1. Anthem, Inc. and Cigna Corporation allocate their healthcare operating costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	Anthem Total Cost ($)	Cost Driver	Cost Driver Quantity	Cigna Total Cost ($)
Medical Claims	$5,500,000	Number of claims	500,000 claims	$5,000,000
Preventive Care	$3,000,000	Number of patients	100,000 patients	$2,600,000
Administrative	$2,200,000	Enrollment size	1,000,000 enrollees	$2,000,000
Total	$10,700,000			$9,600,000

• Calculate the healthcare operating cost per claim, per patient, and per enrollee for Anthem and Cigna using activity-based costing.
• Evaluate how differences in preventive care costs impact the healthcare outcomes and cost management strategies of Anthem and Cigna.
• Discuss the implications of administrative costs on operational efficiency and member satisfaction for both companies.