Navigation Links
Independent / Provider-Sponsored Administrative Cost Trends Increase in 2008 as Ratios Decrease on Product Mix Change

PHILADELPHIA, July 7 /PRNewswire/ -- Per member administrative costs grew by 11.5% in 2008, compared with 4.9% in 2007. Adjusting for the shift in product mix towards Medicare Advantage, administrative expense growth increased by 6.2% in 2008 from 3.1% in 2007. By contrast, administrative expenses were 8.3% of premium equivalents in 2008 compared with 9.4% in 2007. Plans reported total administrative expenses of $30.37 per member per month. All cited values exclude investment and non-operating income and expense, income taxes and miscellaneous business taxes.

These results are excerpted from the Independent / Provider-Sponsored (IPS) edition of the Sherlock Expense Evaluation Report (SEER), a benchmarking study comprising the results of 16 plans serving 5.7 million people surveyed by Sherlock Company. Approximately 77% of last year's IPS participants did so again in 2009 and 75% have at participated for at least three years. For public policy and competitive reasons, administrative cost management is a high priority for health plans.

Sherlock benchmarks include thousands of operational and financial performance metrics. Besides Independent / Provider-Sponsored plans, other universes include Blue plans, Medicare plans, Medicaid plans and Larger plans. Collectively the 50 plans serve more than 39 million insured Americans.

The growth in administrative costs ranged from a high of 22.7% for Medical and Provider Managements to a low of 6.0% for Account and Membership Administration. Douglas B. Sherlock, CFA, Sherlock Company's president, noted, "The growth of Medicare dramatically affected comparisons."

Additional information will be published on July 8 in Plan Management Navigator, available upon request or see our website, The complete analysis is available in SEER. Please call for additional information.

We will host a web conference on Thursday, July 9 from 2:00 PM to 3:00 PM East Coast Time to discuss the summary results. Doug Sherlock will offer a brief presentation, followed by questions and answers. To participate in the web conference, please register at:

Once registered, dial-in information and a link to connect to the web will be provided in a confirmation email.

Sherlock Company (, based in Gwynedd, Pennsylvania, provides informed solutions for health plan financial management. Since its founding in 1987, Sherlock Company has been known for its impartiality and technical competence in service to its clients.

    Contact:  Douglas B. Sherlock, CFA

SOURCE Sherlock Company
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Independent Laboratory Testing Shows BioNeutrals Hospital Grade Ygiene(TM) Eliminates Aspergillus Niger (Black Mold) Spores
2. Independent Health to Begin Offering Its Members Vitamins, Supplements and Natural Products
3. New Technology Assists Independent Seniors
4. Helping Dad Stay Independent: The Best Fathers Day Gift for an Aging Parent - A Checklist from Dr. Dan Tobin, Founder and CEO of Care Support of America
5. Three Independent Proxy Advisory Firms Support Stockholder Nominees in Amylin Proxy Fight
6. Support Bristols Highly Qualified Independent Nominees for Advocat Board
7. Gentiva(R) Health Services Receives Nasdaq Notification Regarding Independent Director Requirement
8. Important Data Presented on Independent Predictors of Mortality in Patients With Idiopathic Pulmonary Fibrosis
9. New Organization Formed To Save Independent Medical Equipment Suppliers
10. Super Lice Repelled by All-Natural Products First Ever Independent Study Shows
11. Quigley Corporation Receives Support from Leading Independent Proxy Advisory Firms; RiskMetrics and Glass Lewis Reject Dissident Stockholder Ted Karkus, Citing Failure to Provide Detailed Business Plan
Post Your Comments:
(Date:11/25/2015)... ... 2015 , ... The holiday season is jam-packed with family ... of attendees is of the utmost importance. Whether you are cooking at home ... recipes a try this holiday season. , Turkey Croquettes ,     Ingredients: ...
(Date:11/25/2015)... ... 2015 , ... Ministers, senior government and UN agencies, representatives ... of Excellence, and public R&D institutions, civil societies and other partners gathered today ... African Network for Drugs and Diagnostics Innovation, ANDI, Stakeholders Meeting. The three- day ...
(Date:11/25/2015)... ... 25, 2015 , ... Dental professionals who would like to become more proficient ... attend Dr. Mark Iacobelli’s Advanced Implant Mentoring (AIM) CE course. Courses will be held ... the co-founders of Advanced Implant Mentoring (AIM), Dr. Iacobelli and Dr. D’Orazio are proud ...
(Date:11/25/2015)... ... November 25, 2015 , ... Smiles by Stevens ... Bruxism, and moderate facial wrinkling. While many patients are aware of the benefits of ... success Botox® delivers to those suffering with discomfort, soreness, and pain as a result ...
(Date:11/25/2015)... , ... November 25, 2015 , ... “While riding the ... inventor, from Bronx, N.Y. “I thought there had to be a convenient and comfortable ... PROTECTOR. , The PROTECTOR enables disabled individuals to safely travel during cold or inclement ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... 3D bioprinting market is expected ... new report by Grand View Research Inc. Rising prevalence of ... kidney transplantation is expected to boost the market growth, as ... transplantation. --> 3D bioprinting market is expected ... new report by Grand View Research Inc. Rising prevalence of ...
(Date:11/26/2015)... , November 26, 2015 ... the addition of the  "2016 Future ... Global Cell Surface Testing Market: Supplier ... to their offering.  --> ... of the  "2016 Future Horizons and ...
(Date:11/26/2015)... Research and Markets ( ) has ... Market by Type (Dressings, Therapy Devices, Active Wound Care), ... Facility), and Geography - Global Forecast to 2020" ... --> The purpose of this report ... the global advanced wound care market. It involves deep ...
Breaking Medicine Technology: