Regence BlueCross BlueShield of Oregon reports strong financial result for 2013
PORTLAND, Ore. – Regence BlueCross BlueShield of Oregon paid $1.6 billion for the medical care of its fully insured members in 2013, or $4,224 per member, according to unaudited figures filed March 3 with the Oregon Insurance Division. Regence spent 86.4 cents of every premium dollar to medical services.
“The best protection for our members is financial stability, so we can be here to pay their claims for a long time to come,” said Angela Dowling, president of Regence BlueCross BlueShield of Oregon. “Our financial performance reflects our nonprofit values and our commitment to members.”
With gross revenue of $1.89 billion, Regence had a net gain of 1.0 percent. While health care costs are growing at historically slow rates, the total dollars for medical care increased by about $71 million, well above the premium increase of $38 million.
Investment returns entirely account for the net income of $18.0 million, which is placed in the company’s capital reserves. As a nonprofit, this is Regence’s only source of funds for improvement, investment and paying unforeseen medical costs.
Although Regence is nonprofit, it is required to pay taxes, estimated at $27 million for 2013. That includes an assessment of $9 million for the Oregon Medical Insurance Pool, $7.7 million in Oregon premium taxes and $11 million in federal taxes.
Community impact. Founded in 1941, Regence and affiliated companies employ more than 3,200 people in Portland, Salem, Medford, Bend and Pendleton, driving more than $700 million in economic activity throughout the state, according to ECONorthwest. Regence and its Oregon employees also contributed $3.9 million to nonprofits in 2013.
About Regence BlueCross BlueShield of Oregon
Regence BlueCross BlueShield of Oregon is a leading health plan in Oregon, with more than 750,000 members, offering health, life and dental insurance. Regence BlueCross BlueShield of Oregon is a nonprofit independent licensee of the Blue Cross and Blue Shield Association, and is affiliated with Regence BlueShield of Idaho, Regence BlueCross BlueShield of Utah and Regence BlueShield (selected counties in Washington). Together, the companies serve more than two million members in the Northwest/Intermountain Region. The Regence affiliated companies are committed to improving the health of its members and communities, and to transforming the health care system. For more information, please visit www.regence.com or www.twitter.com/RegenceOregon.