SALT LAKE CITY – Regence BlueCross BlueShield of Utah paid $836 million in medical care for its fully insured members in 2018, or $2,721 per member, according to unaudited figures filed March 1 with the Utah Insurance Department.
Regence spent 81 cents of every premium dollar received from members for doctor visits, hospital care, medications and other health care goods and services for its members. Total enrollment, including self-funded membership, continued to grow in 2018.
On total revenue of $1.03 billion, Regence had a net gain of 7.5 percent, or seven cents per premium dollar. This net gain was driven in large part by lower than expected claims and operational efficiencies. The company’s 2018 performance will help offset previously challenging financial years and ensure we can pay our members’ claims today and in the future. Over the past 10 years, Regence’s net gain has averaged 2.4 percent.
Net income is placed in the company’s capital reserves to ensure stable health care coverage for its total membership, including self-funded enrollment, of nearly 533,000 members. Capital reserves serve as a critical safety net for members, so Regence can always pay member claims, today and in the years to come. 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.
“Our 2018 results demonstrate our financial stability and commitment to serve our members while investing in solutions to improve the health care experience for Utahns,” said Jim Swayze, president of Regence BlueCross BlueShield of Utah. “We’ve served our members since 1944, and today Regence remains financially strong and well-positioned to continue serving our members.”
Regence incurred $18.1 million in taxes in fees in 2018, which includes the health insurer fee as well as federal and state income tax.
Founded in 1944, Regence employs more than 350 people in Utah, driving more than $83 million in economic activity throughout the state every year, according to ECONorthwest. Additionally, Regence and its Utah employees contributed more than $1.1 million to benefit 166 different nonprofit organizations in 2018.
About Regence BlueCross BlueShield of Utah
Regence BlueCross BlueShield of Utah, based in Salt Lake City, is the state’s first health insurer and now provides nearly 533,000 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 in Utah and nationwide experience health care. For more information, please visit regence.com, facebook.com/regenceutah, or twitter.com/regenceutah.