NU Online News Service, Aug. 22, 2003, 1:13 p.m. EDT – Publicly traded U.S. health insurers spend about 12% of their premium revenue for insured commercial health plans on administration, according to the Sherlock Company, Gwynedd, Pa.
Administration charges average $21.92 per insured commercial member per month, the company estimates.
Administrative expenses amount to 7.16% of premium revenue for Medicare managed care plans and 12.21% for insured indemnity and preferred provider plans, Sherlock adds.
The results come from a report the company has prepared on health insurance company administrative expenses.
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