Regence BlueCross BlueShield of Utah paid $884 million for members’ health care in 2016
Regence BlueCross BlueShield of Utah paid $884 million in medical care for its fully insured members in 2016, or $4,080 per member, according to unaudited figures filed March 1 with the Utah Insurance Department.
Regence spent 86.6 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 36,828 members over 2016.
On gross revenue of $1.02 billion, Regence had a nominal net gain of 0.8 percent, or less than one cent per premium dollar, which was solely driven by investment income. The individual line of business continued to pose financial challenges.
Net income of $8.6 million is placed in the company’s capital reserves to ensure stable health care coverage for its total membership, including self-funded enrollment, of approximately 490,000 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.
“Guided by our nonprofit values and focus on improving our members’ experience, Regence remains in strong financial position entering 2017,” said Jennifer Danielson, president of Regence BlueCross BlueShield of Utah.
Regence paid $34.3 million in taxes and fees, including $22.9 million to fund the Affordable Care Act.
Community impact. Founded in 1944, Regence employs more than 350 people in Utah, driving more than $127 million in economic activity throughout the state every year, according to ECONorthwest. Additionally, Regence and its Utah employees contributed more than $755,000 and more than 800 volunteer hours to nonprofit organizations in 2016.
About Regence BlueCross BlueShield of Utah
Regence BlueCross BlueShield of Utah, based in Salt Lake City, is the state’s first health insurer and now provides approximately 490,000 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 in Utah and nationwide experience health care. For more information, please visit regence.com, facebook.com/regenceutah, or twitter.com/regenceutah.