SEATTLE – Regence BlueShield paid $1.8 billion in medical care for its fully insured members in 2022, or $3,622 per member, according to unaudited figures filed today with the Washington Office of the Insurance Commissioner. The costs per member represent an average increase of more than three 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 continued to grow and ended 2022 serving more than 1,484,000 people, including self-funded and BlueCard® members.
On total revenue of $2.13 billion, Regence had net income of 0.8 percent, which represents less than one cent of every premium dollar received from members. For comparison, Regence’s annual net income over the past 10 years has averaged 2.6 percent. Although 2022 saw strong growth in membership, the more modest net income was primarily driven by declines in investment returns. Regence paid $136 million for COVID-19 tests and treatment in 2022 (including $43 million for fully insured claims) for 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 higher than expected medical costs.
“Nearly 1.5 million Washingtonians count on us to help provide access to high-quality, affordable care,” said Claire Verity, president of Regence BlueShield. “Our financial stability allows us to continue investing in the communities and people we serve.”
Regence incurred $58.4 million in federal and state income taxes and fees in 2022.
Community impact
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 the 2020 ECONorthwest analysis. Additionally, Regence, together with its corporate foundation and employees, contributed $2.3 million to benefit Washington nonprofit organizations in 2022.
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.