Regence BlueShield of Idaho paid $329.4 million in medical care for its fully insured members in 2016, or $3,079 per member, according to unaudited figures filed March 1 with the Idaho Department of Insurance. The nonprofit health insurer grew total enrollment, including self-funded membership, by 6,605 members.
Regence spent approximately 79 cents of every premium dollar for doctors, hospitals, medications and other health care goods and services.
On gross revenue of $419 million, Regence had a net gain of 3.7 percent, or less than four cents per dollar of revenue, which was driven by a 5.6 percent underwriting gain. Our underwriting gain was a result of cost stewardship programs and lower claims utilization.
Net income of $15.6 million is placed in the company’s capital reserves to ensure stable health care coverage for its total enrollment, including self-funded membership, of approximately 140,000 members. As a nonprofit, this is Regence’s only source of funds for improvements, investments and paying higher than expected medical costs such as for high cost specialty drugs.
“I am pleased to share that, guided by our nonprofit values and member-focus, we improved our financial position in 2016,” said Scott Kreiling, president of Regence BlueShield of Idaho. “With more than 70 years of experience navigating industry and market changes, Regence is steadfastly focused on achieving our goal of protecting our members and transforming their health care experience.”
Regence paid $31.1 million in taxes and fees, including $9.3 million to fund the Affordable Care Act and $5.0 million for Idaho premium tax.
Community impact. Founded in 1946 in Northern Idaho, Regence employs more than 550 people in Boise, Lewiston, Pocatello and Coeur d’Alene, driving more than $100 million in economic activity throughout the state every year, according to ECONorthwest. Additionally, Regence and its Idaho employees contributed more than $650,000 and more than 1,200 volunteer hours to nonprofit organizations in 2016.
About Regence BlueShield of Idaho
Regence BlueShield of Idaho, based in Lewiston, has been serving Idahoans for 71 years and now provides approximately 140,000 members with comprehensive health insurance solutions. As a nonprofit mutual insurance company and independent licensee of the Blue Cross and Blue Shield Association, Regence is part of a family of companies dedicated to transforming health care by delivering innovative products and services that change the way consumers in Idaho and nationwide experience health care. For more information, please visit regence.com, facebook.com/regenceblueshieldofidaho or twitter.com/regenceidaho.