Assume that the national average cost per covered employee for PPO rental networks is $3 per member per month (PMPM) and that the average monthly healthcare premium PMPM is $300. This information indicates that, if the number of health plan members is 10,000, then the annual network rental cost to the health plan would be:
A) $30,000
B) $360,000
C) $9,000,000
D) $12,000,000

Question

Quizplus · Accepted Answer

Since the national average cost per covered employee for PPO rental networks is $3 PMPM, then the total cost per member for one year would be $3 x 12 = $36. 
If the number of health plan members is 10,000, then the annual network rental cost would be $36 x 10,000 = $360,000. Therefore, the correct answer is B.

Assume That the National Average Cost Per Covered Employee for PPO