1)Determine Elite Health's (an HMO) per-member-per-month capitation cost amount if the expected encounters per year = 5 and the cost per encounter = $80 (1 point).

Total Cost Per Encounter Is =$80

Total Encounter Per Year =5

Total Encounter Cost Is = $805= $400

Per member per month capitalization cost is $40012 month = $33.334 for all 5 members for each member $33.3345 = $6.667 = $6.67

Elite Health's (an HMO) per-member-per-month capitation cost is $6.67.

2)Would primary care physicians in at Elite Health accept a capitation rate of $28.50 PMPM? Explain (1 point).