Press Release

Highmark Health Mid-Year 2023 Financials

PITTSBURGH (August 29, 2023) — Highmark Health today announced consolidated financial results for the first six months of 2023, reporting $13.6 billion in revenue, an operating gain of $230 million and net income of $389 million.

These results are due to the positive performance of most business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by strong membership as customers chose our plans due to their affordability and care accessibility. Highmark Health's provider network, Allegheny Health Network (AHN), saw increased patient volumes year-over-year, which boosted revenue. Additionally, the enterprise benefited from the positive equity market performance, as unrealized investment impact added about $200 million to Highmark Health's total net income.

Highmark Health continued to address cost pressures due to supply chain challenges, inflation and labor shortages while maintaining a strong balance sheet with $11 billion in cash and investments and net assets of more than $9 billion as of June 30, 2023.

"Highmark Health is in a strong, stable financial position, which allows us to deliver on our longstanding promise to strengthen the health and economic resilience of the communities we serve," said David Holmberg, president and chief executive officer of Highmark Health. "We have confidence in our financial performance, capital plan and our people, which enables us to continue to transform our organization and deliver on our Living Health model."

"Highmark Health's financial stability and strength, as well as our financial discipline, allow us to continue to successfully navigate through this volatile inflationary environment and various other headwinds," shared Janine Colinear, senior vice president of finance and interim chief financial officer and treasurer of Highmark Health. "We're a different organization than we were before the pandemic or even through it. We've grown tremendously over the years while strengthening our organization's diversified business operating model."

The Highmark Health Plans reported an operating gain of $237 million for the first six months of 2023. This strong financial performance was driven by high annual membership. The insurance organization continued to provide quality affordable coverage to consumers and communities while remaining committed to ensuring members have access to the care they need, closer to home.

United Concordia Dental extended its positive performance while addressing similar headwinds as the Health Plan, delivering an operating gain of $40 million for the first half of 2023. Highmark Health's stop loss business, HM Insurance Group (HMIG), reported an operating gain of $39 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 driven by higher platform enrollment and demand to support client projects. Technology-related revenue for the organization reached approximately $575 million for the first half of 2023.

AHN experienced earnings before interest, taxes, depreciation, and amortization (EBITDA) of $68 million for the first six months of 2023, as increasing patient volumes offset inflationary pressures. The provider network reported operating revenue of approximately $2.3 billion for the period ending June 30, 2023.

For the first half of 2023, AHN saw patient volumes rise overall compared to the same period in 2022, with an 8 percent increase in inpatient discharges and observations, a 6 percent increase in outpatient registrations, a 6 percent increase in physician visits, and an 8 percent increase in emergency room visits across the network.