Highmark headquarters in Pittsburgh.
David L. Holmberg, the company’s chief executive, told The Wall Street Journal that Highmark had lost $318 million on its individual health-law plans in the first six months of 2015, after, as the WSJ said, “rolling out a very broad array of options that had attracted many consumers with chronic conditions who required costly care.”
The paper said the company “was still working on the details of its offerings, but it expects a ‘mix shift’ toward plans that offer more limited choices of health-care providers. Such plans typically have lower premiums than versions with broader networks. About Highmark’s offerings for next year, Mr. Holmberg said: “Is there going to be a trend toward more narrow networks? Yes.”
Many insurers are trying to manage costs by offering plans with considerably tighter controls over the services that members use. The idea is to limit consumers’ access to higher-cost health-care providers, especially hospitals and physicians outside an insurer’s network. This could particularly hit academic medical centers.