Regence BlueShield reports strong financial result for 2013
SEATTLE – Regence BlueShield paid $1.82 billion for the medical care of its fully insured members in 2013, or $3,763 per member, according to unaudited figures filed March 3 with the Washington Office of the Insurance Commissioner. Regence spent 83.2 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 Don Antonucci, Regence BlueShield president. “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 income of $2.19 billion, Regence ended 2013 with a net gain of 2.2 percent. While health care cost are growing at historically slow rates, the total dollars for members’ care still increased by about $37.5 million above a premium increase of $32.7 million
Investment returns are almost entirely responsible for the net income of $48.8 million, 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 $51 million for 2013. That includes an assessment of $11.9 million for the Washington State Health Insurance Program, $32.6 million in Washington premium taxes and $7.3 million in federal taxes.
Community impact. Founded in 1917 in Tacoma, Regence and its affiliated companies employ more than 1,800 people in Seattle, Tacoma, Everett, Burlington and Spokane, driving more than $400 million in economic activity throughout the state each year, according to ECONorthwest. Regence and its Washington employees donated $1.77 million to nonprofits in 2013.
About Regence BlueShield
Regence BlueShield is a leading health plan in Washington with more than one million members, offering health, life and dental insurance. Regence BlueShield 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 BlueCross BlueShield of Utah. 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/RegenceWA.