Question

Please check my answer thanks :)

True or False

If an enrollee uses more services then first thought they would per the PPOM calculation then the plan would show a loss for that period

I said True

Answer 1

true

Answer 2

According to my Googling of the abbreviation PPOM, it is a specific Preferred Provided Organization health plan. Whether they lose money or not depends upon how much they charge each employee or his/her insurer to belong, as well as how much services they use (less copayaments). They should have priced in a certain expected profit to start with.

So my answer would be "not necessarily"