Pittsburgh-based Highmark Health reported an operating loss of $171 million for the first half of 2015, down from a $12 million operating gain in the same period a year ago, according to a Pittsburgh Post-Gazette report.
The company reported that it more than tripled its losses on health plans sold to exchange consumers in the first six months of this year, posting $318 million in losses in that category. Highmark President David L. Holmberg attributed the increase to those who purchased Highmark exchange plans having little to no medical care in the past. He said insurance customers on Affordable Care Act marketplace plans had chemotherapy claims 50 percent more often and accounted for nearly 60 percent higher inpatient charges than commercial plan customers, according to the report.
Highmark plans to raise premiums on its exchange plans by 25 percent to 30 percent for the enrollment period that begins Nov. 1 to ease further losses.
Allegheny Health System in Pittsburgh, which Highmark operates, accounted for operating losses of $16 million in the first half of 2015, compared to $12 million in losses in the same period of last year. However, revenue at the system did grow in the first half of this year, which Highmark CFO Karen Hanlon said was largely attributable to an increase in patient volumes, according to the report.
Highmark ended the first half of 2015 with a net surplus of $221 million.
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