Growth in Administrative Costs Slightly Ticks Up for Medicare-Focused Plans in 2020
Between 2019 and 2020, administrative cost growth for Medicare-focused plans accelerated from 5.2% to 5.6%, shown in Figure 1. Account and Membership Administration expenses lagged total cost growth, increasing by 1.8% and dropping sharply from last year’s rate of 9.3%. Thirteen plans participated in this year’s Medicare benchmarking study, collectively serving 12.2 million people.
This analysis is based on the eighteenth annual edition of our performance benchmarks for Medicare-focused health plans. The Sherlock Benchmarks (Sherlock Expense Evaluation Report or SEER) represent the cumulative experience of 929 health plan years. This 18th analysis of Medicare plans is based on a peer group of 13 plans who collectively serve 12.2 million people. Of the thirteen plans, seven were repeat participants from a year ago. The average plan participating in the Medicare Sherlock Benchmarks this year served 1.2 million people and the median membership was 941,000. The geographic reach extended from coast to coast.
Event Date: Wednesday, September 15, 2021Speaker
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