How do you find how the PMPM (per member per month) is figured out? I have tried a few different ways but it isn't correct. Below is one of the questions I have and I cannot get it right.

Assume that each of the 1,000 members of a managed care plan is expected to make four primary care visits per year. In addition, each primary care physician can handle 5,000 visits per year and requires $200,000 in total compensation. What is the PMPM (per member per month) cost for primary care services?

• a. $13.33
• b. $15.00
• c. $16.66
• d. $20.00
• e. $23.33