Health insurance stocks

Hospital and medical service plan companies, the managed-care insurers, collect premiums from employers, individuals and government programs such as Medicare Advantage and Medicaid, and pay members' medical costs. They make money when premiums exceed claims and administrative costs, and several also own pharmacy-benefit, care-delivery and data businesses.

6 covered companies · Reviewed

How health insurance companies make money

Commercial insurance

Employer-sponsored and individual health plans, either fully insured or administered for self-funded employers for a fee.

Government programs

Medicare Advantage, Medicare Part D and Medicaid managed care, where payments are set by federal and state rules; Humana, Centene and Molina are heavily weighted here.

Health services

Pharmacy benefit management, clinics and data services, such as UnitedHealth's Optum and Cigna's Evernorth.

What drives health insurance stocks

  • ◆Medical cost trends and utilization
  • ◆Medicare Advantage payment rates and star ratings
  • ◆Medicaid enrollment and state rate setting
  • ◆Pricing discipline in commercial plans
  • ◆Regulation of pharmacy benefit managers

Key risks

  • ◆Medical costs rising faster than premiums
  • ◆Government payment-rate cuts or audit changes
  • ◆Star-rating declines that reduce bonus payments
  • ◆Political and legal scrutiny of pharmacy benefit managers

KPIs to track

Medical loss ratio (medical care ratio)
Medical costs as a share of premiums; higher means lower underwriting margin.
Membership by program
Enrollment in commercial, Medicare and Medicaid plans.
Days claims payable
Reserve strength relative to claims being paid.
Operating margin by segment
Separates insurance from services businesses.

Fiscal calendars in this group

Managed-care companies report on a calendar year and reprice many plans annually, so the first quarter often looks different from the rest of the year as new benefit designs and enrollment take effect.

Fiscal year end (SEC)Companies
December 31CI, CNC, ELV, HUM, MOH, UNH

Health insurance stocks: company profiles and annual filings

UnitedHealth Group Incorporated (UNH)

Company research page

UnitedHealth is the largest US health insurer and, through Optum, a major provider of pharmacy benefits, health services, and data analytics. Its combined insurance-and-services model gives it wide reach across the healthcare system.

Fiscal year end in SEC snapshot
December 31
Annual report period end
2025-12-31
10-K filed 2026-03-02

Humana Inc. (HUM)

Humana provides health insurance with a focus on Medicare Advantage plans for older Americans.

Fiscal year end in SEC snapshot
December 31
Annual report period end
2025-12-31
10-K filed 2026-02-19

The Cigna Group (CI)

Cigna provides health insurance and operates the Evernorth pharmacy-benefits and health-services business.

Fiscal year end in SEC snapshot
December 31
Annual report period end
2025-12-31
10-K filed 2026-02-26

Sources and method

Industry codes and annual filing references come from the SEC submissions snapshot linked to each issuer in our company catalog (snapshot ; newer filings may exist). Only groups with at least three distinct issuers, business descriptions and annual filing links are included. Multiple share classes of one issuer count as one company. This is a coverage directory, not a complete industry census or a ranking of investments.

The industry explanation above is editorial and general; it is not drawn from any single company's filing. Company-specific figures are on each stock page with a link to the filing they come from.

SEC Standard Industrial Classification code list explains the classification system. Read our research methodology or browse all industry directories.

What do the hospital & medical service plans numbers leave unanswered?

Financials describe the business. The next question is which assumptions an investment thesis depends on. Explore the member reports below for analysis of catalysts, risks, and what would change the view. $39/month or $249/year.

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