What are the best health insurance stocks?

These three companies are some of the best in the health insurance industry:UnitedHealth GroupCVS HealthElevance Health

How do insurance companies make money?

Insurance companies make money through two channels: collecting premium payments and investing those funds. The companies make the bulk of their money from underwriting policies, and though they must maintain adequate reserves to cover expected claim payouts, they invest the remaining money to generate additional returns.

Are health insurance stocks a good investment?

Health insurance stocks are generally good picks for long-term investors who seek relative stability.

Which health insurance companies are publicly traded?

Publicly traded health insurers include: Alignment Healthcare (NASDAQ:ALHC), Cigna (NYSE:CI), Clover Health Investments (NASDAQ:CLOV), Centene (NYSE:CNC), CVS Health (NYSE:CVS), Elevance Health (NYSE:ELV), Humana (NYSE:HUM), Molina Healthcare (NYSE:MOH), Oscar Health (NYSE:OSCR), and UnitedHealth Group (NYSE:UNH).

Are dividends common among health insurance stocks?

Yes, many health insurance stocks pay dividends.

Can health insurance stocks help diversify my portfolio?

Health insurance stocks could help diversify your portfolio, assuming that you don't already have significant exposure to the health insurance industry.

Best Health Insurance Stocks for 2026 and How to Invest

Q: Are health insurance stocks risky?

Like all businesses, health insurers face risks, including economic downturns and rising competition. However, health insurance companies also have a few unique risks, including those related to regulatory changes, reimbursement pressure, and unforeseen medical costs.

By Keith Speights – Updated Feb 6, 2026 at 11:29 AM EST | Fact-checked by Robin Hartill, CFP

Key Points

Investing in essential services like health insurance provides the potential for long-term gains.
UnitedHealth Group, a major insurer, drives growth through acquisitions and diverse services.
CVS Health combines pharmacy retail and health insurance, offering robust dividend yields.

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Ticker Information Table
Name and ticker	Current price	Market cap	Dividend yield
UnitedHealth Group (NYSE:UNH)	$282.34	$256.3 billion	3.87%
Elevance Health (NYSE:ELV)	$282.68	$62.4 billion	3.03%
CVS Health (NYSE:CVS)	$76.13	$97.1 billion	3.49%
Centene (NYSE:CNC)	$36.35	$17.9 billion	0.00%

Data as of Mar 11, 2026. Showing 4 of 4 tickers.

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1. UnitedHealth Group

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NYSE: UNH

UnitedHealth Group

Today's Change

(-0.99%) $-2.83

Current Price

$282.34

Key Data Points

Market Cap

$256B

Day's Range

$278.90 - $287.58

52wk Range

$234.60 - $606.36

Volume

6.1M

Avg Vol

Dividend Yield

3.87%

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UnitedHealth Group (UNH -1.04%) ranks as the biggest health insurer in the world by far. Its UnitedHealthcare business unit offers health plans for employers and individuals. It's also a major player in the markets for Medicare Advantage, Medicare supplemental plans, and Medicaid.

The company's Optum business segment provides information- and technology-enabled health services, including OptumRx pharmacy benefits management (PBM) services. While UnitedHealthcare generates around three-fourths of the company’s total revenue, Optum has been a key growth driver for UnitedHealth Group in the past.

Some of UnitedHealth Group's growth in recent years has been driven by acquisitions. For example, the big healthcare company acquired Change Healthcare in October 2022.

More recently, UnitedHealth closed its $3.3 billion purchase of home health and hospice provider Amedisys in August 2025.

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2. Elevance Health

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NYSE: ELV

Elevance Health

Today's Change

(1.31%) $3.66

Current Price

$282.68

Key Data Points

Market Cap

$62B

Day's Range

$280.92 - $290.58

52wk Range

$273.71 - $458.75

Volume

2.9M

Avg Vol

1.9M

Dividend Yield

3.03%

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Although Elevance Health (ELV +1.38%) is only a fraction of the size of UnitedHealth Group in terms of market capitalization, it's still one of the largest health insurers. Elevance, formerly known as Anthem, operates Blue Cross and/or Blue Shield plans in 14 states but is licensed to sell health insurance throughout the country.

It competes in the same arenas as UnitedHealth Group, with offerings that include employer-sponsored and individual health plans, Medicare Advantage, Medicare supplements, and Medicaid. Elevance Health's other businesses include pharmacy benefits manager CarelonRx and Carelon Services, which provides healthcare services that include behavioral health, health and wellness programs, integrated care delivery, palliative care, and utilization management.

Elevance's health benefits segment, which includes the company's individual, employer group, BlueCard, Medicare, Medicaid, and federal health businesses, generates more than 80% of total revenue. However, Carelon Services is its fastest-growing unit.

3. CVS Health

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NYSE: CVS

CVS Health

Today's Change

(-2.73%) $-2.13

Current Price

$76.13

Key Data Points

Market Cap

$97B

Day's Range

$76.10 - $78.66

52wk Range

$58.35 - $85.15

Volume

353K

Avg Vol

8.4M

Gross Margin

13.78%

Dividend Yield

3.49%

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You might think of CVS Health (CVS -2.73%) as just a pharmacy retailer, but the company also runs CVS Caremark, one of the largest PBMs in the country. Thanks to its 2018 acquisition of Aetna, CVS Health is a top health insurer, too.

