Independent/Provider-Sponsored Plans’ Administrative Expenses Accelerated in 2023
17 Julio 2024 - 9:05AM
Business Wire
In 2023, Independent/Provider-Sponsored plan per member costs
grew by 8.7% compared to 7.5% 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 $45.70.
The results are published in Plan Management Navigator posted at
sherlockco.com/navigator. The Navigator excerpts from the 2024
Independent/Provider-Sponsored Plan edition of the Sherlock
Benchmarks. It summarizes in-depth surveys of 12 plans serving 9.9
million members.
Account and Membership Administration expenses accelerated to
11.0% from 7.4% in 2022. Customer Services and Information Systems
grew most rapidly and were most important, respectfully. Sales and
Marketing nearly matched its growth and also accelerated from 2022.
Plan Staffing Ratios decreased.
Medicare Advantage and Commercial Insured products outstripped
others, amplifying as-reported expense growth.
We will discuss the results via a free web conference on
Thursday, July 18th, 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 Independent/Provider-Sponsored plans and other
universes. Other universes include Blue Cross Blue Shield, 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/20240717560673/en/
Douglas B. Sherlock, CFA 215-628-2289
sherlock@sherlockco.com