of data that shows the increase in from July to August in other categories. Furthermore, the number of employees covered with insurance increased by 8 people. Hence, there must be another reasons for the current employees who are visiting doctors more often. The recommendation would examine the issue and interviews specific employees who have been visiting the physician more often than

This create a leeway to determine if the doctor visits are dependent when the number of employees increases. The scatter plot models (see appendix 1.3) help determine the relationship between two variables. The analysis of the variables in this case are expenses (cost) and employee visits to the physicians. The scatter plots show the line drawn to best fit and the lines to determine if the listed variables are dependent of each other. The correlation between the data points show a slightly positive trend. This trend suggests that the numbers of visits increase as additional employees join the healthcare membership, therefore increasing costs. Finally, it is important to point out that the correlations do not equal the causation and therefore, it is merely a suggestion of the outcome. Visits per employee and the cost per visits (see appendix 1.4) were calculated to create variables showing the comparison between them over