According to Sherlock Company, which provides financial analysis for insurers, independent and provider-sponsored plan per member costs grew by 8.7% in 2023, up from 7.5% in 2022.
Provider-sponsored and independent plans saw higher growth rates than other types of plans Sherlock Company analyzed. Administrative costs for Blue Cross Blue Shield plans studied by Sherlock Company grew by 5.6% in 2023.
Account and member service administration was the fastest growing expense area for independent and provider sponsored plans, growing by 11% in 2023. Sales and marketing expenses rose by 10.5%. Information systems had lower growth rates than the overall, but was the most important source of growth, according to Sherlock Company analysts.
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