Pittsburgh-based insurer Highmark brought in $16.5 billion in revenue for the first half of 2025, leaning on its health system and other diversified businesses as headwinds batter its payer unit.
That includes $121 million in operating income and $329 million in net income for the first six months of the year. As of June 30, the company had $10.3 billion in net assets.
The midyear financial results reflect an ongoing rebound at Allegheny Health Network, Highmark's health system. The AHN posted $2.8 billion in revenue and $72 million in operating income for the first half of the year, bolstered by significant improvements to volumes across multiple categories.
In the first half of the year, inpatient discharges and observations were up by 4% and outpatient registrations were up by 5% compared to the first six months of 2024. The AHN also saw a 7% increase in physician visits and a 4% increase in emergency room visits year over year.
Brian Devine, chief financial officer for the AHN, told Fierce Healthcare that the health system has invested in personnel to help drive greater clinical efficacy for patients.
"We've also had a significant focus on some back office initiatives around revenue cycle and our supply chain and purchasing contracts that have allowed us to manage some inflationary pressures," Devine said. "So all told, it has really paid off in our results that you see."
The AHN also logged $52 million in funding from the Federal Emergency Management Agency as part of prior years' COVID-19 settlements in the first half of 2025, though Devine said that, even with that windfall excluded, the health system is far improved from the prior year.
Highmark Health Plans, meanwhile, reported $12.5 billion in operational revenue for the first six months of the year and $60 million in operating income. Executives said the insurance division expects to continue to face ongoing challenges that are impacting the broader industry.
Carl Daley, chief financial officer of Highmark Health, told Fierce the insurer is putting an emphasis on its pricing cycles in the back half of the year and into the beginning of 2026. He said the company is feeling cost pressures in both medical and pharmaceutical spending.
"I think the reality is that we expected trends to moderate coming into 2025 and are observing that it is not moderating," said Kate Musler, chief financial officer at Highmark Health Plans. "It is staying elevated and that will continue to put pressure on the balance of the year as we move through the back half."
Finally, the company's diversified business segment posted $1.6 billion in consolidated revenue for the first half of the year. This includes $916 million at United Concordia Dental and $686 million at stop-loss insurer HM Insurance Group.