Administrative expenses for Medicare plans grew by 0.9 percent per member in 2010, following a decrease of 4.1 percent in 2009, according to a MarketWatch report.
Marketing was chiefly responsible for the modest increase in expenses, according to the report. Controlling for changes in product mix, per member marketing costs decreased by 5.2 percent versus 10.4 percent in the prior year. Administration of Medicare Advantage products comprised 8.1 percent of premiums in 2010.
Medicare-focused plans are under pressure to reduce administrative costs. Under healthcare reform, payments are expected to decline from earlier payment methodologies, and Medicare plans will be subject to the "minimum medical loss ratio" regulation starting in 2014.
Related Articles on Coding, Billing and Collections:
Report: Less Than 10% of Providers Are Halfway Completed in ICD-10 Transition
CMS Releases Four ICD-10 Implementation Handbooks to Ease Transition
Vermont's Universal Healthcare Could Cost $9.5B a Year by 2020
Marketing was chiefly responsible for the modest increase in expenses, according to the report. Controlling for changes in product mix, per member marketing costs decreased by 5.2 percent versus 10.4 percent in the prior year. Administration of Medicare Advantage products comprised 8.1 percent of premiums in 2010.
Medicare-focused plans are under pressure to reduce administrative costs. Under healthcare reform, payments are expected to decline from earlier payment methodologies, and Medicare plans will be subject to the "minimum medical loss ratio" regulation starting in 2014.
Related Articles on Coding, Billing and Collections:
Report: Less Than 10% of Providers Are Halfway Completed in ICD-10 Transition
CMS Releases Four ICD-10 Implementation Handbooks to Ease Transition
Vermont's Universal Healthcare Could Cost $9.5B a Year by 2020