STATEMENT OF PROBLEM The potential Obama Care may have on already implemented benefits for hourly employees and

the potential benefits this new option. We will also examine the potential for elimination of benefits for hourly employees and, if so, where and to whom will these potential money savings go. PURPORSE AND SCOPE OF WORK The purpose of this report is to determine the effects any changes may have on the company and its profits. This company has developed a reputation for a high level of respect for the employees and an ethical fair wage and benefit package for full time workers. Their business philosophy differs from many other corporations in similar markets. Will the encouragement to use offered medical benefits or a loss due to equal benefits offered by the new government health care program be a driver for increasing profits and increasing employee benefits. If benefits stay the same, reduce in price, or are eliminated, what could be the potential mood of existing employees? And will higher management and the CEO see changes in profits and bonuses. SOURCES AND METHODS OF DATA COLLECTION Primary research and collection of data will rely heavily on the most recent benefit data and packages put out by the company. Because the Patient Protection and Affordable Care Act will begin to go into effect October first there should be new data available or released soon. Secondary research will be collected via the previous years earnings statements. PRELIMINARY OUTLINE The preliminary outline for this report is as follows: I. What is the business philosophy regarding Costco employees? A. How did the company get the reputation of being a good employer? B. Why does the company believe it is important to keep employees satisfied? II. What are the current benefits offered by the company to in store employees? A. What if any are the different benefits offered to full time vs. part time employees? B. What if any are the different benefits offered to different level of managers within store managers? C. What are the differences of benefits within the levels of all employees? III. Will Pricing change for employees with the implementing of the PPACA? A. Will there be a price increase for benefits available to employees? B. If costs increase what percentage of cost will be reflected in cost for employees? C. To keep cost down will there be a reduction in staffing at store levels? IV. If deciding to allow the PPACA to insure employees or continue traditional benefits what could the cost benefit be? A. If this choice is made could the will the savings/loss be reflected in pay for employees? B. What could be a potential gain if health benefits are removed? C. What could be a potential gain if health benefits are not removed? D. Could this allow Costco to open up more employment opportunities if either option is implemented? V. How can we measure benefits/gain and/or loss with each option? A. How do we evaluate these outcomes? B. How is gain or loss measured? TASK ASSINGMENTS AND SCHEDULE Each Phase of this study will be completed by the following dates:

Secondary research: Ryan Davis Current Benefit package analysis (prior to 10/01/2013): Amanda McIntosh Current Benefit package analysis (post 10/01/2013): Mariah Gorman Comparison of cost if either outcome is chosen: Tiffany Ceragioli Final report: Aaron Broadsworth/Tiffany Ceragioli

October 05, 2013 October 12, 2013 November 09, 2013 November 16, 2013 December 01, 2013