SEATTLE – Regence BlueShield paid $1.4 billion in medical care for its fully insured members in 2018, or $3,133 per member, according to unaudited figures filed March 1 with the Washington Office of the Insurance Commissioner.
Regence spent approximately 78 cents of every premium dollar received from members for doctor visits, hospital care, medications and other health care goods and services. Enrollment remains strong and is expected to grow in 2019.
On total revenue of $1.8 billion, Regence had a net gain of 4.3 percent, or slightly more than four cents per premium dollar. This net gain was driven by lower than expected claims and operational efficiencies. Over the past 10 years, Regence’s net gain has averaged 1.8 percent.
Net income is placed in the company’s capital reserves to ensure stable health care coverage for its total enrollment, including self-funded membership, of nearly 1.1 million 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.
“For over 100 years, Regence has focused on supporting our members to ensure we can pay their claims today and in the future,” said Tim Lieb, president of Regence BlueShield. “Our strong financial results for 2018 showcase our strength and stability that allow us to continue exceeding consumer needs, while also investing in health care innovation.”
Regence incurred $114.8 million in taxes and fees in 2018, which includes a $37.9 million health insurer fee, as well as federal and state income tax.
Founded more than 100 years ago in 1917, Regence and affiliated companies employ more than 1,800 people in Washington, driving more than $377 million in economic activity throughout the state, according to ECONorthwest. Regence and its Washington employees also contributed $1.5 million to benefit 921 different nonprofit organizations in 2018.
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.