Highmark Health hits $27B in revenue and net income exceeds half-billion following layoffs

Highmark Health recorded $27.1 billion in revenue and a net income of $533 million for 2023, the company announced during its fourth-quarter results Monday.

The company reported an operating margin of $338 million, though there was an operating loss of of $173 million during 2023 for the Allegheny Health Network as the system recovers from the pandemic. That was offset by gains seen in health insurance and other investments.

According to a press release, Highmark holds $11 billion in cash and investments, and Highmark Health Plans reported an operating gain of approximately $400 million in 2023. It remains the largest insurer in Pennsylvania, Delaware, Virginia and western New York, said CEO David Holmberg. It was also selected to provide Medicaid to eligible members in West Virginia.

He said Highmark's annual revenue has grown 72% and Highmark Health Plan's membership has grown 32% since 2013.

"We have transformed from a successful regional insurer into an innovative, diversified health organization, comprehensive solutions and national influence," he said.

Last week, the company laid off 182 employees across the country, most of which were working for Blue Cross Blue Shield insurance plans in western Pennsylvania, reported the Pittsburgh Post-Gazette.

"We've been redesigning work and eliminating some roles in other cases," said Karen Hanlon, executive vice president and chief operations officer. "We've hired 6,100 people in 2023. If you look at the workforce changes we've made overall throughout 2023, we actually grew the workforce by about 2%."

She noted that some of that hiring growth has moved outside of the U.S., but 44,000 people are employed by Highmark overall, and total employment within the U.S. has increased.

Allegheny Health Network saw inpatient discharges and observations increase 7%, outpatient registrations increase 5%, physician visits increase 3% and emergency room visits increase 6%.

The network does not expect a loss of revenue following the Change Healthcare cyberattack, though there may be delays in submitting claims to insurers, said Kate Musler, senior vice president of health plan risk management and provider network, on the call.

United Concordia Dental also delivered an operating gain of $105 million and HM Insurance Group posted an operating gain of $55 million. Highmark boasted it has provided more than $225 million in community support and $825 million toward investments into its Living Health model.