Blue Cross Blue Shield Plans saw their administrative costs grow faster in 2018 than the year prior, according to a report from healthcare solutions provider Sherlock Co.
For its analysis, Sherlock Co. examined surveys of 14 Blue licensees serving 37 million members. Plans surveyed comprise 52 percent of BCBS plan members not served by publicly traded companies.
In 2018, administrative costs grew by 5.5 percent per member for the health plans. That's compared to an increase of 5.1 percent for 2017. Growth in information systems was "the single most important reason for administrative expense increase in 2018," according to the report.
BCBS plans also saw their staffing ratios increase by 6.8 percent, especially in the information systems business. About 19 full-time employees serve every 10,000 members in BCBS' commercial products, according to the report.
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