SALT LAKE CITY – Regence BlueCross BlueShield of Utah paid $928 million in medical care for its fully insured members in 2019, or $3,978 per member, according to unaudited figures filed March 2 with the Utah Insurance Department.
Regence spent nearly 88 cents of every premium dollar received from members for doctor visits, hospital care, medications and other health care goods and services. Regence’s total membership grew to nearly 547,000 members at year end, including self-funded and BlueCard® members.
On total revenue of $1.06 billion, Regence had a net gain of 2.5 percent, or 2.5 cents per premium dollar. This net gain was driven by operational efficiencies and an increase in investment income over 2018.
Net income is placed in the company’s capital reserves to ensure stable health care coverage for its enrollment. Capital reserves serve as a critical safety net for members, so Regence can pay member claims. As a tax-paying nonprofit, this is Regence’s only source of funds for improvements, investments, cyber defense, and paying for higher than expected medical costs such as high-cost specialty drugs or claims during a public health crisis.
“Our 2019 results demonstrate our financial stability and commitment to serving our members while investing in solutions that improve their care,” said Jim Swayze, president of Regence BlueCross BlueShield of Utah. “We’ve served our members since 1944, and today Regence remains financially strong and well-positioned to deliver innovations that will improve the health of Utahns.”
Regence incurred $13.7 million in federal and state income taxes and fees in 2019.
Community impact
Founded in 1944, Regence employs more than 350 people in Utah, driving more than $83 million in annual economic activity throughout the state, according to ECONorthwest. Additionally, Regence and its Utah employees contributed more than $864,000 to benefit 219 different nonprofit organizations in 2019.
About Regence BlueCross BlueShield of Utah
Regence BlueCross BlueShield of Utah, based in Salt Lake City, is the state’s first health insurer. As a tax-paying 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.