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Life Health > Health Insurance

Large Plan Admin Costs Are 11%: Sherlock

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NU Online News Service, April 7, 2004, 11:50 a.m. EST – Administrative expenses for larger health care insurance commercial products were 11.29% of premiums, or $23.28 per member per month in 2002, a new report from the Sherlock Company, Philadelphia, says.

The Sherlock Expense Evaluation Report, Larger Plans Edition, shows that these plans’ administrative expenses were much larger than found in a typical Blue Cross Blue Shield or public health plan.

Administrative expenses ranged from 7.21% of premium for Medicare + Choice plans to 11.92% for commercial point-of-service plans, Sherlock reports.


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