Highmark Health picks veteran leader to succeed longtime CEO

Highmark Health turned to a company veteran to succeed its longtime CEO.

The Pittsburgh-based organization named Karen Hanlon, Highmark’s president, as its next chief executive officer. She will succeed David Holmberg and take over as CEO on Jan. 1, 2027.

Hanlon first joined Highmark in 1997 and has held a number of different roles before becoming president. When she takes over as CEO, David Holmberg will transition to a new role as executive chairman.

Highmark is one of the nation’s largest Blue Cross Blue Shield associations. While most of Highmark’s earnings come from its insurance business, Highmark also owns the Allegheny Health Network, a health system operating 16 hospitals and scores of clinics in western Pennsylvania.

Hanlon said in a post on LinkedIn that she’s excited about the new role, but she said she is “even more excited for what’s in store for the next chapter of our organization.”

“Together, we will continue advancing our Living Health strategy, delivering remarkable health experiences, and transforming healthcare for future generations,” Hanlon wrote.

“I also look forward to seeing David Holmberg continue to influence the future of Highmark Health as executive chairman, and I thank him for all that he has done for the organization.”

Highmark said Hanlon has played a crucial role in Highmark’s growth, including the acquisition of Blue Cross Blue Shield of Kansas City (Blue KC), which has helped expand the company’s reach beyond its base in the eastern U.S.

Hanlon also helped establish the Allegheny Health Network, which has become a key part of the company’s strategy to expand care delivery.

Allegheny just completed the acquisition of the Heritage Valley Health System and its two Pennsylvania hospitals in July. Highmark and Allegheny have vowed to invest about $285 million in Heritage’s facilities over the next decade. Heritage Valley boasts $500 million in annual revenue and serves patients in western Pennsylvania and parts of Ohio and West Virginia.

Like other health insurance companies, Highmark has weathered some financial headwinds recently. Highmark Health posted a consolidated net loss of $175 million in 2025.

Citing losses from the company’s health plans, S&P Global revised its outlook for Highmark to negative in March.

“We expect continued pressure on the consolidated operating performance of Highmark Health in 2026, even though we think certain lines of business will turn profitable and margin pressure will start easing,” Highmark says.

Allegheny Health Network accounted for only 18% of Highmark’s business, but S&P notes that the health system is gaining growing importance for the organization. Allegheny generated over $5 billion in patient service revenue in 2025, according to S&P.

“AHN is an integral part of Highmark's integrated delivery and financing strategy,” S&P says.

Highmark has touted its Living Health strategy tying its health insurance plans, care delivery services through Allegheny, and digital health products to offer better service to patients and improved outcomes.

Holmberg offered a strong endorsement of Hanlon. He said on LinkedIn that Highmark is in “great hands” with Hanlon taking over as CEO.

Holmberg said Hanlon “understands our business deeply, has earned the trust of our employees and stakeholders, and is the right leader to guide Highmark Health into its next chapter of growth and transformation.