Healthcare and pharma
PMPM (per member per month)
A cost or revenue figure divided by the number of members and months, used by health plans.
Last reviewedWhat does PMPM (per member per month) mean?
PMPM stands for per member per month. Health insurers and providers express premiums, costs and payments this way so that plans of different sizes can be compared. PMPM = total amount for the period / (average members x months). Example: a plan with 50,000 members that spends 180 million on claims in a year has claims of 180 million / (50,000 x 12) = 300 PMPM. If premiums are 350 PMPM, the medical loss ratio is about 86 percent.
Where does it come up in case interview prep?
Related terms
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