Elevated medical costs are impacting insurers nationwide, and Highmark Health is no exception, the company shared as it released its first-quarter earnings results.
Across Highmark, the company posted $8 billion in revenue and $13 million in net income, a decrease of 93% from its first-quarter net income of $194 million in 2024. Highmark’s revenue increased nearly 10%.
Last quarter, the company said its final-year net income ultimately came in at $50 million.
Allegheny Health Network (AHN) and Highmark Health Plans both reported double-digit revenue growth, 10% and 12% respectively, but only AHN can claim an operating income of $8 million. Highmark Health Plans saw a $9 million operating loss.
“Allegheny Health Network had a strong start to the year, reporting a positive operating margin for the first time in five years without pandemic-related assistance,” said Carl Daley, chief financial officer and treasurer of Highmark Health, in a news release. “This was driven by higher patient volumes as a result of management actions and an unusually severe respiratory season.
“Highmark Health Plans also experienced increased claims due to this surge, in addition to the broader industry trends of rising costs, particularly for prescription drugs, and greater utilization of physician and outpatient services,” he added.
Allegheny saw an increase of 7% in physician visits, 6% in emergency room visits, 4% increase in inpatient discharges and observations and 3% increase in outpatient registrations. Its revenue increased 10% year over year to $1.4 billion.
Highmark’s dental and stop-loss insurance division reported $800 million in operating revenue in the first quarter. United Concordia Dental had an operating income of $28 million, while HM Insurance Group recorded $19 million in operating income. The company’s dental business was a noted bright spot due to growing membership, Highmark said last quarter.
Highmark is a privately held Blue Cross and Blue Shield company.
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