SALT LAKE CITY – Regence BlueCross BlueShield of Utah paid $915 million in medical care for its fully insured members in 2020, or $3,926 per member, according to unaudited figures filed today with the Utah Insurance Department.
Regence spent approximately 86 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, Regence continued to grow and ended 2020 serving more than 651,000 people, including self-funded and BlueCard® members.
On total revenue of $1.06 billion, Regence had a net gain of 1.3 percent, equal to slightly more than one cent per premium dollar. 2020 performance was driven by positive investment returns, cost stewardship programs, and strong member retention. In response to a temporary decline in claims due to stay-at-home orders issued during the pandemic, Regence voluntarily issued $4.7 million in premium credits to fully insured customers and members across the state. Regence and its affiliates 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 that 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.
“Through an unprecedented year, our member focus and long-term financial stability enabled us to quickly pivot how we support our members, partners and local communities through the pandemic’s unique challenges,” said Jim Swayze, president of Regence BlueCross BlueShield of Utah. “Moving forward, we’ll continue to prioritize connecting our members with safe, effective and affordable care and aiding our state on the road to recovery.”
Regence incurred $35.7 million in federal and state income taxes and fees in 2020.
Founded in 1944, Regence and affiliated companies employ more than 350 people in Utah, driving more than $83 million in economic activity throughout the state, according to ECONorthwest. Additionally, Regence, together with its corporate foundation and employees, contributed almost $8 million to benefit 180 different nonprofit organizations in 2020.
About Regence BlueCross BlueShield of Utah
Regence BlueCross BlueShield of Utah, based in Salt Lake City, is the state’s first health insurer and now provides more than 675,000 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 in Utah and nationwide experience health care. For more information, please visit regence.com, facebook.com/regenceutah, or twitter.com/regenceutah.