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Midwest Healthcare is a managed care plan submitting a premium bid to Vandelay Industries, a large manufacturer in its service area. The premium bid includes

Midwest Healthcare is a managed care plan submitting a premium bid to Vandelay Industries, a large manufacturer in its service area. The premium bid includes primary care for all Vandelay employees. Vandelay has provided information about the age and gender of its employees, and Midwest Healthcare has identified average primary care utilization rates from its databases. This information is shown below: Vandelay Industries Average primary care Age band Number of Males Number of Females Visits per year - Males Visits per year - Females 20-29 310 330 2.25 3.35 30-39 101 140 2.75 3.65 40-49 56 60 3.30 4.10 50-59 46 36 4.25 4.75 60+ 9 12 5.10 5.20 Primary care physicians can each handle about 2,750 patient visits per year, for which they are paid $200,000. What primary care rate (PMPM) will Midwest Healthcare propose to Vandelay Industries

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