Highmark Health Plans reports $166M loss, cites GLP-1s as headwind

Highmark Health Plans reported a $166 million operating loss in 2024, driven by rising medical costs. 

Highmark, which operates health plans, health system Allegheny Health Network and several other businesses, reported its 2024 financial results March 13. 

In addition, Highmark reported $29.4 billion in 2024 operating revenue and a $209 million operating loss. 

Here are five things to know: 

1. Most of Highmark Health's revenue comes from Highmark Health Plans. The insurance segment posted $22 billion in revenue in 2024. 
   
   
2. Several industry headwinds contributed to Highmark Health Plans operating losses, CFO Carl Daley said in a March 13 news release. High prescription drug costs, especially GLP-1 drugs, contributed to the losses. 
   
   
3. High healthcare utilization, especially in Medicare Advantage, and challenges related to Medicaid redeterminations also contributed to the loss. 
   
   
4. The $166 million operating loss in 2024 was a decline from 2023, when Highmark Health Plans reported $400 million in operating income. 
   
   
5. Other Blue Cross Blue Shield plans are facing similar financial challenges. At least six BCBS organizations have reported operating losses in 2024. Most have cited rising medical costs, especially for GLP-1s and other prescription drugs, as the reason behind the losses. 

Highmark Health operates BCBS affiliates in Pennsylvania, Delaware, West Virginia and New York. The company's core health plan membership was 7.1 million in 2024. 

Read the full report here.