Highmark, which has a large chunk of the insurance market in Lancaster County, is asking the state for more freedom to spend money on the health system it owns in Western Pennsylvania.
Pennsylvania Insurance Department said Highmark was allowed to buy what is now Allegheny Health Network in 2013 on the condition that the insurer notify the department of any transfers of $100 million or more to the network, and get approval for any transfers of $250 million or more.
Highmark is now asking that most of those conditions be dropped, the department said, and has also submitted a plan to provide up to $850 million in 2017 and 2018 for investments to the hospital system, as well as forgive approximately $720 million in loans.
“The plan projects a significant increase in patient volume and operating income for AHN beginning in 2019 when consent decrees between Highmark and UPMC will end,” the Insurance Department stated in a news release. “The consent decrees have allowed most Highmark, Inc. customers to continue to use UPMC facilities and providers as in-network, but that is set to end in June of 2019.”
Highmark recently reported overall profits of $59 million for 2016, after losing $85 million in 2015. Its net assets stand at $5.2 billion.
The department will accept public comments on the request at ra-in-comment@pa.gov until May 8.
Date: April 09, 2017