Regence BlueCross BlueShield of Oregon paid $1.5 billion in medical care for its fully insured members in 2016, or $3,100 per member, according to unaudited figures filed March 1 with the Oregon Division of Financial Regulation.
Regence spent 84 cents of every premium dollar for doctors, hospitals, medications and other health care goods and services. The nonprofit health insurer reduced operating expenses per member by 9 percent compared to the previous year (excluding Affordable Care Act fees). Total enrollment, including self-funded membership, grew by 5,388 members over 2016.
On gross revenue of $1.78 billion, Regence had a net gain of 1.7 percent, or less than two cents per premium dollar. More than half of net income was driven by investment income, with the remainder attributed to an underwriting gain of 1.6 percent. The individual line of business continued to pose financial challenges.
Net income of $30.2 million is placed in the company’s capital reserves to ensure stable health care coverage for its total membership, including self-insured enrollment, of approximately 750,000 members. As a nonprofit, this is Regence’s only source of funds for improvements, investments and paying for higher than expected medical costs such as high cost specialty drugs.
“While our industry continues to experience dramatic shifts, I’m proud to report that Regence’s focus on financial stability on behalf of our members is reflected in our strong financial performance,” said Angela Dowling, president of Regence BlueCross BlueShield of Oregon. “As a nonprofit, we are focused on our long-term goals of creating a more person-focused and economically sustainable health care system.”
Community impact. Founded in 1941, Regence and its affiliated companies employ more than 3,000 people in Portland, Salem, Medford, Bend and Pendleton, driving more than $700 million in economic activity throughout the state, according to ECONorthwest. Regence and its Oregon employees also contributed $5.3 million and 4,561 volunteer hours to nonprofits in 2016.
About Regence BlueCross BlueShield of Oregon
Regence BlueCross BlueShield of Oregon, headquartered in Portland, has been serving Oregonians since 1941 and now provides approximately 750,000 members with comprehensive health insurance solutions. As a nonprofit 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 nationwide experience health care. For more information, please visit regence.com, facebook.com/regencebluecrossblueshield, or twitter.com/regenceoregon.