Highmark Inc.

The stable outlook on Highmark reflects S&P Global Ratings' expectation that it will sustain its leading market positions and profitability in line with similarly rated peers. We forecast adjusted EBIT ROR of 2%-3% in 2021-2022, with 'AAA' capital redundancy, financial leverage of 20%-25%, and EBITDA fixed-charge coverage of 6x-8x. We could lower our ratings by one notch in the next 12-24 months if the company's ROR falls below 2% on a sustained basis, reflecting a weakened competitive position or cost control issues. Additionally, we could lower our ratings if the company's capitalization deteriorates to 'AA'. We could raise our ratings by one notch if the company improves its business diversity by geography and market segment, and it increases ROR to

...The Pittsburgh-based plan is the fourth-largest BCBS plan in the nation. Highmark Inc. is the lead insurance subsidiary of Highmark Health (unrated), which also owns Allegheny Health Network (AHN), a hospital system in Western Pennsylvania. Highmark is one of several large health plan consolidators in the BCBS system. At year-end 2020, Highmark Inc. covered about 4 million medical members in Pennsylvania (PA), Delaware (DE), and West Virginia (WV). In March 2021, Highmark added HealthNow New York Inc., the BCBS health plan in western and northeastern New York, as a controlled affiliate. The transaction added about 700,000 medical members....

Full Report