What We're Doing - Keep Administrative Costs Low

Each and every employee is committed to keeping our administrative costs as low as possible. Currently, less than 10 cents of every premium dollar goes to the costs of processing and paying claims, providing customer service and other business activities.

In 2003, our entire cost-containment program saved our members more than $848 million. That means for every $1 we have in administrative expenses, we returned about $8.33 in cost savings to you.

Contracting with providers is just one of the many cost containment activities we do for you. Another example, if we suspect that another company should be financially responsible for a claim, we coordinate payment with them. Also, injuries received on the job are usually covered by workers’ compensation, or auto insurance covers injuries resulting from an accident. We also pre-certify hospital admissions to make sure the stay is medically necessary. In addition, we watch for overuse of services. For some patients with chronic diseases, nurse case managers help coordinate care to assure the member receives the most effective use of treatment and benefits.

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