Blue Cross Blue Shield Plan Operational Administrative Cost Trends

Sherlock Company recently released the 2015 Blue Cross Blue Shield Plan edition of the Sherlock Expense Evaluation Report. Here are some key findings from the analysis:

·         Operational administrative expenses for Blue Cross Blue Shield Plans increased 1.1% per member in 2014.

·         Account and Membership Administration costs increased by 3%, the lowest rate increase since 2011.

·         The median total costs before Miscellaneous Business Taxes was $33.37 per member per month.

·         Miscellaneous Business Taxes increased by 369.1% because of Affordable Care Act taxes and fees.

·         When ACA taxes and fees are included, the total administrative costs per member increased by 18.4%.

·         The growth in Sales and Marketing and Medical and Provider Management declined to 2.0% and 1.6%.

Source: Sherlock Company, July 6, 2015