Families First has been asked to submit a premium bid to ABC company, a large ma
ID: 2741533 • Letter: F
Question
Families First has been asked to submit a premium bid to ABC company, a large manufacturer.
The premium bid includes the primary care for all the ABC employees.
ABC has provided information about the age and gender of its employees & Families First has identified average primary care utilization rates from its own databases.
The information shown below:
Each doctor can handle about 3,000 patient visits per year, for which he/she is paid $180,000
1. What primary care rate (PMPM) will Families First purpose to ABC Company?
2. Please show calculations used to derive answer.
ABC Company Average primary care Number of Number of visits per year Ages males females Males Females 20-29 285 325 2.10 3.18 30-39 96 100 2.60 3.52 40-49 53 57 3.28 3.93 50-59 36 36 4.14 4.43 60+ 7 5 4.98 5.04Explanation / Answer
From the given data,
Total number of visits of males is calculated as
285*2.1 + 96*2.6 + 53*3.28 + 36*4.14 + 7*4.98 = 1205.84
Total number of visits of females is calculated as
325*3.18 + 100*3.52 + 57*3.93 + 36*4.43 + 5*5.04 = 1794.19
Total number of visits in a year = 1205.84+1794.19 = 3000 (rounded off)
Given, each doctor can handle 3000 patient visits per year and is paid 180,000
So Families First premium bid would be $180,000
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