Highmark reports improved outlook from Standard & Poors

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Delaware health insurer Highmark Inc. was given an improved outlook by Standard & Poors.

The Pittsburgh-based  company maintained the A- rating on debt but saw its outlook improve from stable to positive.

Negatives include its exposure and management of insurance offered under the Affordable Care Act.

The diversified company also operates hospitals in Western Pennsylvania as well as Visionworks, an optical store that recently opened a second Delaware location near Christiana Mall.

Highmark is one of a handful of large health insurers in Delaware. 

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According to S&PP, the positive outlook reflects its view of the company’s diversification, as well as the significant margin within its Health Plan Division and other areas.

“Our increased opinion of Highmark’s competitive position reflects its leading market position in its core health plan segment serving Western, Central, and Northeastern Pennsylvania, as well as West Virginia and Delaware. Additionally, Highmark maintains significant market presence through the brands associated with its diversified businesses,” S&P stated.

The report continued, “Offsetting these strengths are the company’s lack of consistency in its operating performance for a company of its size and scope during the past couple years (due primarily to Affordable Care Act program results) as well as the capital and earnings volatility associated with the heavy investment in its clinical asset affiliate, AHN.”

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