Blue Cross Blue Shield Plans’ Administrative Expenses Decelerated in 2023
18 Junio 2024 - 10:40AM
Business Wire
In 2023, Blue Cross Blue Shield Plans’ per member costs grew by
5.6% compared 8.7% in 2022. These comparisons hold constant the set
of reporting Plans and are reweighted to eliminate the effect of
product mix differences. Median PMPM costs for all reporting Plans
were $46.59.
The results are published in Plan Management Navigator posted at
sherlockco.com/navigator. The Navigator excerpts from the 2024 Blue
Cross Blue Shield Plan edition of the Sherlock Benchmarks. It
summarizes in-depth surveys of 14 Blue Plans serving 41.3 million
members, 59% of members of Blue Cross Blue Shield Plans excluding
publicly-traded companies.
Account and Membership Administration expenses decelerated to
5.2% from 8.8% in 2022. However, growth in Information Systems was
the most important function cost increase. Sales and Marketing was
the fastest growing cluster of functions, and accelerated from
2022. Plan Staffing Ratios increased as Customer Services costs
were the fastest growing function.
Medicare Advantage was the fastest growing product for
continuously participating Plans, amplifying as-reported expense
growth.
We will discuss the results via a free web conference on
Thursday, June 20th, from 2:00 PM to 3:00 PM Eastern Daylight Time.
Douglas Sherlock will offer a brief presentation, followed by
questions and answers. To participate in the web conference, please
register at sherlockco.com/webinar. Once registered, dial-in
information and a link to connect will be provided in a
confirmation email.
The Sherlock Benchmarks are the health plan industry’s “gold
standard” metrics of administrative activities, costs and
operational drivers. They reflect 27 consecutive years and more
than 1,000 health plan years of experience. Health plans use the
Sherlock Benchmarks to determine whether their administrative costs
are optimal and to prioritize improvements among numerous specific
activities. Other applications include informing strategic
corporate planning and cost-benefit analyses.
This year, collectively, Benchmark participants serve 52 million
Americans in Blue and other universes. Other universes include
Independent/Provider-Sponsored plans, Medicare plans and Medicaid
plans. Health plan users of the Sherlock Benchmarks serve over 200
million members since June 2021.
Sherlock Company (www.sherlockco.com), based in Gwynedd Valley,
Pennsylvania, provides informed solutions for health plan financial
management. Since its founding in 1987, Sherlock Company has been
known for its impartiality and technical competence in service to
its clients.
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version on businesswire.com: https://www.businesswire.com/news/home/20240618570339/en/
Douglas B. Sherlock, CFA 215-628-2289
sherlock@sherlockco.com