In accordance with state requirements, Regence BlueCross BlueShield of Oregon filed on March 1, 2012, its unaudited financial results for 2011 with the Oregon Department of Consumer and Business Services.
As a nonprofit, Regence strives to operate at break even, collecting just enough premium to cover claims costs plus administration. Fluctuation in claims utilization and volatility in the investment market also have an impact on the company’s performance.
Regence’s 2011 financial filing reflects the following:
- Against revenue of $1.86 billion, $1.61 billion went to pay claims, or 86.3 percent
- Underwriting loss was -0.9 percent, or -$17.3 million
- Administrative costs declined by $23.9 million
- Investment income of $36.3 million helped bring the net result to 0.4 percent, or $7 million
The 2011 financial data was also filed with the National Association of Insurance Commissioners, which developed the formula for calculating these results, and which the state has adopted.
See fact sheet for further details from the annual filing.