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Cooper-Pearson is a very successful sports-marketing company with 75 employees. It has been in existence for 10 years, and it clearly has a bright future. One of the fundamental reasons for Cooper-Pearson’s phenomenal growth has been an investment in selecting the best and brightest men and women from colleges and universities throughout the United States and paying them well. Cooper-Pearson Sports Marketing has noticed that, in the past 2 years, 15 key senior employees have left the firm. Many of these men and women have joined Always on the Ball Sports Marketing Company, a competitor of Cooper-Pearson. During the exit interviews, one of the reasons that was consistently mentioned as a reason for leaving was the lack of adequate or affordable medical insurance.

Cooper-Pearson Sports Marketing managers have come to understand that a competitive compensation package must include medical benefits that employees want and can afford. They also understand that medical insurance has become an important recruitment tool in attracting quality employees. Like the company, quality coverage is extremely important, but so is cost.
Your Role

The company has engaged your services to research several insurance programs. First, compare and contrast the differences between an HMO, a PPO, and an indemnity insurance program. From the list below, select and discuss at least one other important service that Cooper-Pearson should consider when selecting an insurance program.

1. Discuss the importance of managed-care physician credentialing. 2. Explain the benefits of a prescription drug program to the employer and the employee. 3. Explain the importance of quality-management indicators in managed-care programs.

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