Highmark Health reported $29.4 billion in revenue and $50 million in net income for 2024 as the organization continues to weather notable headwinds that have battered health insurers.
Highmark also posted $209 million in operating losses, according to its earnings report released last week. The full-year results "reflect the negative operating performance of Highmark Health Plans," the company said in a press release, as the team faced cost pressures throughout the year.
United Concordia Dental and HM Insurance Group, the company's stop-loss division, were bright spots with steady performance. Highmark said that trend was backed by growing dental membership and a disciplined pricing approach.
Its health system, Allegheny Health Network, also saw improvements as patient volumes increased across "all delivery areas."
"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," Daley continued. "We're built for this and well-prepared to weather this challenging environment."
Highmark said its insurance arm did see an increase in membership by January 2025 compared to the prior year, totaling 7.1 million.
Through Dec. 31, AHN saw a 3% increase in inpatient discharges and observations as well as a 6% increase in outpatient registrations compared to the end of 2023. Physician and emergency room visits were up 5%, according to the press release.
CEO David Holmberg said in the press release that the company is continuing to focus on its Living Health strategy, and, in western Pennsylvania, Highmark's insurance arm and AHN have collaborated on value-based care. This partnership has led to improvements in patient satisfaction and outcomes while better managing costs, he said.
"Our industry needs a more economically sustainable approach that delivers better health experiences and outcomes," Holmberg said. "That is exactly the challenge we've taken on with our long-term transformational strategy and Living Health model."