Non-Medical Expenditures of Health Insurance Companies, 2020-2024

May 8, 2025

• Accounting for over 44% of health insurance companies’ non-medical expenses in 2024, expenditures on “Salaries & Wages” grew by over $2.8 billion (B) in 2024, an increase of 5.1% compared to 2023. Insurers spent $44.1B on this category in 2020, compared to $57.9B in 2024 (a 31.1% increase).
   
• “Outsourced Services” expenses, including electronic data processing (EDP), claims, and other services, increased by nearly $4.5B since 2020, a 27.1% growth. The line item’s largest annual increase occurred from 2022 to 2023, where it grew by nearly $2.2B, or 11.4%.
   
• “Commissions” expenditures grew by 63.7% (almost $7.3B) since 2020, with the largest increase being in the 2022 filings with nearly $2.1B in growth (a 15.7% increase). The category has grown by over 10% each year since 2020.
   
• “Other Expenses” includes line-items such as Legal Fees & Expenses (up $863.4 million, or 116%, from 2023), Group Service & Administration Fees (up $223.7 million, or 5.5% from 2023), and Postage, Express, & Telephone Fees (up $54.5 million, or 2.6% from 2023). Since 2020, Legal Fees & Expenses have increased by 19.3% ($260.3 million); Group Service & Administration Fees, during that same time, grew by 25.6%, or approximately $880 million. Postage, Express, & Telephone Fees have increased by $380.5 million since 2020, or 21.4%.
   
• “Taxes, Licenses, and Fees,” excluding federal income taxes and representing 14.5% of non-medical expenses in 2024, decreased by 25.3%, or about $6.5B, from 2020 to 2024. The segment saw its largest decrease in 2021, where filings showed a drop of over $9.5B.
   

About the Data

The data used in this analysis brief was obtained from Mark Farrah Associates' Health Coverage Portal™ database and sourced from health insurance companies reporting through the NAIC (National Association of Insurance Commissioners) via the Annual Analysis of Expenses – Underwriting and Investment Exhibit: Part 3. This analysis excludes a small number of plans that have not yet filed 2024 annual data.

About Mark Farrah Associates (MFA)

Mark Farrah Associates (MFA) is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Our product portfolio includes Health Coverage Portal™, County Health Coverage™, 5500 Employer Health ^plus, Medicare Business Online™, Medicare Benefits Analyzer™, and Health Plans USA™. For more information about these products, refer to the informational videos and brochures available under the Our Products section of the website or call 724-338-4100.

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