Bay Pine Medical Center estimates that a capitated population of 50,000 would have the following base-case utilization and total cost characteristics: In addition to medical costs, Bay Pines allocated 10% of the total premium for administration/reserves.

What is the PMPM rate that Bay Pines must set to cover medical costs and administrative expenses? Remember that Inpatient Days is per 1,000 enrollees. Also, the entire capitated population is 50,000.

Choice: $45.98

Choice: $53.79

Choice: $65.73

Choice: $100.00

Service Category Average Cost per Day General Surgical Psychiatric Alcohol / Drug Abuse Maternity Total Inpatient Days per 1,000 Enrollee 150 125 70 38 42 425 $1,500 $1,800 $700 $500 $1,500 $1,367