¹ A national study of BC plans using data from 1986–1988 found that a 10 percent greater plan size is associated with a 1.66 percent lower administrative cost ratio and that a 10 percent greater market share reduces administrative cost ratios by 6.9 percent (Foreman,Wilson, and Scheffler 1996). These relationships also are documented in confidential data developed by Accenture for CareFirst, as reported by the Blackstone Group (2002). Of equal importance, the Foreman study found that a 10 percent greater market share reduces premiums by 6.2 percent but that size per se does not significantly reduce premiums.[Return to Text]