Regence BlueCross BlueShield of Utah paid $978 million for members’ health care in 2014
SALT LAKE CITY – Regence BlueCross BlueShield of Utah paid $978.2 million in medical care for its fully insured members in 2014, or $3,903 per member, according to unaudited figures filed March 2 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.
“Our performance demonstrates that we stay true to our nonprofit values,” said Jennifer Danielson, president of Regence BlueCross BlueShield of Utah. “The best protection for our members is financial stability. Our 73-year history in Utah shows we have the strength and resources to continue serving members over the long-term.”
On gross revenue of $1.1 billion, Regence came within about two percent of its operating target after paying claims and administrative costs, including taxes and fees. While Regence had a net loss of $3.3 million for 2014 that was paid out of the company’s reserves, its three-year performance is positive with an average 3.7 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 $172.2 million for total 2014 prescription medications including Sovaldi for Hepatitis C patients.
Regence paid $31 million in taxes and fees, including $25.5 million to fund the Affordable Care Act, collected for the first time in 2014, and other taxes of $5.3 million.
Community impact. Founded in 1942, Regence employs nearly 400 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 $1.5 million and nearly 700 volunteer hours to nonprofit organizations in 2014.
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.