Highmark fares better financially in the second year of pandemic
Highmark Health took in $22 billion in total revenues in 2021, leading to $440 million in earnings, it said last week.
The total earnings are up from $18 billion in 2020. The figure covers all businesses under the Highmark umbrella, including health insurance, United Concordia Dental and the Allegheny Health Network of hospitals and medical facilities in western Pennsylvania.
However, much of the gain resulted from Highmark acquiring two New York health insurance plans. Some Highmark companies, including Allegheny Health Network, lost money in 2021. Some of the Allegheny loss is attributed to higher costs for labor and protective equipment and costs related to supply chain problems, according to David Holmberg, the CEO of Highmark Health.
Highmark officials said overall use of health care within the Allegheny Health Network bounced back from 2020, with increases of five percent in people being admitted to the hospital, 18% in emergency room visits and 36% in outpatient care.
Overall, Highmark officials described a positive financial situation, including one who said, “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.”
Highmark said it has invested $1.4 billion since the start of the pandemic in things like credits to help people afford coverage, support health care providers and expand access to care.
It said its 2021 financial results will benefit consumers in the form of “measured year-over-year premium increases for health plan products.”
Officials noted Highmark hosted about 70 large-scale COVID-19 vaccination clinics, often in partnership with organizations such as school and churches, distributing about 430,000 vaccine doses.