Before Incurring the Expense of Assembling a New PPO Network

question 158

Multiple Choice

Before incurring the expense of assembling a new PPO network, the Protect Health Plan conducted a cost analysis in order to determine the cost-effectiveness of renting an existing PPO network instead. In calculating the overall cost of renting the network, Protect assumed a premium of $2.52 per member per month (PMPM) and estimated the total number of members to be 9,000. This information indicates that Protect would calculate its annual network rental cost to be

• A) $42,857
• B) $56,700
• C) $272,160
• D) $680,400

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Definitions:

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Survey

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