How To Calculate PMPM
- 1). Decide on the year for which you want to calculate the PMPM. Determine the number of people covered under the plan for this year.
- 2). Multiply the number of people covered by 12. Determine the total cost of health care benefits for all of the members under the plan for this year.
- 3). Divide the number calculated in step two by the number calculated in step one. This is the PMPM for the year.
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