BA- Report

Exhibit 4: Analysis of Cost Implications

Cost Saving Strategy:

Copay

· Dollar-for-dollar savings equal to amount of copay

Deductible:

· Health insurance – 15% savings of benefit cost

Required probationary periods:

· Health insurance – 5% savings of benefit cost

· Dental insurance – 10% savings of benefit cost

Improved claims processing:

· Unemployment compensation – 8% of benefit cost

· Workers’ compensation – 3% of benefit cost

· Short-term and long-term disability – 1% of benefit cost