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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

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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 information is shown below: Number of Members Number of Visits Age band 20-29 30-39 40-49 50-59 60+ males 285 96 53 36 7 477 females 325 100 57 36 Males 300 250 174 149 35 907 Females 332 352 224 159 25 1093 523 Each primary care physician can handle about 2,000 patient visits per year, for which he or she is paid paid $165,000. What primary care rate (PMPM) will Families First propose to ABC Company? Set up problem and solution below: Number of Visits Visit capacity per primary care physician Required primary care MDs 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 #DIV/0

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