Blue Cross Blue Shield Plans Expense Growth Declined in 2020

Expense growth in 2020 for Blue Cross Blue Shield Plans was sharply lower in 2020 compared with 2019. Total costs per member per month (PMPM) growth declined to a median of 5.2% from 6.6% in the prior year, the slowest growth since 2016. The decline in Account and Membership Administration (representing over 45% of all expenses) was even more dramatic, falling to growth of 2.7% from 6.0% in 2019.

These results are excerpted from the Blue Cross Blue Shield edition of the 2021 Sherlock Benchmarks The Sherlock Benchmarks for Blue Cross Blue Shield Plans provide a window to health plan adaptation to this event and to how the Plans built for the future on this foundation. This 23rd analysis of Blue Plans is based on a peer group of fourteen Blue Cross Blue Shield Plans who collectively serve approximately 41.5 million people, not including Host, specialty, and other products. We believe this universe to be quite robust. Participants in this year’s study serve about 61% of all Blue comprehensive membership, excluding those served by publicly-traded firms.

Collectively in 2020, the health plan operations of these Plans earned annual premiums plus fees of nearly $130 billion and nearly $230 billion in premium equivalents. The median Plan participating in the Sherlock Benchmarks this year served 2.1 million people. The Plans were geographically disbursed, serving 22 states. Thirteen of this year’s fourteen participants also participated last year.

Event Date: Thursday, June 24, 2021

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Category(s): Health Plans

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