Midwest Healthcare is a managed care plan submitting a premium bid to Vandelay Industries, a...
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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 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:
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?
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
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