The health plan, which grew 4 percent in the past year to 2.3 million members, including
The competition from Highmark is squeezing UPMC's profits, CFO
"UPMC continues to be financially and operationally strong in the still-evolving and challenging environment," DeMichiei said.
Highmark, the state's largest health insurer, is trying to hold onto business because its non-
But DeMichiei said many
"Ultimately, yes, some people will choose to stay with Highmark," he said. "We're confident that employees are going to have choice so that they're not locked into the Highmark card."
While health plan membership is growing, yearly increases slowed in the past 12 months after spiking 17 percent and 16 percent in 2012 and 2013, respectively.
The insurance gains and strong hospital patient volume led to
Total revenue at the system, which includes the region's largest hospital network and second-largest health insurer, jumped 10 percent to
But pricing pressures aren't the only worries for UPMC's insurance division. DeMichiei said growth is being hampered by a change earlier this year to the Affordable Care Act that allowed some consumers and small employers to keep less robust plans. Insurers were expecting added business from people who would have been forced to change their coverage to comply with the law. DeMichiei said that has "frozen the middle and small commercial market."
In addition to an improved operating profit, UPMC reported better net income. The health system said net income was
The gain was the result of strong investment and financing income, which totaled
UPMC also reported a one-time charge of
In April, UPMC said it sold its stake in
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