Highmark Health generates $627M in net revenue for first half of 2019

Highmark Health reported earning $627 million in revenue over expenses for the first half of the year thanks to strong growth in the company’s commercial and government business.

The company earned $75 million more in the first half of 2019 compared to the same period in 2018. Total consolidated revenues were $9.2 billion in the first six months.

Highmark made major gains in both its commercial and government insurance plans. Overall, the company has 4.4 million health plan customers.

The company’s commercial business delivered an operating gain of $151 million in the first half, according to a release. The government business that includes Medicare Advantage and Affordable Care Act exchanges also gained $269 million over the first six months of 2019.

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“This is due to the implementation of care management programs and designed benefits that encourage the use of lower-cost, higher-quality care options,” the company said. “These efforts result in savings for Highmark members through smaller premium increases—or even decreases—for health plan products and have led to a more stabilized risk pool and more appropriate pricing, particularly in the ACA business.”

Highmark’s provider arm, Allegheny Health Network, delivered $19 million in operating income through the first half of 2019, a decrease of $5 million compared to the year before. However, the provider’s net income was $47 million, which was an increase of $29 million compared to the same period in 2018.

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A major reason for the change was debt restructuring through a $1 billion bond offered in August 2018.

Overall inpatient discharges plus observation cases grew by 4% and ambulatory surgery center cases grew 10.2% compared to 2018. Physician visits also exceeded 1.6 million, which Highmark reported was an 11% spike from 2018.

Highmark ended its yearslong legal battle with the University of Pittsburgh Medical Center back in June with a deal that extends network coverage to UPMC facilities for Highmark customers for 10 years.