...Highmark Inc. and its Blue-branded affiliates are the health insurance plans of Highmark Health, an independent not-for-profit licensee of the Blue Cross Blue Shield Assn. based in Pittsburgh, Pa. At year-end 2018, it covered about 4.5 million members in PA, Delaware (DE), and West Virginia (WV). Our ratings on Highmark are supported by its strong competitive position that reflects its leading market share in its core insurance markets; extremely strong capitalization; and moderately conservative financial leverage. It also reflects its extensive provider networks, a growing value-based network that includes affiliate AHN, local market expertise, good product diversification in government-sponsored health plans, and good earnings contribution from its diversified business segment. This is offset by its three-state commercial market concentration that limits growth in this segment and exposes the company to political, regulatory, and economic policies that could affect capital and earnings....
