Highmark Health revenue grows 9% year over year to $29.4 billion; reports $50 million net income through year-end 2024 despite industry challenges

• Highmark Health Plans reports negative operating performance while addressing industrywide medical trend costs
• Allegheny Health Network reports 9% total revenue growth and improved operating performance year-over-year

PITTSBURGH, March 13, 2025 /PRNewswire/ -- Highmark Health today announced consolidated financial results for the full-year 2024, reporting $29.4 billion in revenue, $50 million in net income, and $209 million in operating losses.

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These results reflect the negative operating performance of Highmark Health Plans, which faced industrywide medical trend pressures that continued into the fourth quarter of 2024. United Concordia Dental and HM Insurance Group saw steady operating performance, driven by increasing dental membership and pricing discipline. Highmark Health's provider network, Allegheny Health Network (AHN), also saw operating improvements driven by increased patient volumes across all care delivery areas. Highmark Health maintained a strong balance sheet with $11.7 billion in cash and investments and net assets of $9.8 billion as of December 31, 2024.

"Our industry needs a more economically sustainable approach that delivers better health experiences and outcomes. That is exactly the challenge we've taken on with our long-term transformational strategy and Living Health model," said David Holmberg, president and chief executive officer of Highmark Health. "The most advanced version of our Living Health model is here in western Pennsylvania. In 2024, Highmark and AHN launched a value-based program in which they share the goals and financial risks of managing their shared population. This uniquely integrated economic model builds on more than a decade of consumer-focused payer-provider collaboration that has improved customer satisfaction and health outcomes while controlling overall costs for health plan members and group customers."

"While our consolidated revenue improved, we continue to face significant industry headwinds and medical cost trends, including high costs for prescription drugs, especially GLP-1s, the impact of Medicaid redeterminations, and nationwide high utilization, especially within the Medicare Advantage portfolio," said Carl Daley, chief financial officer and treasurer of Highmark Health. "We expect these industrywide challenges to continue, but our comprehensive strategies and strong financial position will allow us to navigate these difficulties while financing and powering our transformational strategy. We're built for this and well-prepared to weather this challenging environment."

Highmark Health Plans

Highmark Health Plans reported $22 billion in operating revenue and $166 million in operating losses through the year-end of 2024. The health insurance organization faced increasing headwinds from rising health care usage, continued effects of Medicaid redeterminations, and high prescription drug costs, particularly GLP-1s (glucagon-like peptide-1 receptor agonists). The organization also reported increased core health plan and Blue Card membership for Jan. 2025 compared to the same period in 2024, with 7.1 million members, maintaining Highmark Health Plans' position as the largest health insurer in Pa., De., Wv., and western NY.

Allegheny Health Network (AHN)

AHN's total revenue increased 9% year-over-year to $5.1 billion, and its operating loss improved 15% to $147 million compared to the same period last year partially driven by increased patient volumes. The provider system reported $115 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year-end of 2024.

Through Dec. 31, 2024, AHN reported the following patient volume increases compared to the same period in 2023:

• 3% increase in inpatient discharges and observations
• 6% increase in outpatient registrations
• 5% increase in physician visits
• 5% increase in emergency room visits

Diversified Businesses

Highmark Health's diversified businesses delivered $4.1 billion in consolidated operating revenue through Dec. 31, 2024. United Concordia Dental reported $1.7 billion in operating revenue and $105 million in operating gain. enGen reported $1.2 billion in operating revenue. HM Insurance Group reported $1.2 billion in operating revenue and $56 million in operating gain.

About Highmark Health 

Highmark Health, a Pittsburgh, PA-based enterprise that employs 44,000 people who serve millions of Americans across the country, is the parent company of Highmark Inc., Allegheny Health Network, and enGen. Highmark Inc. and its subsidiaries and affiliates provide health insurance to 7.1 million members in Pennsylvania, West Virginia, Delaware, and New York, as well as dental insurance, and related health products through a national network of diversified businesses. Allegheny Health Network is an integrated delivery network in western Pennsylvania comprised of 14 hospitals, more than 2,600 affiliated physicians, ambulatory surgery centers, an employed physician organization, home and community-based health services, a research institute, a group purchasing organization, and health and wellness pavilions. enGen is focused on meeting the information technology platform and other business needs of the Highmark Health enterprise as well as unaffiliated health insurance plans by providing proven business processes, expert knowledge, and integrated cloud-based platforms. To learn more, visit www.highmarkhealth.org.  

SOURCE Highmark Health