Fact sheet: Regence BlueShield 2011 financial performance

About Regence BlueShield: Regence BlueShield is a nonprofit health plan in Washington with more than one million members. Its roots go back 95 years to the first pre-paid health plan in the U.S., an acknowledged model for today’s Blue Cross and Blue Shield plans. Regence offers coverage to members at all stages of life, and tools to promote wellness and engagement. It is an independent licensee of the Blue Cross and Blue Shield Association.

Regence is nonprofit

Regence strives to set rates that just cover rising claims costs for its members.  

  • Our allegiance is to members, and we serve the communities where we live and work
  • In years with a net gain, that money stays with the (parent) company to benefit members
  • We are here to serve members for the long term, in good times and bad, unlike for-profit insurers that enter and leave the market (and their customers), depending on revenues

Regence is managing to its nonprofit values, as its underwriting results demonstrate.

  3-year average:     -1.1 of premium

  5-year average:     -0.8 of premium

10-year average:        1.2 of premium

2011 underwriting results

In accordance with state reporting requirements, the annual filing reflects the financial results primarily for the 534,112 members that Regence insures directly. Revenue from self-insured groups and certain assets are treated differently for state purposes. 

  • Revenue:                      $2,209,782,000
  • Claims paid:                  $1,888,453,000
  • Administrative costs:     $   375,304,000

Claims and administrative costs exceeded premium by 2.4 percent, or -$53,975,000

Administrative costs: Regence spent $10.5 million less in 2011 compared to 2010.

Taxes: Regence is a taxable 501(m) nonprofit and paid $60.1 million in 2011:

  • $   6.5 million - Federal income taxes
  • $ 12.2 million – Washington State High Risk Pool
  • $ 41.4 million – State premium taxes.

Investment income: Stock market fluctuation affected Regence’s conservative investment portfolio, producing income of $54.6 million in 2011 which helped close the gap from premium shortfall.

Net results: After factoring in investment income, Regence BlueShield ended 2011 with a loss of -0.5 percent, or -$10.2 million.

Capital reserves: Regence BlueShield has $994.1 million in capital reserves. This is a slight increase over 2010 because of the proceeds from the sale of its Seattle building. If not for these proceeds, Regence would have seen a decrease in capital reserves.