Pittsburgh-based Highmark Health, the parent organization of Allegheny Health Network and Blue Cross Blue Shield plans in four states, recorded strong financial results in 2021 driven in part by its regional expansion.
Highmark Health reported $22 billion in revenue for 2021, representing a 22 percent increase from the $18 billion posted in 2020, according to a March 22 news release. Highmark said the increase was largely driven by the acquisition of two Blue Cross health insurance plans, which were rebranded as Highmark Blue Cross Blue Shield of Western New York and Highmark Blue Shield of Northeastern New York. Highmark also acquired a 50 percent stake of Medicare and Medicaid insurer Gateway Health Plan in Pittsburgh in 2021.
For the 12 months ending Dec. 31, Highmark recorded an operating gain of $301 million and a profit of $440 million, excluding one-time gains. With the one-time gains, Highmark's profit totaled about $1.4 billion, according to a news release.
Highmark's insurance division recorded operating gains of more than $300 million in 2021, while Allegheny Health Network in Pittsburgh reported $154 million in earnings before interest, taxes, depreciation and amortization through the 12-month period.
"In 2021, Highmark Health delivered strong results driven by positive operational performance primarily in our insurance businesses," Saurabh Tripathi, CFO and treasurer of Highmark Health, said in the release. "Our financial position and strength continue to fund our advancements in innovation, strategy and collaborations, while these community investments and unwavering commitment to our exceptional providers positions us well to continue taking care of our patients and members."