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Setting Up Commercial Margin Feature

Derya Yurt
  • Updated

Overview

Commercial Margin calculation is a feature of Plan Design. If the basic inputs are provided in the Commercial Margin settings tab, then Plan Design automatically calculates commercial margin of the new plans. You are looking for instructions on how to set up Commercial Margin.

 

Solution

In order to manage the provider settings, one needs to use the Plan/Config user for the provider.

  1. Log in to the Plan UI with the Plan User.
  2. Select the Settings icon from the left, and go to the Commercial Margin section.
  3. Decide for which plans the Plan Design to calculate the commercial margin: monthly, weekly and/or daily plans. 
  4. Decide the lowest commercial margin ratio for a new plan. If the commercial margin level of a new plan is expected to be below this level, Plan Design notifies you with a warning.Screen_Shot_2022-11-18_at_17.54.32.png
  5. Enter the cost values. Note: Leave them as zero if they are not included in your provider’s cost structure. You can check the tooltips beside the cost items if you need more information about them.Screen_Shot_2022-11-18_at_18.03.22.png
  6. Enter the reference points. When you enter the usage assumptions for different levels of allowance amounts of different allowance types, Plan Design automatically matches your new plan feature candidates with these references and uses them to calculate commercial margin.Screen_Shot_2022-11-18_at_18.01.14.png
  7. Save the Settings using the button on the top right.

Testing

You can instantly see the results and modify the plan allowances or prices to reach the desirable commercial margin level. If the plan doesn’t display the commercial margin, then one or more of the allowances within the plan doesn’t have a matching reference point. Go to the Commercial Margin settings and add the needed reference points.