PORTLAND, Ore. – Regence BlueCross BlueShield of Oregon paid $1.6 billion in medical care for its fully insured members in 2018, or $3,060 per member, according to unaudited figures filed March 1 with the Oregon Division of Financial Regulation.
Regence spent nearly 83 cents of every premium dollar received from members for doctor visits, hospital care, medications and other health care goods and services for its members. As Oregon’s largest health insurer, Regence expects continued growth in 2019.
On gross revenue of $1.97 billion, Regence Oregon had a net gain of 3.2 percent, equal to about 3 cents per premium dollar. This net gain was driven by lower than expected claims costs and responsible cost stewardship. Over the past 10 years, Regence’s net gain has averaged 2.2 percent.
Net income is placed in the company’s capital reserves to ensure stable health care coverage for its total enrollment, including self-funded membership, of approximately 783,000 members. Capital reserves serve as a critical safety net for members, so Regence can always pay member claims, today and in the years to come. 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.
“As a tax-paying nonprofit focused on delivering a better and simpler health care experience, our 2018 performance reflects our long-term financial strength and commitment to serving Oregonians today and in the future,” said Angela Dowling, president of Regence BlueCross BlueShield of Oregon.
Regence incurred $103.4 million in taxes and fees in 2018, which includes a $36.9 health insurer fee, as well as federal and state income tax.
Founded in 1941, Regence and its affiliated companies employ more than 3,000 people across the state, driving nearly $700 million in economic activity throughout the state, according to ECONorthwest. Regence and its Oregon employees also contributed $5 million to benefit 1,174 different nonprofit organizations in 2018.
About Regence BlueCross BlueShield of Oregon
Regence BlueCross BlueShield of Oregon, headquartered in Portland, has been serving Oregonians since 1941 and now provides nearly 783,000 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.