Regence BlueShield paid $1.33 billion for member care in 2016
Regence BlueShield paid $1.33 billion in medical care for its fully insured members in 2016, or $3,413 per member, according to unaudited figures filed March 1 with the Washington Office of the Insurance Commissioner.
Regence spent approximately 80 cents of every premium dollar for doctors, hospitals, medications and other health care goods and services. The nonprofit health insurer grew total enrollment, including self-funded membership, by 22,098 members over 2016.
On gross revenue of $1.67 billion, Regence had a net gain of 3.2 percent, or slightly more than three cents per premium dollar. More than two-thirds of this net income was driven by investment returns, with the remainder attributed to an underwriting gain of 1.3 percent.
This net income of $53.7 million is placed in the company’s capital reserves to ensure stable health care coverage for its total enrollment, including self-funded membership, of nearly 1.1 million members. As a nonprofit, reserves are Regence’s only source of funds for improvements, investments, and paying for higher than expected medical costs such as high dollar specialty drugs.
“For nearly a century, Regence has served as a trusted partner and our continued financial strength and stability will ensure we are serving Washingtonians well into the future,” said Don Antonucci, president of Regence BlueShield. “By achieving our financial goals for 2016, we are well-positioned to serve our customers and provide high quality, affordable care to our members.”
Regence paid $101.1 million in taxes and fees, including $35.1 million to fund the Affordable Care Act, and $22.2 million for Washington premium tax, and $20.9 million for other taxes and assessments.
Community impact. Founded 100 years ago in 1917, Regence and affiliated companies employ more than 1,600 people in Washington, driving more than $400 million in economic activity throughout the state, according to ECONorthwest. Regence and its Washington employees also contributed $3.6 million and nearly 1,800 volunteer hours to nonprofits in 2016.
About Regence BlueShield
Regence BlueShield has been serving Washingtonians in select counties for nearly a century and now provides nearly 1.1 million 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/regenceblueshieldwa or twitter.com/regencewa