Regence BlueShield of Idaho reports strong financial result for 2013
BOISE – Regence BlueShield of Idaho paid $385 million for the medical care of its fully insured members in 2013, or $2,991 per member, according to unaudited figures filed March 3 with the Idaho Insurance Department. Regence spent 80.2 cents of every premium dollar for 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 Scott Kreiling, president of Regence BlueShield of Idaho. “We aim to just about break even on operating income, and we met that goal in 2013. This reflects our nonprofit values and our commitment to members.”
With gross revenue of $479.6 million, Regence ended with a net gain of 2.9 percent. While health care costs are growing at historically slow rates, the total dollars for medical care increased by about $21 million, above a premium increase of $19 million.
Investment returns account for most of the $14 million net income, 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 $11 million: $6 million in premium tax, $2.4 million in federal tax and $2.5 million to the state high risk insurance pool.
Community impact. Founded in 1946 in Northern Idaho, Regence employs more than 600 people in Boise, Lewiston, Pocatello, Twin Falls and Coeur d’Alene, driving more than $100 million in economic activity throughout the state every year, according to ECONorthwest. Additionally, Regence and its Idaho employees donated $663,000 to nonprofits in 2013.
About Regence BlueShield of Idaho
Regence BlueShield of Idaho is a leading health plan in Idaho with more than 150,000 members, offering health, life and dental insurance. Regence BlueShield of Idaho is a nonprofit mutual insurance company and an independent licensee of the Blue Cross and Blue Shield Association. Regence BlueShield of Idaho is affiliated with Regence BlueCross BlueShield of Oregon, 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/RegenceIdaho.