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Health Care VIP-MD is a health maintenance organization (HMO) located in North Carolina Unike the traditional foo for service model that dotermines the payment according

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Health Care VIP-MD is a health maintenance organization (HMO) located in North Carolina Unike the traditional foo for service model that dotermines the payment according to the actual services used or costs incurred, VIP MD receives a food, prepaid amount from subscbers. The por member, per month tato (PMPM) is determined by estimating the health care cost per enrole within a geographic location. The average health care coverage in North Carolina costs $488 per month, which is the same amount inespective of the subscriber's age. Because individuals are domanding quality care at reasonable rates, VIP MD must contain its costs to remain competitive A major competitor National Physicians, entored the North Carolina market early in the current year with a monthly premium of $452 VIP-MD wants to maintain its current market penetration and hopes to increase the number of its enrollees in the current year The latest data on the number of enrollees and the associated costs follow Age Enrollment in Current Year Projected Enrollment Next Year Average Monthly Cost in Current Year 1-4 45,688 48 977 $11,147,872 5-14 82,456 84 663 10,050,632 15-19 95,873 95 887 8,436,624 20-24 36,246 67 882 9,539,424 25-34 133 496 132 554 26,432 208 35 44 116,876 175,440 38,882, 108 45-54 85,496 90,889 22,741936 55-64 99,624 101.923 28,691 712 65-74 116 288 161,559 49 518,144 75 84 67,895 72,465 33,432780 23.499 85 years and older 26,849 24,286 475 903.437 $263.169,095 1,059,094 Window Required: Calculate the target cost required for VIP MD to maintain its current market share and profit per enrollee in the current year BIT.NL/MY

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