Blue Cross Blue Shield Plans’ Administrative Expense in 2025
Low Expense Growth, Lowest Relative to Premiums in 20 Years
Blue Cross Blue Shield Plans’ per member administrative costs grew by 0.3% in 2025 versus 5.6% in 2024. This was the lowest since the effects of Covid adaptation in 2021. Growth in costs for the cluster of Account and Membership Administration, at 1.1%, was the slowest growth since 2016. Median PMPM costs for all reporting Plans were $51.50 PMPM versus $51.90 PMPM last year.
At 8.1% of premium equivalents, health plan administrative costs are the lowest in 20 years.
Administrative costs were affected by a slight decline in staffing ratios, an increase in compensation likely affected by a shift towards more expensive employees and a decline in non-labor costs.
