SEATTLE – Regence BlueShield paid $1.6 billion in medical care for its fully insured members in 2021, or $3,502 per member, according to unaudited figures filed today with the Washington Office of the Insurance Commissioner.
Regence spent approximately 85 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 more than 1,471,000 people, including self-funded and BlueCard® members.
On total revenue of $1.94 billion, Regence had a net gain of 4.9 percent, equal to slightly less than five cents per premium dollar. For comparison, Regence’s annual net gain over the past 10 years has averaged 2.6 percent. 2021 performance was primarily driven by positive investment returns. Regence paid $152 million for COVID-19 tests and treatment in 2021 (including $56 million for fully insured claims) at no out-of-pocket costs to members across Washington.
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.
“As a taxpaying nonprofit with more than 100 years of experience serving Washington, Regence is evolving in how we safely connect members to high quality, affordable care in partnership with local providers and community health centers,” said Claire Verity, president of Regence BlueShield. “Our financial stability enables us to invest in innovations that improve care and access for Washingtonians.”
Regence incurred $56.9 million in federal and state income taxes and fees in 2021.
Founded in 1917, Regence and affiliated companies employ more than 2,000 people in Washington, driving more than $541 million in economic activity throughout the state, according to ECONorthwest. Additionally, Regence, together with its corporate foundation and employees, contributed more than $2.2 million to benefit Washington nonprofit organizations in 2021.
About Regence BlueShield
Regence BlueShield has been providing health care solutions to Washingtonians in select counties for more than a century. 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 nationwide experience health care. For more information, please visit regence.com, facebook.com/regenceblueshieldwa or twitter.com/regencewa.