Regence BlueCross BlueShield of Utah paid $947.0 million for members’ health care in 2015
SALT LAKE CITY – Regence BlueCross BlueShield of Utah paid $947.0 million in medical care for its fully insured members in 2015, or $4,006 per member, according to unaudited figures filed March 1 with the Utah Insurance Department.
Regence spent 87.3 cents of every premium dollar for doctors, hospitals, medications and other health care goods and services.
“Regence’s financial strength ensures that we can focus on helping members access quality and affordable care,” said Jennifer Danielson, president of Regence BlueCross BlueShield of Utah. “Our nonprofit values and more than 70 years of experience in Utah are valuable guideposts to our long-term goals amidst this period of uncertainty in our industry.”
On gross revenue of $1.1 billion, Regence was short of its operating target after paying claims and administrative costs. This shortfall was driven primarily by the individual line of business, resulting in strategic adjustments to Regence’s 2016 products and benefits. Regence had a net gain of $3.1 million for 2015, contributing to the company’s reserves, and its five-year performance is positive with an average 2.1 percent net gain.
As a nonprofit, reserves are Regence’s only source of funds for improvements, investments and paying higher than expected medical costs such as high dollar specialty drug..
Regence paid $29.3 million in taxes and fees, including $27.6 million to fund the Affordable Care Act, and other taxes of $1.7 million.
Community impact. Founded in 1944, Regence employs nearly 350 people in Utah, driving more than $127 million in economic activity throughout the state every year, according to ECONorthwest. Additionally, Regence and its Utah employees contributed more than $950,000 and nearly 300 volunteer hours to nonprofit organizations in 2015.
About Regence BlueCross BlueShield of Utah
Regence BlueCross BlueShield of Utah, based in Salt Lake City, is the state’s first health insurer and now provides more than 450,000 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 in Utah and nationwide experience health care. For more information, please visit regence.com, facebook.com/regenceutah, or twitter.com/regenceutah.