Highmark Health closed the first half of the year with $17.5 billion in revenue and $2 billion in net income, bolstered by a significant turnaround at its insurance unit.
The $2 billion in net income accounts for $911 million in non-cash gains from the company's affiliations with Blue Cross and Blue Shield of Kansas City and Heritage Valley Health System.
Highmark Health Plans posted $672 million in operating income through the first two quarters of 2026, an increase of $612 million compared to the first half of 2025. Highmark said in the announcement that it expects elevated utilization and cost trends to persist across the industry, though pressures have eased.
The company took steps to adjust its strategy around pricing and the product lineup that put it on a path "for accelerated recovery." Highmark also said its Living Health strategy, which leans on technology, played a role in mitigating costs.
“Following two years of material losses in our health insurance businesses, we continued to see positive momentum and improved financial results in our Health Plans through the second quarter of 2026,” said Carl Daley, CFO and treasurer of Highmark Health, in the release.
"The improvements are a result of adjustments we made, our commitment to managing healthcare costs, and industry-wide moderation in claims trend across most lines of business," Daley continued. "While claims trends still remain elevated, the moderation together with our cost-reduction efforts further accelerated the recovery trajectory for our Health Plans."
In tandem with the turnaround at the insurance division, Highmark announced that it has named Gustavo Giraldo as president of Highmark Health Plans, effective immediately.
Giraldo joins Highmark following leadership stints at CVS Health, Centene and Cigna. He most recently served as the senior vice president of individual and family plans at CVS' Aetna, and he succeeds Tom Doran, who is "departing the organization to pursue other opportunities," Highmark said.
"Gus brings exceptional payer expertise, a passion for innovation, and a proven ability to lead transformation," said Heather Cianfrocco, chief operating officer at Highmark Health, in the announcement. "We are confident that he will help advance our Living Health strategy and create even greater value for the people and communities we serve."
Meanwhile, Allegheny Health Network, Highmark Health’s provider arm, posted positive financial results for the sixth straight quarter, including $160 million in operating income through the first six months of 2026. By comparison, that's up $88 million from the first half of 2025.
Inpatient volumes and utilization were "relatively flat" through the first half of the year, Highmark said. However, outpatient registrations were up 3% and physician visits increased 4%. Emergency department visits were also up 1%, according to the announcement.