SEATTLE – Regence BlueShield paid $1.4 billion in medical care for its fully insured members in 2020, or $3,144 per member, according to unaudited figures filed today with the Washington Office of the Insurance Commissioner.
Regence spent approximately 79 cents of every premium dollar received from members for doctor visits, hospital care, medications, COVID-19 tests and treatment, and other health care goods and services for its members. During a historically challenging year, Regence continued to grow and ended 2020 serving more than 1,332,000 people, including self-funded and BlueCard® members.
On total revenue of $1.75 billion, Regence had a net gain of 0.9 percent, equal to slightly less than one cent per premium dollar. 2020 performance was driven by positive investment returns, cost stewardship programs, and strong member retention and enrollment growth. In response to a temporary decline in claims due to stay-at-home orders issued during the pandemic, Regence voluntarily issued $13.9 million in premium credits to fully insured customers and members across the state. Regence and its affiliates paid $110 million for COVID-19 tests and treatment in 2020 (including $50 million for fully insured claims) at no out-of-pocket costs to members across their four-state footprint.
Net income is placed in the company’s capital reserves to ensure stable health care coverage. These 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 investments, cyber defense, and paying for higher than expected medical costs.
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. Additionally, Regence, together with its corporate foundation and employees, contributed more than $5.1 million to benefit 627 different nonprofit organizations in 2020.
Regence BlueShield has been serving Washingtonians in select counties for over a century and now provides over 1.2 million people 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.