NU Online News Service, May 21, 2003, 12:58 p.m. EDT – Sales and marketing costs at large U.S. managed care companies surveyed by Cap Gemini Ernst & Young U.S. L.L.C. average $5.11 per member per month.
Carriers in the 25th percentile pay $4.51 per member per month for sales and marketing, and carriers in the 75th percentile pay $5.35, the consulting firm says.
The variation looks modest, but even small differences can have a big effect on carrier productivity, because a typical carrier earns less than $5 in operating profits per member per month, according to Cap Gemini figures.
The sales cost and profit figures come from a report on Cap Gemini’s 2002 Managed Care Benchmarking Study. A team based in Cap Gemini’s Vienna, Va., office asked large and midsize carriers about 900 performance measures.
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In addition to sales costs, questions focused on areas such as administrative costs, claim-processing costs, use of disease management programs, success of pharmacy management programs, and use of Web-based and telephone-based customer service tools.
The researchers found, for example, that carriers that spend more on pharmacy management seem to have lower pharmacy claims costs.