PORTLAND, Ore. – Regence BlueCross BlueShield of Oregon paid $1.62 billion in medical care for its fully insured members in 2014, or $3,414 per member, according to unaudited figures filed March 2 with the Oregon Insurance Division.
Regence spent 86.5 cents of every premium dollar for doctors, hospitals, medications and other health care goods and services.
On gross revenue of $1.87 billion, Regence had a net gain of 1.9 percent, or less than two cents per dollar, which came entirely from investment income. This net income of $35.9 million is placed in the company’s capital reserves.
As a nonprofit, this is Regence’s only source of funds for improvements, investments and paying higher than expected medical costs, such as $245.5 million for total 2014 prescription medications including Sovaldi for Hepatitis C patients.
“Regence’s strong financial position entering 2015 reflects our long-term stability, nonprofit values and commitment to providing our members with access to quality care at an affordable price,” said Angela Dowling, president of Regence BlueCross BlueShield of Oregon.
Regence paid $59 million in taxes and fees, including $40 million to fund the Affordable Care Act, collected for the first time in 2014, and $2.5 million for premium taxes.
Community impact. Founded in 1941, Regence and its affiliated companies employ more than 3,100 people in Portland, Salem, Medford, Bend and Pendleton, driving more than $700 million in economic activity throughout the state, according to ECONorthwest. Regence and its Oregon employees also contributed $3.9 million and 3,300 volunteer hours to nonprofits in 2014.
About Regence BlueCross BlueShield of Oregon
Regence BlueCross BlueShield of Oregon, headquartered in Portland, has been serving Oregonians since 1941 and now provides nearly 750,000 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.