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Assume That the National Average Cost Per Covered Employee for PPO

Question 190

Multiple Choice

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

Correct Answer:

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