MDH Releases Report on Health Plan Administrative Spending

August 7, 2025

On August 7, the Minnesota Department of Health’s Health Economics Program released its most recent report on health plan company administrative spending. 

The report presents administrative spending data for health plan companies that collected more than $3 million in total health premiums from Minnesota residents in 2022 and 2023. The report includes a summary of high-level trends and findings, as well as detailed tables for each eligible Minnesota group purchaser on 14 categories of administrative spending. 

Key findings include: 

  • In 2023, health plan companies collectively spent $2.84 billion to offer, design, sell, and enable use of health insurance benefits for Minnesota residents. 

  • This spending amounted to an average of $491 per insured Minnesotan in 2023. 

  • Administrative spending by health plan companies in 2022 and 2023 continued its upward trend, both in absolute terms and on a per insured basis. 

  • Administrative spending as a percent of total costs settled at the second (2022) and third (2023) highest level of spending over the past 10 years. 

Findings from this report represent a baseline for a broader study on data and estimates of system-wide administrative spending related to healthcare insurance and delivery. That study—for which results are expected in early 2026—aims to identify recommendations for reducing the volume of expenditures devoted to healthcare administration in Minnesota. View the Low-Value Care and Administrative Health Care Spending Studies: Update for the Minnesota Legislature for more information.   

The full report can be found here.  

Latest News

Physician/Olympian to Give Inspirational Address at Empowering Physicians Event

August 20, 2026

A physician and Olympian will give an inspirational address as part of this year's Empowering Physicians event on Friday, September 25, at the Minneapolis Institute of Art.

Minnesota Vaccination Rates Trending in Wrong Direction

August 20, 2026

Minnesota received some disturbing news this week from the Centers for Disease Control and Prevention (CDC), as data shows that for the 2025-2026 school year, vaccination rates decreased and non-medical exemptions increased.  

Appellate Court Sides with Texas Medical Association in No Suprises Act Lawsuit

August 20, 2026

On August 11, a federal appellate court sided with the Texas Medical Association (TMA) argument that the way the No Surprises Act’s qualifying payment amount (QPA) is calculated has historically favored payers in arbitration.