Highmark Health posted an operating income of $533 million on revenues of $27.1 billion in 2023, bolstered by membership growth in its health plans, the company said.
Pittsburgh-based Highmark Health published its 2023 year-end earnings March 18. The company reported a $338 million operating margin in 2023. The company improved on the $346 million net loss it reported in 2022.
Highmark Health includes Allegheny Health Network and Highmark Health Plans, which operates the Blue Cross Blue Shield affiliates in Delaware, West Virginia and parts of Pennsylvania and New York.
Highmark Health Plans accounted for $22.4 billion of Highmark Health's $27.1 billion operating revenue in 2023. The health plan segment posted a $400 million operating margin in 2023.
Some Blue Cross Blue Shield plans have reported year-end financial losses due to ongoing trends such as rising utilization in the Medicare Advantage space and growing demand for weight loss drugs.
Highmark Blue Cross Blue Shield of Western New York, a subsidiary of Highmark Health Plans, reported a net loss of $21 million on revenue of $3 billion in 2023.
The organization's positive financial results are due to strong performance from its insurance subsidiaries, including Highmark Health Plans, United Concordia Dental and HM Insurance Group, according to a March 18 news release from Highmark.
"It is our unique diversified business model and financial discipline that enable us to focus on long-term investment in our organization's growth, our transformation strategy, our communities, and our customers, members and patients," Carl Daley, CFO and treasurer of Highmark Health, said in the news release.
Highmark Health Plans' added 31,000 new Medicare Advantage members and 40,000 new ACA exchange enrollees in 2023.