PORTLAND, Ore. – Regence BlueCross BlueShield of Oregon paid $1.85 billion in medical care for its fully insured members in 2020, or $4,065 per member, according to unaudited figures filed today with the Oregon Division of Financial Regulation.
Regence spent 81 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. During a historically challenging year, Oregon’s largest health insurer continued to grow and ended 2020 serving more than 940,000 people, including self-funded and BlueCard® members.
On total revenue of $2.28 billion, Regence had a net gain of 3.2 percent, equal to about 3 cents per premium dollar. For comparison, Regence’s annual net gain over the past 10 years has averaged 2.2 percent. 2020 performance was driven by positive investment returns, cost stewardship programs, strong member retention and enrollment, and a temporary decline in claims due to stay-at-home orders issued during the pandemic. Regence voluntarily issued $13.5 million in premium credits to fully insured customers and members across the state in response to reduced care during stay-at-home orders. Regence and its affiliated plans paid $110 million for COVID-19 tests and treatment in 2020 (including $50 million for fully insured claims) at no out-of-pocket costs to members across their four-state footprint.
Net income is placed in the company’s capital reserves to ensure stable health care coverage. These reserves serve as a critical safety net so Regence can pay member claims. As a tax-paying nonprofit, this is Regence’s only source of funds for investments, cyber defense, and paying for higher than expected medical costs.
“2020 was a tremendously trying year for Oregonians. As the state’s largest health insurer, we quickly pivoted at the pandemic’s onset to support our local communities and partners while ensuring our members could access COVID-19 tests and treatment at no personal cost,” said Angela Dowling, president of Regence BlueCross BlueShield of Oregon. “Through it all, we were able to maintain our financial stability so we can continue connecting our members with safe, effective and affordable care and pay their claims in good times and bad.”
Regence incurred $133 million in federal and state income taxes and fees in 2020.
Founded in 1941, Regence and its affiliated companies employ more than 3,000 people across Oregon, driving nearly $700 million in annual economic activity throughout the state, according to ECONorthwest. Additionally, Regence, together with its corporate foundation and employees, contributed more than $3.9 million to benefit 697 different nonprofit organizations in 2020.
About Regence BlueCross BlueShield of Oregon
Regence BlueCross BlueShield of Oregon, headquartered in Portland, has been serving Oregonians since 1941 and now provides more than 974,000 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 nationwide experience health care. For more information, please visit regence.com, facebook.com/regencebluecrossblueshield, or twitter.com/regenceoregon.