Regence drops a health plan for state employees

Regence BlueShield is discontinuing its modified Selections health plan offered to state employees, a move that will affect an estimated 44,800 members.

Regence BlueShield suffered $31.8 million in underwriting losses over a five-year period on the plan, said John Carlson, senior vice president of external services. He said premiums would need to increase by 70 percent in order to cover medical service costs.

With such a large health plan, the decision to discontinue service had to be made on data accumulated over a three- or four-year period, rather than annual data, Carlson said. Regence BlueShield didn't pull out earlier, instead waiting to see if the underwriting losses were cyclical or ongoing.

Under the Public Employees...