The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) presents the activity of federal financial assistance programs of Highmark Health (the “Corporation”) for the year ended December 31, 2025. Federal awards received directly from federal agencies as well as federal awards passed through other prime recipients are included in the accompanying Schedule.
The Schedule is presented on the accrual basis of accounting. Negative expenditures detailed in the Schedule result from current year adjustments to prior year award amounts. The Corporation charges indirect costs to federal awards based on negotiated rates as defined in each grant award. The information in this Schedule is presented in accordance with the requirements of Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Therefore, some of the amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Because the Schedule presents only a selected portion of the activities of the Corporation, it is not intended to, and does not, present either the financial position, results of operations, or cash flows of the Corporation.
The CHP program (Assistance Listing Number (“ALN”) 93.767) in New York offers free or low-cost health insurance to uninsured children from birth through 18 years old. Highmark NY currently administers CHP (through a management contractor, Wellpoint Partnership Plan) to over 6,200 children in 8 counties across western New York. The CHP program provides eligibility, enrollment, education and outreach functions. Additionally, Highmark NY, provides insurance coverage and retains all insurance obligations. The CHP program in New York is funded by the New York State Department of Health, which receives federal funding.
AHN administers the Federal Nursing Student Loan Program (ALN 93.364). Net loans outstanding at the beginning of the year and loans made during the year under this program are included in the Schedule. The net loans outstanding at December 31, 2025 under this program were $358,880.
The Corporation applied for reimbursement of certain expenses related to the COVID-19 pandemic under ALN 97.036, FEMA Public Assistance through the Commonwealth of Pennsylvania. Expenditures are and will be reflected in the Schedule in the year in which a project application is obligated, and expenses associated with those funds have been incurred. The Schedule includes $54,089,478 of expenditures incurred in fiscal years 2020, 2021, 2022, or 2023 for projects which were obligated in fiscal year 2025.
In 2025, the Company is a subrecipient of federal program awards passed through the Commonwealth of Pennsylvania Department of Health, as follows: See the Notes to the SEFA for chart/table