Highmark Blue Cross earns $417 million in profit as health insurer grows

Highmark Health, parent company of Blue Cross and Blue Shield plans in four states, reported $417 million in profit for the first half of this year as the company expanded its health insurance and medical provider businesses.

Pittsburgh-based Highmark, the nation’s fourth-largest Blue Cross and Blue Shield health insurer, reported revenue of $14.7 billion and “operating profit of $307 million.” The company wrote this in a report on Thursday morning. Highmark also said that as of June 30, 2024, it maintained “a strong balance sheet with $11 billion in cash and investments and net assets of $10 billion.”

“As a purpose-driven nonprofit organization with a customer-first culture, Highmark Health’s continued strong financial performance allows us to invest, grow and innovate in ways that create value for our customers and communities,” said David Holmberg, president and CEO of Highmark Health. .

In its earnings report says The company said the financial results were “attributable to the strong operating performance of the organization’s insurance businesses, specifically Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by stable membership and affordable product options,” the company said . “Additionally, Highmark Health’s network, Allegheny Health Network, experienced an increase in patients in the first six months of 2024 in nearly all care delivery areas.”

Highmark has 6.9 million health plan members in Pennsylvania, West Virginia, Delaware and New York. And the company has grown over the years, adding more health insurance plans and products, as well as a large network of medical providers through Allegheny Health Network’s 14 hospitals, more than 2,600 affiliated physicians, outpatient and other outpatient providers, and operations in Pennsylvania .

Highmark, which acquired great Allegheny health care system in 2023 reported $71 million in revenue for the first six months of 2024, “as more patients in western Pennsylvania chose AHN facilities for care.”

The Allegheny Health Network, which reported $2.5 billion in operating revenues for the six-month period, said patient counts increased year over year as “inpatient discharges and observations increased 3 percent, outpatient enrollments increased 6 percent , the number of doctor visits increased by 4 percent and the number of emergency departments increased by 3 percent. the number of visits increased by 7 percent.”

“Highmark Health remains financially strong and stable, allowing our organization to adapt and succeed as the healthcare landscape continues to evolve,” said Carl Daley, chief financial officer and treasurer of Highmark Health. “Our diversified portfolio of businesses, markets and products allows us to adapt and adjust as we face different headwinds over time, and enables us to execute on our mission to become a to deliver a remarkable health experience, giving people the freedom to be their best selves.”