Oregon Health Insurance Profits Soar

 

Leading the pack was Regence BlueCross BlueShield of Oregon, which shed 118,000 members from last year and raked in $29.2 million in net income so far this year alone. The figure shatters earnings over the entire last year of $21.9 million for Regence.

 

Most of Regence’s gains can be attributed to the stock market. The state’s largest commercial insurer posted net investment gains of $16.2 million, more than double the investment returns of any of its competitors.

 

All told, Oregon’s top eight commercial insurers made $64.7 million in net income in the first quarter of this year, more than three times what they earned this time last year. While at the same time, they covered 162,846 less people.

 

If current trends continue, Oregon insurers could earn more than $240 million this year up from $100.5 million last year. 

 

As for profitability, Providence ranked highest at 6.8 percent, taking home $8.8 million in profit out of more than $600 million in premiums. Regence recorded a profit margin nearly as high at 6.1 percent. Without a purported $29.8 million in claims adjustment costs, far higher than any comparable insurer, profits at Regence would have been much higher.

 

Overall profitability averaged 3.7 percent. The percent of money insurers spent on medical care hovered below 90 percent. Faring the worse was LifeWise, which recorded deficits of $1.7 million.

 

For related stories see articles at The Lund Report on year-end financials, third quarter 2009, second quarter 2009, first quarter 2009 and end of year 2008.