Question: Using the example of Table 6-2, assume that the average cost has jumped from $100-$105. All other factors in the example will remain the same

Using the example of Table 6-2, assume that the average cost has jumped from $100-$105. All other factors in the example will remain the same what will be the new required price? Modifying the example in the above question, assume that all fixed payers will raise their payment levels 5%: Medicare - $99.75; Medicaid $78.75 and Managed care plan 1 $115.50. If costs have still increased 5% to $105, what rate would now be required?

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