SEATTLE, Wash. – Regence BlueShield paid $1.56 billion in medical care for its fully insured members in 2014, or $3,312 per member, according to unaudited figures filed March 2 with the Washington Office of the Insurance Commissioner.
Regence spent 85.5 cents of every premium dollar for doctors, hospitals, medications and other health care goods and services.
On gross revenue of $1.83 billion, Regence had a net gain of nearly 1 percent, or less than one penny per dollar, which came entirely from investment income. This net income of $17.1 million is placed in the company’s capital reserves.
As a nonprofit, this is Regence’s only source of funds for improvements, investments and paying higher than expected medical costs, such as $286.4 million for total 2014 prescription medications including Sovaldi for Hepatitis C patients.
“Regence enters 2015 in a strong financial position that reflects our long-term stability, nonprofit values and steadfast commitment to serving our members,” said Don Antonucci, president of Regence BlueShield.
Regence paid $87 million in taxes and fees, including $46 million to fund the Affordable Care Act, collected for the first time in 2014, and $26 million for Washington premium tax, and $15 million for other taxes and assessments.
Community impact. Founded in 1917, Regence and its affiliated companies employ more than 1,800 people in Washington, driving more than $400 million in economic activity throughout the state, according to ECONorthwest. Regence and its Washington employees also contributed $7.2 million and 1,600 volunteer hours to nonprofits in 2014.
About Regence BlueShield
Regence BlueShield has been serving Washingtonians in select counties for nearly a century and now provides nearly 1.1 million 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 nationwide experience health care. For more information, please visit regence.com, facebook.com/regenceblueshieldwa or twitter.com/regencewa