Highmark pulls in $14.7B in revenue during first 6 months

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Highmark Health pulled in $14.7 billion in revenue, an operating gain of $307 million, and net income of $417 million during the first six months of this year – performance the company largely attributed to its insurance businesses.

This compares to financials during the first six months of 2023 of $13.6 billion in revenue, an operating gain of $230 million and net income of $389 million.

The insurance business units – notably Highmark Health Plans, United Concordia Dental and HM Insurance Group – were characterized by steady membership and affordable product options, the company said. 

Additionally, Highmark Health's provider network, Allegheny Health Network (AHN), experienced increased patient volumes over the first six months of 2024 in nearly all care-delivery areas.

Overall, the company maintained a strong balance sheet, with $11 billion in cash and investments and net assets of $10 billion as of June 30.

WHAT'S THE IMPACT?

Highmark Health Plans reported operating revenue of $11.1 billion and an operating gain of $304 million for the first six months of the year, which the company said was driven by steady membership in both government and commercial businesses. The health insurance organization reported better-than-expected commercial membership enrollment in the southeastern Pennsylvania region following its entry in the market.

AHN, meanwhile, reported earnings before interest, taxes, depreciation and amortization of $71 million for the first six months, as more patients across western Pennsylvania chose AHN facilities. The health network reported an operating revenue of $2.5 billion for the period ending June 30.

Also during the first six months, AHN saw patient volumes rise year-over-year, inpatient discharges and observations increased 3%, outpatient registrations increased 6%, physician visits increased 4% and emergency room visits increased 7%.

When it came to Highmark's diversified businesses, United Concordia Dental delivered an operating revenue of $867 million and an operating gain of $45 million. Highmark's stop loss business, HM Insurance Group (HMIG), reported an operating revenue of $594 million and an operating gain of $33 million during the same stretch.

enGen, Highmark's information technology services company, reported operating revenue of $558 million and strong financial results spurred by what the company deemed steady platform enrollment.

THE LARGER TREND

Highmark is a nonprofit health insurance company that operates in Pennsylvania, Delaware, West Virginia and New York. It offers plans for individuals, families, businesses and Medicare. 

Highmark's parent company is the Allegheny Health Network, a 14-hospital system also based out of Pittsburgh.

In May, the company laid off 98 people, with all but three of the jobs at enGen. The job cuts were reportedly spurred by improved operating efficiencies.

This recent round of layoffs at Highmark brings the total number of jobs lost at the Pittsburgh-based organization to 357 for the year, up from last year's 259 total.

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.