Administrative costs for Blue Cross Blue Shield plans rose in 2022, according to an analysis from Sherlock Company.
Costs increased by 7.2 percent in 2022, compared to a 0.4 percent decline in 2021, according to the report, published June 19.
Here are five findings to note from the report:
- Per member per month administrative costs were $45.36 across the 17 plans surveyed for the report, an 8.9 percent increase from 2021.
- Accounts and membership expenses rose 8.3 percent, up from 1.7 percent in 2021. This is the biggest jump in costs since 2015, according to Sherlock Company.
- Staffing ratios for plans increased slightly, up 1.9 percent from 2021. Plans had an average of 20.6 full-time employees per 10,000 members.
- Median compensation increased by 5.9 percent for Blues' plan employees.
- Medicare Advantage plans had the highest median per member per month administrative costs at $150.25.
A spokesperson for the Blue Cross Blue Shield Association told Becker's the association did not have a comment on the report's findings.
See the full report here.