Highmark
| Company type | For-profit |
|---|---|
| Industry | Healthcare, Health insurance |
| Founded | 1977 |
| Headquarters | Pittsburgh , United States |
Area served | Pennsylvania, West Virginia, Delaware, eastern Ohio, Western and Northeastern New York |
| Products | Health insurance, Dental insurance, Vision care benefits, Stop-loss insurance, Limited benefit medical plans, Worksite insurance, Life and disability coverage, Healthcare IT services |
Number of employees | 18000+ |
Highmark is a for-profit healthcare organization based in Pittsburgh, recognized as one of the largest commercial health insurers in the United States. It operates through several for-profit subsidiaries within an Integrated Delivery Network structure.
Locality
As a leading insurer in Pennsylvania, Highmark expanded its footprint into West Virginia and Delaware after acquiring additional assets in 1996. Operating as Highmark Blue Cross Blue Shield, it provides coverage across 29 counties in western Pennsylvania. Meanwhile, Highmark Blue Shield serves 21 counties located in Central Pennsylvania and the Lehigh Valley. The company's presence also reaches into eastern Ohio border regions and throughout West Virginia via its subsidiary, Highmark Blue Cross Blue Shield West Virginia.
Highmark further increased its regional influence in June 2015 by purchasing Blue Cross of Northeastern Pennsylvania (BCNEPA).
Company history
Formed in 1977, Highmark resulted from the merger of two Pennsylvania Blue Cross and Blue Shield licensees: Pennsylvania Blue Shield (currently Highmark Blue Shield), headquartered near Harrisburg, and Blue Cross of Western Pennsylvania (now Highmark Blue Cross/Blue Shield) based in Pittsburgh. Together, they cover 62 out of the 67 counties in Pennsylvania. The company also operates as Highmark Blue Cross Blue Shield West Virginia and Highmark Blue Cross Blue Shield Delaware, with its main offices situated in downtown Pittsburgh.
In 2007, Highmark announced intentions to merge with Philadelphia-based Independence Blue Cross, aiming to build an organization employing over 18,000 people and generating a $4 billion economic impact within Pennsylvania. This merger was ultimately called off in 2009 when regulatory authorities imposed conditions requiring one party to abandon its "Blue Cross" or "Blue Shield" branding.
Highmark diversified into hospital ownership in 2011 by acquiring the financially distressed West Penn Allegheny Health System for approximately $500 million. This acquisition heightened competition with University of Pittsburgh Medical Center (UPMC), which had been expanding into insurance services. The ensuing rivalry created challenges for patient access and led to legal conflicts, including a lawsuit where Highmark accused UPMC of overcharging $300 million for cancer medications; arbitration subsequently mandated Highmark to pay $188 million.
In 2014, Highmark initially faced backlash for refusing family coverage to same-sex couples under the Affordable Care Act but later amended its stance. Demonstrating its dedication to inclusivity, Highmark achieved a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index in 2020.
Continuing its expansion strategy, Highmark acquired HealthNow in 2021, the operator of BlueCross BlueShield in Western and Northeastern New York, significantly broadening its market reach. That year, it also secured a decade-long naming rights deal for the Buffalo Bills’ stadium, now known as Highmark Stadium. This agreement extends through the construction and opening of a new stadium planned for the 2026 NFL season, enhancing Highmark’s regional presence and brand recognition.
Organizational structure
Highmark Inc. functions through a collection of fully owned subsidiaries, which bolster its presence within the health insurance and related markets. Among its principal subsidiaries are United Concordia Companies, Inc., which focuses on dental insurance services; Davis Vision, providing managed vision care benefits; and HM Insurance Group, offering stop-loss insurance, limited benefit medical plans, worksite insurance, life and disability coverage, along with administrative support services. In 2019, Highmark divested its vision retail arm, Visionworks of America, selling it to VSP Global to refine its operational focus.
The company’s organizational framework includes:
- Highmark Health Plan (Highmark Inc)
- Highmark Blue Cross Blue Shield (Western Pennsylvania)
- Highmark Blue Shield (Central Pennsylvania)
- Highmark Blue Cross Blue Shield West Virginia
- Highmark Blue Cross Blue Shield Delaware
- Highmark Health Options (Delaware)
- Allegheny Health Network—a hospital system encompassing Allegheny General Hospital, Allegheny Valley Hospital, Canonsburg Hospital, Forbes Regional Hospital, Grove City Medical Center, Jefferson Hospital, Saint Vincent Hospital, Western Pennsylvania Hospital, Westfield (NY) Memorial Hospital, and Wexford Hospital
- Diversified Business Units
- United Concordia (Dental Insurance)
- HM Insurance Group (Health-related Insurance Products)
- HM Health Solutions (Healthcare IT Services)
- The Highmark Foundation (Philanthropic Initiatives)
- HM Home and Community Services
This organizational design enables Highmark to maintain a leading role in the healthcare sector by seamlessly integrating insurance offerings with healthcare delivery and technology solutions, thereby fostering business expansion and sustaining competitive strength.