SEATTLE – Regence BlueShield paid $1.4 billion in medical care for its fully insured members in 2019, or $3,179 per member, according to unaudited figures filed March 2 with the Washington Office of the Insurance Commissioner.
Regence spent approximately 81 cents of every premium dollar received from members for doctor visits, hospital care, medications and other health care goods and services. Total membership was nearly 1,068,000 members at year end, including self-funded and BlueCard® members.
On total revenue of $1.7 billion, Regence had a net gain of 3.7 percent, or slightly less than four cents per premium dollar. This net gain was driven by operational efficiencies and an increase in investment income over 2018. Over the past 10 years, Regence’s net gain has averaged 2.2 percent.
Net income is placed in the company’s capital reserves to ensure stable health care coverage for its total enrollment. Capital reserves serve as a critical safety net so Regence can pay member claims. As a tax-paying nonprofit, this is Regence’s only source of funds for improvements, investments, cyber defense, and paying for higher than expected medical costs such as high-cost specialty drugs or claims during a public health crisis.
“For over 100 years, Regence has focused on supporting our members to ensure we can pay their claims while advocating for quality and affordability,” said Tim Lieb, president of Regence BlueShield. “Our solid 2019 financial results enable us to invest in health care innovations that improve care for Washingtonians.”
Regence incurred $63.8 million in federal and state income taxes and fees in 2019.
Founded 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 $1.8 million to benefit 1,019 different nonprofit organizations in 2019.
About Regence BlueShield
Regence BlueShield has been providing health care solutions to Washingtonians in select counties for nearly a century. As a tax-paying 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.