Reviewing its employee health-care program

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Reference no: EM13322076

Prydain Pharmaceuticals is reviewing its employee health-care program. Currently, the company pays a fixed fee of $300 per month for each employee, regardless of the number or dollar amount of medical claims filed. Another health-care provider, ABC health, has offered to charge the company $100 per month per employee and $30 per claim filed.

a) Base on this information, over what range of claims filed per month per employee should pyrdain stay with its current program and for what range should it select ABC Health's offer? Please show calcualtion so that I can understand how you came up with the answer.

Reference no: EM13322076

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