- Insurance business units report positive operating performance while facing mounting industry-wide cost pressures
- Allegheny Health Network reports 9% total revenue growth and improved EBITDA year-over-year
PITTSBURGH, Nov. 26, 2024 /PRNewswire/ -- Highmark Health today announced consolidated financial results for the first nine months of 2024, reporting $22.1 billion in revenue, $529 million in net income, and $273 million in operating gain.
These results reflect the positive operating performance of Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by steady membership and affordable product options. Highmark Health's provider network, Allegheny Health Network (AHN), also saw increased patient volumes across all care delivery areas. Highmark Health maintained a strong balance sheet with $12 billion in cash and investments and net assets of $10.5 billion as of Sept. 30, 2024.
"I am pleased with Highmark Health's consolidated revenue improvement in the third quarter of 2024 compared to the same period last year. However, our organization faces cost pressures and headwinds like others in our industry," said Carl Daley, chief financial officer and treasurer of Highmark Health. "These pressures developed earlier in the year, but they accelerated during the third quarter of 2024. As a result, we saw some deterioration in our operating gain primarily related to high prescription drug costs, the ongoing impact of Medicaid redeterminations, and the upward trend in health care utilization. While we anticipate these pressures to persist into 2025, our diversified portfolio of businesses, markets, and products allow us to adapt and adjust accordingly."
Highmark Health Plans
Highmark Health Plans reported $16.6 billion in operating revenue and $275 million in operating gain year-to-date through the period ending Sept. 30, 2024. The health insurance organization faced headwinds from rising health care usage, continued effects of Medicaid redeterminations, and high prescription drug costs, particularly GLP-1s (glucagon-like peptide-1 receptor agonists).
Allegheny Health Network (AHN)
AHN reported $120 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first nine months of 2024, reflecting increased patient volumes. AHN's total revenue increased 9% year-over-year to $3.8 billion, and its operating loss improved 39% to $88 million compared to the same period last year.
Through Sept. 30, 2024, AHN reported the following patient volume increases compared to the same period in 2023:
- 3% increase in inpatient discharges and observations
- 7% increase in outpatient registrations
- 5% increase in physician visits
- 6% increase in emergency room visits
Diversified Businesses
Highmark Health's diversified businesses delivered $3.1 billion in consolidated operating revenue through Sept. 30, 2024. United Concordia Dental reported $1.3 billion in operating revenue and $75 million in operating gain. enGen reported $879 million in operating revenue. HM Insurance Group (HMIG) reported $907 million in operating revenue and $55 million in operating gain.
About Highmark Health
Highmark Health, a Pittsburgh, PA -based enterprise that employs more than 44,000 people who serve millions of Americans across the country, is the parent company of Highmark Inc., Allegheny Health Network, enGen, and Helion. Highmark Inc. and its subsidiaries and affiliates provide health insurance to 6.9 million members in Pennsylvania, West Virginia, Delaware, and New York, as well as dental insurance, and related health products through a national network of diversified businesses. Allegheny Health Network is an integrated delivery network in western Pennsylvania comprised of 14 hospitals, more than 2,600 affiliated physicians, ambulatory surgery centers, an employed physician organization, home and community-based health services, a research institute, a group purchasing organization, and health and wellness pavilions. enGen is focused on meeting the information technology platform and other business needs of the Highmark Health enterprise as well as unaffiliated health insurance plans by providing proven business processes, expert knowledge, and integrated cloud-based platforms. Helion works with payers to cultivate high-performing networks while empowering providers to operate at their best. To learn more, visit www.highmarkhealth.org.
SOURCE Highmark Health
