SALT LAKE CITY – Regence BlueCross BlueShield of Utah paid $1.2 billion in medical care for its fully insured members in 2023, or $5,364 per member, according to unaudited figures filed today with the Utah Insurance Department. The costs per member represent an average increase of more than 12% for doctor visits, hospital care, medications and treatments, and other health care goods and services. 

The increase in member claims is primarily driven by increases in prescription drugs such as diabetic care medications. Regence grew its strong membership and ended 2023 serving more than 702,000, including self-funded and BlueCard® members.

On total revenue of $1.3 billion, Regence had net income of 1.6%, which represents less than 2 cents of every premium dollar received from members. For comparison, Regence’s annual net income over the past 10 years has averaged 2.5%. 2023 performance was primarily driven by positive investment income. 

The company places net income in its 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.

“We’re proud to serve the people of Utah every day, working to ensure they have access to high-quality, affordable health care,” said Jim Guemple, president of Regence BlueCross BlueShield of Utah. “Our financial stability ensures we can be there for our members in good times and bad, while continuing to improve their health care experience.”  

Regence incurred $15 million in federal and state income taxes and fees in 2023. 

Community impact

Founded in 1944, Regence and its affiliated companies employ nearly 450 people in Utah, and the company is committed to investing in the communities it serves. Together with its corporate foundation and employees, Regence contributed $761,000 to benefit Utah nonprofit organizations, and employees donated more than 660 volunteer hours in 2023.

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 more than 702,000 people with comprehensive health insurance solutions. 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 or Twitter.