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Submitted by randrews71 on August 21, 2007
Category: Business
Words: 4562 | Pages: 19
Views: 361
Popularity Rank: 25,304
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Section 1
Long-term financing policy & capital structure.
Blue Cross Blue Shield of South Carolina a large insurance company that houses and operates several insurance contracts. One of these contracts is called TRICARE. The TRICARE programs are available to family members of active duty military service members and also to military retirees and their dependents. These dependents include:
· Spouses
· Unmarried children under age 21
· Unmarried children under age 23 who are full-time students
· Stepchildren adopted by the sponsor
· The TRICARE program provides health care to more than 8 million beneficiaries.
Those who are eligible must be listed in the Defense Department's worldwide, computerized database, the Defense Enrollment Eligibility Reporting System (DEERS). The Defense Enrollment Eligibility Reporting System (DEERS) is a military database that lists everyone who is eligible for TRICARE benefits People age 65 or older who are eligible for Medicare can receive TRICARE For Life benefits.
The government selects a civilian healthcare organization to serve as Managed Care Contractor for TRICARE. This contractor is Blue Cross and Blue Shield. This contractor supplements all military direct care for TRICARE beneficiaries in the region. Consequently, The contractor, Blue Cross and Blue Shield uses HealthNet Foundation to gather financial support to the TRICARE contract. HealthNet Foundation serves as the prime and facilitates all financial transaction of TRICARE contracts.
Capital Structure
An appropriate capital structure is a critical decision for any business organization. The decision is important not only because of the need to maximize returns to various organizational constituencies, but also because of the impact such a decision has on an organization’s ability to deal with its competitive environment. The prevailing argument is that an optimal capital structure exists...
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