SALT LAKE CITY – Regence BlueCross BlueShield of Utah paid $1.06 billion in medical care for its fully insured members in 2021, or $4,545 per member, according to unaudited figures filed today with the Utah Insurance Department.
Regence spent approximately 90 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. Amidst the ongoing challenges of the pandemic, Regence continued to grow and ended 2021 serving nearly 700,000 people, including self-funded and BlueCard® members.
On total revenue of $1.17 billion, Regence had a net gain of 4.3 percent, equal to slightly more than four cents per premium dollar. For comparison, Regence’s annual net gain over the past 10 years has averaged 3.4 percent. 2021 performance was driven by positive investment returns and strong member retention. Regence paid $57 million for COVID-19 tests and treatment in 2021 (including $27 million for fully insured claims) at no out-of-pocket costs to 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 for higher than expected medical costs.
“Through another challenging year, Regence continued to evolve as we effectively connected our members to high-quality care and forged new partnerships that support our work to enhance the health care experience in Utah,” said Jim Swayze, president of Regence BlueCross BlueShield of Utah. “As we approach eighty years of service to Utahns, our financial stability and nonprofit values will help our great state emerge stronger from the pandemic.”
Regence incurred $13.0 million in federal and state income taxes and fees in 2021.
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 ECONorthwest. Additionally, Regence, together with its corporate foundation and employees, contributed more than $5.9 million to benefit Utah nonprofit organizations in 2021.
About Regence BlueCross BlueShield of Utah
Regence BlueCross BlueShield of Utah, based in Salt Lake City, is the state’s first health insurer. As a taxpaying 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.com/regenceutah, or twitter.com/regenceutah.