What are the best health insurance stocks?

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

Are health insurance stocks risky?

Like all businesses, health insurers face risks, including economic downturns and rising competition. However, health insurance companies also face several unique risks, including regulatory changes, reimbursement pressures, and unforeseen medical costs.

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: 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.

By Keith Speights – Updated Mar 16, 2026 at 3:33 PM EST | Fact-checked by Frank Bass

Key Points

Investing in health insurers with essential services like UnitedHealth can be a solid choice.
Look for companies that show steady growth and revenue like CVS Health and Elevance Health.
Consider firms with diversification and tech advancements to mitigate industry risks.

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Ticker Information Table
Name and ticker	Current price	Market cap	Dividend yield
UnitedHealth Group (NYSE:UNH)	$367.10	$330.3 billion	2.43%
Elevance Health (NYSE:ELV)	$374.71	$80.1 billion	1.86%
CVS Health (NYSE:CVS)	$86.86	$103.4 billion	3.30%
Centene (NYSE:CNC)	$55.33	$26.2 billion	0.00%
Cigna Group (NYSE:CI)	$281.98	$72.7 billion	2.21%
Humana (NYSE:HUM)	$246.33	$28.8 billion	1.48%

Data as of May 6, 2026. Showing 6 of 6 tickers.

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1. UnitedHealth Group

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NYSE: UNH

UnitedHealth Group

Today's Change

(0.89%) $3.23

Current Price

$367.10

Key Data Points

Market Cap

$330B

Day's Range

$358.38 - $368.55

52wk Range

$234.60 - $395.52

Volume

297K

Avg Vol

8.7M

Dividend Yield

2.43%

UnitedHealth Group (UNH +0.94%) 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.

Acquisitions have driven some of UnitedHealth Group's recent growth. 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

(1.53%) $5.64

Current Price

$374.71

Key Data Points

Market Cap

$80B

Day's Range

$369.37 - $377.87

52wk Range

$273.71 - $424.24

Volume

1.2M

Avg Vol

1.9M

Dividend Yield

1.86%

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Although Elevance Health (ELV +1.53%) 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, offering 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

(7.65%) $6.17

Current Price

$86.86

Key Data Points

Market Cap

$103B

Day's Range

$85.12 - $88.63

52wk Range

$58.35 - $88.63

Volume

15M

Avg Vol

7.8M

Gross Margin

13.78%

Dividend Yield

3.30%

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You might think of CVS Health (CVS +7.65%) 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 also a top health insurer.

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

(4.44%) $2.35

Current Price

$55.33

Key Data Points

Market Cap

$26B

Day's Range

$52.00 - $55.67

52wk Range

$25.07 - $64.15

Volume

Avg Vol

6.6M

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Centene (CNC +4.44%) focuses largely on the Medicaid market. Traditional participants (including those in the Children's Health Insurance Program and Temporary Assistance for Needy Families program) and participants who need frequent monitoring make up more than half of the company's total membership base. Centene's Medicaid plans generate almost half of the company's total revenue.

Medicaid remains a solid business for Centene. However, its Medicare and commercial insurance businesses are growing much faster.

Centene is particularly targeting two areas for future growth -- individuals eligible for both Medicare and Medicaid (known as dual eligibles) and the Individual Coverage Health Reimbursement Arrangement (ICHRA), an alternative to group insurance.

5. Cigna Group

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NYSE: CI

Cigna Group

Today's Change

(2.29%) $6.32

Current Price

$281.98

Key Data Points

Market Cap

$73B

Day's Range

$275.76 - $284.82

52wk Range

$239.51 - $338.89

Volume

2.6M

Avg Vol

1.7M

Dividend Yield

2.21%

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The Cigna Group ranks among the largest health insurers with its Cigna Healthcare segment. This unit provides health insurance to employers and individuals in the U.S. and markets international healthcare solutions for employees of multinational organizations and individuals who travel globally.

Cigna also served the Medicare market in the past. However, the company sold its Medicare operations to Health Care Services Corporation (HCSG +1.61%), with the deal closing on March 19, 2025.

In addition to its health insurance business, Cigna offers pharmacy benefits management (PBM) services and specialty and care services through its Evernorth Health Services segment. This unit generates roughly 60% of Cigna's total earnings.

6. Humana

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NYSE: HUM

Humana

Today's Change

(2.84%) $6.80

Current Price

$246.33

Key Data Points

Market Cap

$29B

Day's Range

$241.06 - $251.78

52wk Range

$163.11 - $315.35

Volume

1.5M

Avg Vol

1.9M

Dividend Yield

1.48%

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Humana markets health insurance products for Medicare (including Medicare Advantage) and Medicaid members, as well as employers and individuals. Like several of its peers, the company also operates a PBM business.

Also, like some of its major rivals, Human has expanded into additional areas. Its CenterWell segment offers pharmacy (excluding PBM), primary care, and home care.

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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.

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 known 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.

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 pressures on 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 reported modest cost increases 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 demographics create growth opportunities for health insurers offering Medicare Advantage plans.

Health insurance companies often pay attractive dividends.

Industry trends and outlook

Key trends affecting the health insurance industry include:

Increased adoption of artificial intelligence (AI)

Increased mergers and acquisitions volume

Increased use of GLP-1 drugs

Aging demographics in the U.S.

Over the near term, the outlook for health insurers is negative. This bleak picture is due largely to increasing medical costs, the prospects for paltry Medicare Advantage rate increases, and the expiration of enhanced Affordable Care Act premium subsidies. However, the longer-term outlook for the health insurance industry could be much brighter, with the possibility that AI and other technological advances could help reduce healthcare costs.

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

5. Cigna Group

Key Data Points

6. Humana

Key Data Points

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Health insurance stock FAQ

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Health insurance stock FAQ

What are the best health insurance stocks?

Are health insurance stocks risky?

How do insurance companies make money?

Are health insurance stocks a good investment?

Which health insurance companies are publicly traded?

Are dividends common among health insurance stocks?

Can health insurance stocks help diversify my portfolio?

1. UnitedHealth Group

2. Elevance Health

How to invest in health insurance stocks

What to look for in health insurance stocks

Risks for health insurance companies

Benefits of health insurance companies

Industry trends and outlook

Opportunities ahead for health insurers

Related investing topics

FAQ

Top health insurance stocks for 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

3. CVS Health

4. Centene

5. Cigna Group

6. Humana