Originally Posted by meliche
So I have started working on the module exercise and am stumped with modelling the prescription drug portion for the preferred plan.
I have basically done something similar as for the hospital portion of task 2:
(average claim - 10)x number of events x number of claimants. The sum of this would be the total cost to the employer and then over 1,000,000 (the number of claimants), would result in the cost per employee. What am I missing here? Any help is appreciated!
And also note that I am doing this for an employee where medicare has not kicked in yet.
For an employee, the plan cost is total cost - (10 x number of events), then adjust by the claimaints over 1 million.
Medicare and supplemental are more complex.