March 04, 2013
Regence BlueCross BlueShield of Utah reports strong financial result for 2012
SALT LAKE CITY – According to unaudited figures filed March 1 with the Utah Insurance Division, Regence BlueCross BlueShield of Utah’s 223,523 fully insured members had medical claims totaling $840 million in 2012, or $3,403 per member. Regence paid 84.0 cents of every premium dollar to pay those claims.
On a gross income of $1 billion, Regence had a net income of $37 million, excluding a one-time $75 million distribution of accumulated earnings from a subsidiary to its parent company. Without this distribution, the net gain for 2012 was 4.1%, after paying claims, overhead and taxes. The net gain is placed in the company’s capital reserves; as a nonprofit, this is the health plan’s only source of funds for improvement, investment or payment of unforeseen medical costs.
“Our performance reflects our strong nonprofit values and commitment to long-term financial stability,” said Jennifer Danielson, Regence BlueCross BlueShield of Utah president. “This stability is especially important to our members as we look to fuller implementation of the health care reform law in 2014.”
Although Regence a nonprofit insurer, it is required to pay federal and state taxes, which totaled $5.5 million.
Community impact. Regence employs more than 500 people in Utah, driving more than $127 million in economic activity throughout the state every year, according to ECONorthwest.
About Regence BlueCross BlueShield of Utah
Regence BlueCross BlueShield of Utah is a leading health plan in Utah, with more than 330,000 members, offering health, life and dental insurance. Regence BlueCross BlueShield of Utah 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 Oregon 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