Press Release

Highmark Health Year-End 2022 Financials

PITTSBURGH (March 20, 2023) — Highmark Health today announced consolidated financial results for the 2022 fiscal year, reporting $26 billion in revenue, an operating gain of $440 million, and a net loss of $346 million. Excluding unrealized investment impact, the organization reported net earnings of roughly $47 million for 2022.

These results are due to the positive performance of the insurance business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by increased membership, more affordable options, and better health outcomes. Highmark Health's provider network, Allegheny Health Network (AHN), experienced overall increased patient volumes year-over-year but faced continued cost pressures due to supply chain challenges, inflation, and higher labor costs and shortages.

Highmark Health maintained a strong balance sheet with $11 billion in cash and investments and net assets of $9 billion as of December 31, 2022.

The organization's strong financial performance allowed Highmark Health to provide more than $300 million in community support, including charity care, uncompensated care, and corporate giving, and direct more than $900 million toward capital investments to support building the organization's blended health model.

"Despite facing multiple challenges, Highmark Health is in a strong, stable position. This strength and stability allows us to deliver on our Living Health promise to build a health, coverage, and care ecosystem that works better for everyone. We continue to deliver on a longstanding promise to play a leading role in strengthening the health and economic resilience of the communities we serve. And we have confidence in our financial performance and capital plan, our Living Health strategy, and our people," said David Holmberg, president and chief executive officer of Highmark Health. "What we said, and proved, during the pandemic, is just as true in this economic environment: Highmark Health is built for this. In good times or bad, we have the strength and flexibility to adapt to challenges and continue providing exceptional service to our customers, members, patients and communities."

"Highmark Health experienced headwinds from staffing challenges, equity portfolio performance, and supply chain issues throughout 2022, and we expect some of those challenges will continue into 2023," explained Janine Colinear, senior vice president of finance and interim chief financial officer and treasurer of Highmark Health. "However, the diversity of our business model, our continued growth through partnerships and affiliations, and strong performance will allow us deliver on our mission to create a remarkable health experience, freeing people to be their best."

The Highmark Health Plans reported an operating gain of more than $500 million for full year 2022, as well as an increase in membership enrollment of 2.5% year-over-year as more customers sought Highmark's affordable options and improved health outcomes.

Highmark's diversified businesses reported combined earnings of more than $200 million through December 31, 2022.

United Concordia Dental extended its positive performance, delivering an operating gain of $137 million for the 2022 fiscal year. Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $65 million for the same period.

enGen, Highmark Health's information technology services company, whose platform serves millions of lives across the country, reported strong financial results in 2022 driven by higher platform enrollment and demand to support client projects.

AHN experienced earnings before interest, taxes, depreciation, and amortization of $19 million for 2022, as rising labor and supply chain costs continued to offset stable or increasing patient volumes. Excluding unrealized investment impact, AHN's EBITDA was $107 million. It reported an operating revenue of $4.4 billion for the period ending December 31, 2022.

In 2022, AHN saw patient volumes rise overall compared to 2021, with an 8 percent increase in outpatient registrations excluding vaccination appointments, a 3 percent increase in physician visits, and a 7 percent increase in emergency room visits. Inpatient discharges and observations remained relatively flat, but births increased 5 percent across the network compared to 2021.