Question: 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

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:


Families First is a managed care plan that has been


Each primary care physician can handle about 3,000 patient visits per year, for which he or she is paid $180,000. What primary care rate (PMPM) will Families First propose to ABCCompany?

ABC Company Number of Average Primary Care Visits per Year Age Band Males 20-29 30-39 40-49 50-59 60+ 285 96 53 36 Number of Females 325 100 57 36 ales Females 2.10 2.60 3.28 4.14 4.98 3.18 3.52 3.93 4.43

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