Blue Cross Blue Shield Plans’ Administrative Expenses Decelerate Again in 2024

PHILADELPHIA--(BUSINESS WIRE)--Holding product mix constant, Blue Cross Blue Shield Plans’ per member costs grew by 4.0% in 2024 compared with 5.6% in 2023 and 8.7% in 2022. The growth in Medicare Advantage and decline in Medicaid led to as-reported growth of 6.6%, compared with 5.9% in 2023. Median PMPM costs for all reporting Plans were $51.90 PMPM.

Continuously reporting plans posted accelerated growth in Customer Services and Medical and Provider Management with declines in Information Systems’ growth. Staffing ratios, compensation and outsourcing increased.

The results are summarized in Plan Management Navigator, posted at sherlockco.com/navigator. The Navigator draws from the 2025 Blue Cross Blue Shield Plan edition of the Sherlock Benchmarks. It analyzes and details results from in-depth surveys of 14 Blue Plans serving 43.3 million members, 61% of members of Blue Cross Blue Shield Plans excluding publicly-traded companies.

We will discuss the results via a free web conference on Wednesday, June 18^th, from 2:00 PM to 3:00 PM Eastern Daylight Time. Douglas Sherlock will offer a brief presentation, followed by questions and answers. To participate in the web conference, please register at sherlockco.com/webinar. Once registered, dial-in information and a link to connect will be provided in a confirmation email.

The Sherlock Benchmarks are the health plan industry’s “gold standard” metrics of administrative activities, costs and operational drivers. They reflect 28 consecutive years and more than 1,000 health plan years of experience. Health plans use the Sherlock Benchmarks to determine whether their administrative costs are optimal and to prioritize improvements among numerous specific activities. Other applications include informing strategic corporate planning and cost-benefit analyses.

This year, collectively, Benchmark participants serve 58 million Americans in Blue and other universes. Other universes include Independent/Provider-Sponsored plans, Medicare plans and Medicaid plans. Health plan users of the Sherlock Benchmarks serve over 170 million members since June 2022.

Sherlock Company (www.sherlockco.com), based in Gwynedd Valley, 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.