Is there price discrimination in monopolistic competition.Explain. (i) Describe three models used in care management program planning. (ii) Identify drawbacks of each model. (b) (2

Is there price discrimination in monopolistic competition.Explain. (i)
Describe three models used in care management program planning.
(ii)
Identify drawbacks of each model.
(b)
(2 points) Describe steps for conducting a focused review of literature about
successful care management programs. (7 points) You are given the following information representing the utilization of a
population in a disease management (DM) program:
Year
Units per 1000
Baseline
100
Intervention
97
Unit cost for the baseline year is $7,000.
Utilization trend from the baseline year to the intervention year is 3%.
Unit cost trend from the baseline year to the intervention year is 8%.
(a) (2 points) Calculate the per member per month (PMPM) effect of the DM
program. Show your work.
You are given the following information on a different population.
Baseline Cost
Risk Cohort
Baseline
Prevalence
per member per
year (PMPY)
Low Risk
80%
$600
gh Risk
20%
$6.000
33% of the high-risk members remain as high-risk members in the next (intervention)
year, while the rest of the high-risk members transition into low-risk status.
85% of the low-risk members remain as low-risk members into the next (intervention)
year, while the rest of the low-risk members transition into high-risk status.
(b) (2 points) Calculate the PMPY cost trend. Show your work.
You are given the following information:
Baseline Cost PMPM
$100
Trend (unadjusted)
6%
Baseline Risk Score
1.01
Trend (adjusted for change in population risk)
4%
(c)
(I point) Calculate the risk score trend. Show your work. (d) (2 points) Critique the following statements. Justify your responses.
(i)
Reduction in units per 1,000 s convince DM program purchasers of
the efficiency of the program, and satisfies the needs of most clients who
need savings.
(ii)
Equivalence requires stability in the underlying number of members
between periods, and is a basic necessity for evaluating a disease
management program.
(iii)
If there is a change not due to the DM intervention in the chronic
population, one can use risk adjustment to separate the effect of the
intervention from other chronic population changes.
(iv)
The trend used to adjust from the baseline year to the intervention year for
a chronic population should be net of the effect of any population changes.