The company's healthcare benefits segment, which consists mainly of Aetna, generates more than one-third of CVS' total revenue. The segment's revenue has grown rapidly, driven primarily by its Medicare and commercial insurance products.

Although several of these top health insurance companies pay dividends, CVS Health offers the most attractive dividend yield in the group.

4. Centene

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NYSE: CNC

Centene

Today's Change

(-16.10%) $-6.97

Current Price

$36.34

Key Data Points

Market Cap

$18B

Day's Range

$36.29 - $42.40

52wk Range

$25.07 - $66.03

Volume

822K

Avg Vol

6.2M

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Health insurance stock FAQ

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About the Author

Keith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.

TMFFishBiz

Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health and UnitedHealth Group. The Motley Fool has a disclosure policy.

Risks for health insurance companies

Like all businesses, healthcare companies face risks, including economic downturns and rising competition. However, health insurance companies also have a few unique risks, including those related to:

Regulatory changes: The health insurance industry is highly regulated at the federal and state levels. The potential for major regulatory changes that cause challenges for health insurers is an ongoing risk. For example, if the U.S. implemented a single-payer health plan in the future, health insurers would likely see many of their business opportunities vanish. It's also possible that presidential administrations could curtail federal funding for Medicare and Medicaid.

Reimbursement pressure: Even without major regulatory changes, health insurers continually face potential pressures related to reimbursement rates that can significantly alter their profits. Companies must secure approvals for insurance premiums from state regulators, who can be reluctant to pass on higher costs to their states' residents. Medicare and Medicaid programs also set reimbursement rates that can hurt health insurers' bottom lines.

Unforeseen medical costs: Health insurers set their monthly or annual rates based on expected medical costs, and there's always the possibility that medical costs could be much higher than anticipated. For example, some major health insurers noted modest increases in costs due to COVID-19.

Benefits of health insurance companies

The benefits of health insurance companies from an investing standpoint include:

They typically generate relatively steady revenue and cash flow.

Barriers to entry for new competitors are high.

Aging demographic trends create growth opportunities for health insurers that offer Medicare Advantage plans.

Health insurance companies often pay attractive dividends.

How to invest in health insurance stocks

Follow these steps to invest in health insurance stocks:

Open your brokerage app: Log in to your brokerage account where you handle your investments.

Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.

Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.

Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.

Submit your order: Confirm the details and submit your buy order.

Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

What to look for in health insurance stocks

There are some metrics, such as revenue and earnings growth, that you should evaluate no matter what kind of stock you're buying. There are also a few specific factors to consider when you're choosing health insurance companies on the stock market:

Revenue mix: Understanding a company's revenue mix -- how it generates most of its revenue -- can give you a better idea of its growth prospects and weaknesses. Some health insurers generate most of their revenue from Medicare Advantage, while others are more heavily focused on Medicaid or commercial markets.

Medical care ratio (MCR): Also sometimes referred to as the benefit expense ratio, medical cost ratio, medical loss ratio, or medical benefit ratio, this metric measures medical costs as a percentage of premium revenue. The higher the MCR, the less profitable the health insurer.

Diversification beyond health insurance: It's increasingly common for health insurers to diversify into other businesses (and for other businesses to diversify into health insurance). That's been the case with several of the companies on our list, especially UnitedHealth Group and CVS Health. Pay close attention to health insurers' other areas of focus since they can significantly affect a company's growth prospects and associated risks.

Best Health Insurance Stocks for 2026 and How to Invest

Key Points

1. UnitedHealth Group

Key Data Points

2. Elevance Health

Key Data Points

3. CVS Health

Key Data Points

4. Centene

Key Data Points

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Best Insurance Stocks for 2026 and How to Invest

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What Are the 11 Stock Market Sectors?

Health insurance stock FAQ

What are the best health insurance stocks?

What are the best health insurance stocks?

Are health insurance stocks risky?

Are health insurance stocks risky?

How do insurance companies make money?

How do insurance companies make money?

Are health insurance stocks a good investment?

Are health insurance stocks a good investment?

Which health insurance companies are publicly traded?

Which health insurance companies are publicly traded?

Are dividends common among health insurance stocks?

Are dividends common among health insurance stocks?

Can health insurance stocks help diversify my portfolio?

Can health insurance stocks help diversify my portfolio?

About the Author

Stocks Mentioned

Our Guides

Premium Investing Services

Health insurance stock FAQ

What are the best health insurance stocks?

What are the best health insurance stocks?

Are health insurance stocks risky?

Are health insurance stocks risky?

How do insurance companies make money?

How do insurance companies make money?

Are health insurance stocks a good investment?

Are health insurance stocks a good investment?

Which health insurance companies are publicly traded?

Which health insurance companies are publicly traded?

Are dividends common among health insurance stocks?

Are dividends common among health insurance stocks?

Can health insurance stocks help diversify my portfolio?

Can health insurance stocks help diversify my portfolio?

Top health insurance stocks for 2026

Best Financial Stocks to Buy in 2026 and How to Invest in Them

Best Insurance Stocks for 2026 and How to Invest

Best Fintech Stocks to Buy in 2026 and How to Invest in Them

What Are the 11 Stock Market Sectors?

Key Data Points

1. UnitedHealth Group

2. Elevance Health

Risks for health insurance companies

Benefits of health insurance companies

Opportunities ahead for health insurers

Related investing topics

FAQ

Key Data Points

Key Data Points

Key Data Points

3. CVS Health

4. Centene

How to invest in health insurance stocks

What to look for in health insurance stocks