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.

6 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 earn the bulk of their revenue from underwriting policies, and though they must maintain adequate reserves to cover expected claim payouts, they invest the remaining funds to generate additional returns.

By Keith Speights – Updated Jul 13, 2026 at 10:49 AM EST | Fact-checked by Frank Bass

Key Points

UnitedHealth Group leads global health insurance, bolstered by Medicare and acquisitions.
CVS Health merges retail and health services, offering strong dividend yields.
Centene focuses on Medicaid, expanding into Medicare and ICHRA markets for growth.

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Ticker Information Table
Name and ticker	Current price	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
UnitedHealth Group (NYSE:UNH)	$418.52	$380.1 billion	2.14%
Elevance Health (NYSE:ELV)	$390.33	$84.8 billion	1.76%
CVS Health (NYSE:CVS)	$105.91	$135.1 billion	2.51%
Centene (NYSE:CNC)	$66.61	$32.9 billion	0.00%
Cigna Group (NYSE:CI)	$297.81	$78.8 billion	2.06%
Humana (NYSE:HUM)	$407.78	$49.0 billion	0.87%

Data as of Jul 16, 2026. Showing 6 of 6 total entries.

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1. UnitedHealth Group

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NYSE: UNH

UnitedHealth Group

Today's Change

(-1.57%) $-6.67

Current Price

$418.52

Key Data Points

Market Cap

$380B

Day's Range

$414.37 - $424.11

52wk Range

$234.60 - $434.30

Volume

Avg Vol

7.2M

Dividend Yield

2.14%

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UnitedHealth Group (UNH -1.57%) 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 Medicare Advantage, Medicare supplemental plans, and Medicaid markets.

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

(-8.54%) $-36.46

Current Price

$390.33

Key Data Points

Market Cap

$85B

Day's Range

$376.16 - $395.86

52wk Range

$273.71 - $436.24

Volume

9.6

Avg Vol

1.8M

Dividend Yield

1.76%

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Although Elevance Health (ELV -8.54%) is only a fraction of UnitedHealth Group's 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 nationwide.

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

(-0.25%) $-0.27

Current Price

$105.91

Key Data Points

Market Cap

$135B

Day's Range

$103.56 - $107.94

52wk Range

$58.50 - $107.94

Volume

120.8

Avg Vol

8.3M

Gross Margin

13.88%

Dividend Yield

2.51%

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You might think of CVS Health (CVS -0.25%) 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

(-3.07%) $-2.11

Current Price

$66.61

Key Data Points

Market Cap

$33B

Day's Range

$63.20 - $67.19

52wk Range

$25.07 - $69.36

Volume

4.4M

Avg Vol

5.8M

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Centene (CNC -3.07%) focuses largely on the Medicaid market. Traditional participants (including those in the Children's Health Insurance Program and the Temporary Assistance for Needy Families program) and participants who need frequent monitoring account for more than half of the company's total membership. 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

(-1.83%) $-5.54

Current Price

$297.81

Key Data Points

Market Cap

$79B

Day's Range

$291.52 - $304.83

52wk Range

$239.51 - $315.47

Volume

2.4

Avg Vol

1.6M

Dividend Yield

2.06%

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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 +1.58%), with the deal closing on March 19, 2025.

In addition to its health insurance business, Cigna offers 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

(0.25%) $1.01

Current Price

$407.78

Key Data Points

Market Cap

$49B

Day's Range

$394.46 - $412.33

52wk Range

$163.11 - $415.00

Volume

Avg Vol

1.6M

Dividend Yield

0.87%

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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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How to buy 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. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
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.

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Benefits and risks of investing in health insurance stocks

The benefits of investing in health insurance stocks 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.

However, like all businesses, healthcare companies face risks, including economic downturns and rising competition. 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. were to implement 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 may be reluctant to pass higher costs on 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.

Methodology: How these stocks were chosen

The most important criterion for selecting these stocks was that they had a large-scale health insurance business. Some of the stocks also have other operations (CVS Health, for example, is a major pharmaceutical chain), but they still focus heavily on health insurance.

Additionally, the underlying business of each health insurance stock had to be solid. Each of the selected stocks is a competitive player in the health insurance market and has strong long-term growth prospects.

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Should you invest in health insurance stocks?

The decision to invest in health insurance stocks depends largely on your investment style and goals. Investors seeking aggressive growth will probably be better off looking elsewhere. On the other hand, more conservative investors seeking relative stability plus solid long-term prospects could find several of the top health insurance stocks attractive.

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FAQ

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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.

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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.

6 Best Health Insurance Stocks for 2026 and How to Invest