Regence BlueCross BlueShield of Oregon 2011 financial performance
About Regence BlueCross BlueShield of Oregon: Regence is a nonprofit health plan with 730,000 members (fully insured and self-insured). Founded in 1941, 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 BlueCross BlueShield of Oregon is managing to its nonprofit values, as its underwriting results demonstrate.
3-year average: 0.3 of premium
5-year average: -0.6 of premium
10-year average: 0.1 of premium
2011 underwriting results
In accordance with state reporting requirements, the annual filing reflects the financial results primarily for the 468,915 members that Regence insures directly. Revenue from self-insured groups and certain assets are treated differently for state purposes.
- Revenue: $1,865,875,000
- Claims paid: $1,610,730,000
- Administrative costs: $ 272,456,000
Claims costs and the costs of administering those claims exceeded premium by 0.9 percent, or -$17.3 million
Administrative costs: Regence spent $23.9 million less in 2011 compared to 2010.
Taxes: Regence is a taxable 501(m) nonprofit and paid $32.7 million in 2011:
- $ 3.7 million - Oregon state and local income taxes
- $ 8.1 million - Federal income taxes
- $ 8.5 million - State premium taxes, for Clark County, Wash.
- $12.4 million - Oregon high risk pools
Investment income: Stock market fluctuation affected Regence’s conservative investment portfolio, producing income of $36.3 million in 2011, which helped close the gap from premium shortfall.
Net results: After factoring in investment income, Regence BlueCross BlueShield of Oregon ended with a net gain of 0.4 percent, or $7 million.
Capital reserves: Regence BlueCross BlueShield of Oregon has $522 million in capital reserves, a decrease of $22 million from 2010.