1. Describe the nature and causes of the employee health insurance cost problem in this case.

2. What information should the employee health benefits committee gather before making any recommendations? Why?

3. Given the desire of most employees to protect themselves from high healthcare costs, is there any way for Quality Auto Parts to continue to attract the best employees while containing health benefit costs? Why or why not?

4. On the basis of what you know about Quality Auto Parts, which of the four specific proposals would you be likely to recommend? Can the company adopt some combination of the three options? What do you recommend and why?