Amazon, Apple, Facebook, Google, Ebay and a few more Silicon Valley giants have decided to run a united insurance scheme, whereby all of their employees are going to be covered by the same insurance plans. They are also considering starting, or acquiring, their own health care system, which would serve their employees and their families and anyone else who may, in the future, decide to purchase insurance from this new insurance scheme. Even though the companies have signed an agreement that they will all participate, the details of how to do all this are still being ironed out. Amazon CEO Jeff Bezos has asked you for a quick concept note, or brief outline, of how you would approach rolling out this new insurance scheme.

Summarize your current thinking about the following problems in no more than 250 word.

How would you structure the insurance contract?

Should all services be covered and how much, if any, of the cost should be paid by the patient/employee?

Should everyone participating in individual plans be charged the same insurance rate? Why?