Highmark Health Appoints Karen Hanlon as President, Strengthening Leadership Amid Industry Challenges

Highmark Health, the Pittsburgh-based healthcare company, has named Karen Hanlon as its new president, effective immediately. This strategic move comes as the organization navigates through a period of growth and tackles industry-wide challenges, particularly in utilization management and cost containment.

Hanlon's Expanded Role and Responsibilities

Karen Hanlon, who has been with Highmark since 1997, will assume the role of president while retaining her position as Chief Operating Officer (COO). In this dual capacity, Hanlon will report directly to David Holmberg, who continues as CEO of Highmark Health and board chairman of Highmark Inc.

Hanlon's responsibilities will encompass overseeing operations across multiple divisions of the company, including:

• Highmark Inc., the insurance arm
• enGen, Highmark Health's health technology division
• Allegheny Health Network, the company's health system

This expansive oversight includes an insurance business providing coverage for 7.1 million members across Pennsylvania, West Virginia, Delaware, and New York, as well as a health network comprising 14 hospitals and additional care sites.

Strategic Focus on Living Health and Financial Performance

A key aspect of Hanlon's role will be the continued implementation of Highmark's Living Health strategy. This initiative aims to identify products, solutions, and services that can improve members' health outcomes while reducing overall costs. The importance of this program has been underscored by recent challenges in the healthcare sector.

Highmark Health, like many insurers, has faced higher than expected utilization rates in 2025. Despite this, the company reported improved operating performance in the first half of the year compared to the previous year. However, the unanticipated surge in utilization has suppressed operating income, adding urgency to cost containment initiatives.

CEO David Holmberg emphasized the ongoing nature of these challenges, stating on LinkedIn that he expects high utilization issues to persist. This situation has heightened the focus on programs like Living Health as part of broader efforts to manage costs and improve health outcomes.

Hanlon's Track Record and Industry Impact

Hanlon's appointment comes on the heels of significant growth under her leadership. During her tenure as CFO and COO, Highmark has seen its revenue increase from $17 billion in 2014 to an estimated $33 billion in 2025. Her experience in overseeing strategic integrations and partnerships has been crucial to this expansion.

David Holmberg praised Hanlon's leadership, stating, "Karen is an exceptional leader with a deep understanding of both our organization and the healthcare industry. Through her previous roles as chief financial officer and chief operating officer, she has demonstrated strong, astute oversight of our operations, as well as a strategic mindset and vision that has been essential to our growth and success."

As the healthcare industry continues to face numerous challenges, Hanlon's expanded role is expected to play a pivotal part in Highmark Health's efforts to deliver improved health experiences while navigating complex market dynamics.