PORTLAND, Ore. – Regence BlueCross BlueShield of Oregon paid $1.6 billion in medical care for its fully insured members in 2017, or $3,078 per member, according to unaudited figures filed March 1 with the Oregon Division of Financial Regulation.
Regence spent nearly 84 cents of every premium dollar received from members for doctor visits, hospital care, medications and other health care goods and services for its members. The nonprofit health insurer reduced operating expenses per member by 4 percent compared to the previous year. Total enrollment, including self-funded membership, increased by 32,407 members in 2017.
On gross revenue of $1.91 billion, Regence Oregon had a net gain of 4.1 percent, equal to 4 cents per premium dollar. This net gain was driven in large part by lower than expected claims—a trend broadly experienced across the health insurance industry—as well as by operational efficiencies and responsible cost stewardship. Over the past 10 years, Regence’s net gain has averaged 1.8 percent.
Net returns are placed in the company’s capital reserves to ensure stable health care coverage for its total membership, including self-insured enrollment, of approximately 788,000 members. As a nonprofit, this is Regence’s only source of funds for improvements, investments and paying for higher than expected medical costs such as high-cost specialty drugs.
“With more than 100 years of experience navigating the evolving health care marketplace, Regence is well-positioned to continue meeting and exceeding consumer needs,” said Angela Dowling, president of Regence BlueCross BlueShield of Oregon. “Our 2017 performance will help offset recently challenging financial years. As a tax-paying nonprofit, we remain focused on offering innovative, high-quality, affordable care to our members.”
Regence incurred $62.0 million in taxes and fees in 2017, which includes federal and state income tax. Historically, Regence has paid taxes at a consolidated statutory rate of 20 percent. With the new corporate rate of 21 percent as a result of the Tax Cuts and Jobs Act, Regence expects to see a minimal increase in its consolidated federal income taxes in 2018 and beyond.
Community impact. Founded in 1941, Regence and its affiliated companies employ more than 3,000 people across the state, driving nearly $700 million in economic activity throughout the state, according to ECONorthwest. Regence and its Oregon employees also contributed $8.1 million and 8,961 volunteer hours to nonprofits in 2017.
About Regence BlueCross BlueShield of Oregon
Regence BlueCross BlueShield of Oregon, headquartered in Portland, has been serving Oregonians since 1941 and now provides more than 780,000 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 nationwide experience health care. For more information, please visit regence.com, facebook.com/regencebluecrossblueshield, or twitter.com/regenceoregon.