MCOL June 13, 2019
Sherlock Company in the June issue of their Plan Management Navigator examines administrative cost trends for Blue Cross Blue Shield Plans, analyzing year end 2018 vs 2017 data. They found that costs “increased by 5.5% per member, up from an increase of 5.1% for 2017. Reweighting to eliminate the effects of product mix differences between the years, per member costs increased by 6.7% as compared with 5.9% in 2017. ASO/ASC increased as commercial insured membership declined. Medicare Advantage continued to grow rapidly.”
Their key findings included:
- Most clusters of expenses grew at rates less than last year.
- Uniquely, Account and Membership Administration’s growth rate increased.
- Growth in Information Systems was the single most important reason for administrative expense increase in 2018. ...