HealthLeaders-InterStudy, the leading provider of managed care market intelligence, reports that Highmark Inc. was spared from reporting a net loss last year in part by its acquisition and diversification strategy which complements its core business. According to the new report entitled Blue Profiler: Highmark Inc., the insurer reported net income of $375.4 million in 2007, with $112 million of it coming from Highmark's dental, vision and reinsurance businesses.
"Highmark is in a very competitive market, and is constantly watching over its shoulder as the nation's second-largest health insurer, UnitedHealthcare, makes a steady push into Pennsylvania," said Chris Lewis, analyst at HealthLeaders-InterStudy. "Diversification is a way for them to ensure growth outside of their core business. In recent years Highmark has invested in dental, vision and administrative subsidiaries."
Highmark is trying to convince state regulators of its need to merge with Independence Blue Cross to better compete against national insurers. Revenues from its core healthcare businesses did not keep pace with rising medical and drug costs in 2007, but Highmark's subsidiaries and investment income allowed it to show a positive net income.
Besides diversification, Highmark is growing by offering Medicare products that reach beyond Pennsylvania and into West Virginia and Ohio. Highmark has significant brand loyalty and has the second-largest Medicare prescription drug plan enrollment in Pennsylvania, with more than 90,000 members. Its Medicare Advantage products lead the market in five of Pennsylvania's largest counties and enroll a total of more than 250,000 Medicare Advantage members.
Blue Profiler: Highmark Inc. is one of 15 Blue Profiler reports for 2008 on the nation's largest nonprofit Blue Cross Blue Shield plans, which together insure more than 50 million people.
About Blue Profiler
Blue Profiler offers the most comprehensive analysis of the nonprofit Blue Cross Blue Shield plans. Each report includes an individual nonprofit Blue plan and includes valuable analysis that will allow companies to more effectively partner with these dominant organizations. Each report includes information on:
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