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Question 108/129
The Fiesta Health Plan prices its products in such a way that the rates for its products are reasonable, adequate, equitable, and competitive. Fiesta is using blended rating to calculate a premium rate for the Murdock Company, a large employer. Fiesta has assigned a credibility factor to Murdock. Fiesta has also determined that Murdock's manual rate is $200 PMPM and that Murdock's experience rate is $180 PMPM.
Fiesta would correctly calculate that its blended rate PMPM for Murdock should be Fiesta's retention charge plus
Fiesta would correctly calculate that its blended rate PMPM for Murdock should be Fiesta's retention charge plus
Correct Answer: B
Explanation/Reference:
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- Question List (129q)
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