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

$\backslash$table$[[$information is shown below:,,$],[,$ABC Company,Average primary care$],[$Age Band,$\backslash$table$[[$Number of$],[$males$]],\backslash$table$[[$Number of$],[$females$]],$visits per ye$,],[$Males$,$Females$],[20-29,285,325,2\mathrm{.}10,3\mathrm{.}18],[30-39,96,100,2\mathrm{.}60,3\mathrm{.}52],[40-49,53,57,3\mathrm{.}28,3\mathrm{.}93],[50-59,36,36,4\mathrm{.}14,4\mathrm{.}43],[60+,7,5,4\mathrm{.}98,5\mathrm{.}04]]$

Each primary care physician can handle about $3,000$ patient visits per year, for which he or she is paid paid $$180,000.$ What primary care rate $($PMPM$)$ will Families First propose to ABC Company?

ANSWER

Visits per year for all ABC employees

Visit capacity per primary care MD per year

Required primary care MDs

Compensation per primary care MD

Annual cost of primary care MD

Number of ABC members

Primary care cost per member per year

Months per year

Primary care cost per member per month