2008 Excellence through Ethics Essay Contest Scenario
 

At 51, Roger is the manager at the River Valley Co-op market, a small but enduring co-op market focusing on locally-grown organic produce. Roger started at the co-op as an hourly wage stock boy and is one of its most loyal and well-liked employees. With an annual salary of $38,000, Roger’s wife Mary supplements their income by running a daycare in their home, to help pay the rent. Finances are tight: their eldest child is graduating high school and wants to attend college, their car needs a new transmission and they are maxed out on their three credit cards. With a meager savings account of about $2,500, they cannot afford health insurance.

Although the co-op does not provide its employees with healthcare coverage, it does offer some low cost health screenings. Roger took advantage of a recent screening, which included a test for prostrate cancer. He never expected to find out that he may have early onset prostate cancer, but that was the result. Mary made him see a doctor, who estimated that treatment and follow-up could cost up to $50,000.

The doctor advised him to apply for a personal health insurance policy to see if he could get coverage. Roger happens to know Walter Smith, who owns Smith, Lofkins and Johnson, a local insurance brokerage that sells policies offered by large health insurers, because Mr. Smith buys his groceries at the co-op every week. Roger mentioned to Mr. Smith that he was going to submit an application for health care coverage and Mr. Smith said he would be on the look-out for it.

Janet has been working for Mr. Smith at the insurance brokerage during the summer between her junior and senior years in high school, doing clerical work to earn money for college. She really likes the job and thinks Mr. Smith is a good boss. He treats people well and has taught her a lot. He is courteous and thorough, friendly and concerned. She also likes how he gives back to the community and how the insurance company he represents donates a big portion of its profits to its charitable foundation, which subsidizes children’s emergency treatment at the county hospital.

One day towards the end of the summer, Mr. Smith was reviewing new insurance application forms, including the one Roger had sent in. He noted that Roger’s form revealed the possible prostate problems. Mr. Smith grimaced. If Roger had applied before the condition was discovered, he would be fully covered for treatment by the new insurance policy, at a relatively low rate. But now there would be a question about his qualification for coverage and the price he would be charged, since insurance policies usually restrict coverage for pre-existing conditions. Thus, the chances are good that they will reject Roger’s application for coverage at a reasonable cost. Mr. Smith has seen that happen many times.

Mr. Smith calls Janet over to his desk and explains that the date written on the application for insurance will be the date of coverage, after which claims can be made. Mr. Smith asks Janet to reJanet hesitates. If she does not change the application, the potential costs of Roger’s medical bills will ruin him and his family. He may decide to forego treatment altogether, which could be catastrophic. If Janet does change the application then Roger’s medical bills will paid by the insurance company, but the costs will be passed on to the company’s shareholders and to other policy holders through higher premiums, and the foundation will receive less money to help disadvantaged children. And, Mr. Smith might not If you were Janet, what would you do and why?