American Healthcare is a managed care plan submitting a premium bid to United Industries, a large manufacturer in its service area. The premium bid includes the primary care for all of the United employees. United has provided information about the age and gender of its employees, and American Healthcare has identified average primary care utilization rates from its own databases. This information is shown below:
| United Industries | Average primary care | |||
| Number of | Number of | visits per year | ||
| Age band | males | females | Males | Females |
| 20-29 | 310 | 340 | 2.25 | 3.35 |
| 30-39 | 101 | 130 | 2.75 | 3.65 |
| 40-49 | 66 | 50 | 3.30 | 4.10 |
| 50-59 | 46 | 36 | 4.25 | 4.75 |
| 60+ | 9 | 12 | 5.10 | 5.20 |
Primary care physicians can each handle about 3,500 patient visits per year, for which they are paid $210,000. What primary care rate (PMPM) will American Healthcare propose to United Industries?
Use Excel in presenting the answers for your work. Be sure to show calculations (using cell formulas is suggested).
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