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PMPM Rate for Primary Care Physicians

You are trying to establish a PMPM rate for Primary Care Physicians. Actuarial estimates project 2,500 visits per 1,000 members per year. You have contracted with a Primary Care Medical group at $45.00 per visit with a $5.00 copayment that you will receive. What PMPM rate should you set?

A. $11.25

B. $9.38

C. $10.40

D. $8.33

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Solution Preview

The correct answer is D.

Here's why:

1,000 members x 12 months = 12,000

2,500 ...

Solution Summary

This solution provides the correct answer with explanation to the PMPM Rate for Primary Care Physicians question presented. Includes 1 reference.