Medicare Advantage Plan Administrative Cost Growth Decelerated in 2019

PHILADELPHIA–(BUSINESS WIRE)–In 2019, Medicare Advantage plans reported median administrative cost increases of 5.2%, lower than the 6.4% pace in 2018. The 2019 trend in Account and Membership Administration was higher, 9.3% versus 7.0%, though it was lower when Behavioral Health and Pharmacy administration is excluded. This cluster of activities is the largest for health plans and its increase was higher than in the prior three years. These comparisons eliminate the effect of product mix dif