Your task is to review the objectives of the company profiled below and the business objectives provided.

Your task is to review the objectives of the company profiled below and the business objectives provided. Think about what benefit plan structure you want to offer at ABC Graphics to meet the objectives noted below. How can your plan best support the objectives of the company and what benefits are you going to offer based on the demographics of your employee population? Develop your plan design within a budget of $30,000,000. The annual payroll for ABC Company is $130,000,000. Assume that 45% of the population is single, 25% are married with no children and 30% have a family. Assume that 30% of the employees would be interested in an FSA, if one is offered. ABC Graphics is optimistic that 70% of the population will take advantage of the wellness benefit and join a gym. Approximately 25% of the population currently uses tobacco. Currently, ABC Graphics offers a PPO plan and an HMO plan, with 68% of the population enrolled in the PPO, 30% of the population enrolled in the HMO and 2% who have previously waived coverage. Lastly, ABC Graphics shares in the cost of benefits for its employees, passing on an average of 25% of the cost for medical and prescription coverage.







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