5 PROBLEM 1 6 Families First is a managed care plan that has been asked to submit a premium bid to ABC Company, 7 a large manufacturer in its service area. The premium bid includes the primary care for all of the 8 ABC employees. ABC has provided information about the age and gender of its employees, and 9 Families First has identified average primary care utilization rates from its own databases. This 10 information is shown below: 11 ABC Company 12 Number of Number of visits per year 13 Age Band males females Males 14 20-29 15 30-39 16 40-49 17 50-59 18 60+ 19 20 Each primary care physician can handle about 3,100 patient visits per year, for which he or she is paid 21 paid $250,00. What primary care rate (PMPM) will Families First propose to ABC Company? 22 185 203 217 89 22 205 224 159 52 34 Average primary care 23 Provide a response in each yellow highlighted box: 24 Visits per year for all ABC employees 25 26 27 28 Visit capacity per primary care MD per year 29 Required primary care MDs 30 Compensation per primary care MD 31 Annual cost of primary care MD 32 Number of ABC members 33 Primary care cost per member per year 34 Months per year 2.10 2.60 3.28 4.14 4.98 35 Primary care cost per member per month 36 37 38 Females 3.18 3.52 3.93 4.43 5.04

6 Families First is a managed care plan that has been asked to submit a premium bid to ABC Company, a large manufacturer in its service area. The premium bid includes the primary care for all of the ABC employees. ABC has provided information about the age and gender of its employees, and Families First has identified average primary care utilization rates from its own databases. This informotion ie chawn holaw