SALT LAKE CITY – Regence BlueCross BlueShield of Utah paid $1.05 billion in medical care for its fully insured members in 2022, or $4,791 per member, according to unaudited figures filed today with the Utah Insurance Department. The costs per member represent an average increase of more than five percent for doctor visits, hospital care, medications, COVID-19 tests and treatment, and other health care goods and services. Amid economic uncertainties and lingering pandemic-related challenges, Regence maintained its strong membership and ended 2022 serving more than 694,000 people, including self-funded and BlueCard® members.
On total revenue of $1.19 billion, Regence had net income of 1.3 percent, which represents just over one cent of every premium dollar received from members. For comparison, Regence’s annual net income over the past 10 years has averaged 2.5 percent. 2022 performance was driven by both stable underwriting results and positive investment income. Regence paid $39 million for COVID-19 tests and treatment in 2022 (including $17 million for fully insured claims) for members across Utah.
Net income is placed in the company’s capital reserves to ensure stable health care coverage so Regence can continue to pay member claims. As a taxpaying nonprofit, this critical safety net is Regence’s only source of funds for investments, cyber defense and paying higher than expected medical costs.
“During these challenging inflationary times, we’re working hard to deliver high quality health care and maintain affordability for our members,” said Jim Swayze, president of Regence BlueCross BlueShield of Utah. “We’re proud to serve Utah as a taxpaying nonprofit. Our financial stability allows us to invest in innovations that improve the health care experience in our state.”
Regence incurred $17.3 million in federal and state income taxes and fees in 2022.
Founded in 1944, Regence and affiliated companies employ nearly 350 people in Utah, driving more than $158 million in economic activity throughout the state, according to the 2020 ECONorthwest analysis. Additionally, Regence, together with its corporate foundation and employees, contributed $731,000 to benefit Utah nonprofit organizations in 2022.
About Regence BlueCross BlueShield of Utah
Based in Salt Lake City, Regence BlueCross BlueShield of Utah is the state’s first health insurer and now provides nearly 700,000 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 in Utah and nationwide experience health care. For more information, please visit regence.com, Facebook or Twitter.