Operating margins declined by 1.0 percentage points to 3.3% in 2007. Results for the 39 plans varied; 6 had improvements in operating margins of at least one percentage point and nine worsened by three or more percentage points. The median health benefit ratio increased by 1.1 percentage points to 86.1%.

The median premium rate increase was 5.4% as median medical costs per member increased by 6.4%. Results varied by each of the Blue Cross Blue Shield Plans, and they are individually reported in PULSE.

Administrative costs increased at a median rate of 7.6% per member. "The increase among Blue Cross Blue Shield Plans as a whole is higher than reported in 2007 by Blue Cross Blue Shield Plans participating in this year's Sherlock Expense Evaluation Report benchmarking studies," said Douglas Sherlock, President of Sherlock Company. -- Sherlock Company