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: ABC Company Average primary care
Number of Number of visits per year
Age Band males females Males Females
20-29 285 325 2.10 3.18
30-39 96 100 2.60 3.52
40-49 53 57 3.28 3.93
50-59 36 36 4.14 4.43
60+ 7 5 4.98 5.04 Each primary care physician can handle about 3000 patient visits per year for which he or she is paid
$180000. What primary care rate (PMPM) will Families First propose to ABC Company?