12 Best Health Insurance Stocks to Buy

Published October 17, 2023 at 11:05 am EDT Updated September 7, 2026 at 12:05 pm EDT

In this article, we list down 12 of the best health insurance stocks to buy.

Amidst a backdrop of economic uncertainty worldwide, the healthcare industry has shown impressive resilience. Over time, the demand for healthcare goods and services has proven to be relatively stable. This resilience of the healthcare sector was particularly evident during the equity downturn of 2022, where, for example, the Health Care Select Sector SPDR Fund greatly outperformed the Nasdaq, S&P 500, and Dow Jones. BlackRock, Inc. (NYSE:BLK)’s data indicates that healthcare stocks exhibited 23% less volatility compared to the overall market in the past year. Additionally, throughout the last seven recessions, the healthcare sector consistently outperformed the broader market by an average margin of 10%. Moreover, during the past six recessions, the industry experienced an average earnings growth of 21%.

The healthcare sector stands as a robust sanctuary during economic downturns, given that personal well-being is a non-negotiable priority for most individuals, irrespective of financial constraints. The demand for healthcare remains steadfast, evidenced by the fact that as of 2023, one in three adults globally grapple with chronic conditions such as heart disease, cancer, and diabetes. Concurrently, approximately one in four individuals is projected to encounter a form of mental health disorder during their lifetime. Deloitte, in this regard, estimates an economic loss of $16.3 trillion over a 20-year period due to mental health issues, underscoring the significant impact on the global economy.

Rising healthcare expenses in the nation have rendered it nearly impossible to bear the costs independently, highlighting the vital role of health insurance. In 2021, private health insurance accounted for a substantial portion of the $4.26 trillion spent on healthcare, surpassing Medicare and Medicaid, with a coverage worth $1.21 trillion. Out-of-pocket payments for healthcare amounted to just $433 billion. Across the board, over 300 million Americans had some degree of health insurance coverage in 2022, marking a 40% rise since 1990. As of 2023, the US health insurance exchanges, established under the Affordable Care Act in 2014, are celebrating their tenth year of operation. Over this decade, the individual market has remained dynamic, witnessing shifts in insurer involvement, pricing, and plan offerings on an annual basis. Global research and consultancy firm McKinsey states that consumer engagement notably surged by 25% between 2020 and 2022, reaching around 16 million participants. This increase aligned with the elongated enrollment periods and improved subsidies introduced by the American Rescue Plan Act of 2021, later prolonged through 2025 by the Inflation Reduction Act of 2022.

The global health insurance industry stands to experience substantial growth in the future. Projections indicate that the global health insurance market is anticipated to achieve a Compound Annual Growth Rate (CAGR) of 9.9% from 2022 to 2030, as outlined by Straits Research. By 2030, this growth is expected to propel the market to a value of $5.28 trillion. In that same vein, some of the best health insurance stocks in the industry include UnitedHealth Group Incorporated (NYSE:UNH), CVS Health Corporation (NYSE:CVS), and Elevance Health, Inc. (NYSE:ELV), among others listed below.

Photo by martha-dominguez-de-gouveia on Unsplash

Our Methodology

To compile our list of the best health insurance stocks to buy, we scoured through Insider Monkey’s Q2 2023 database to identify the leaders in the health insurance industry based on hedge fund sentiment. The following companies, ranked according to the number of hedge funds that hold their shares, all offer health insurance services within the United States, and/or internationally.

12. Globe Life Inc. (NYSE:GL)

Number of Hedge Fund Holders: 29

Globe Life Inc. (NYSE:GL) is a financial services company headquartered in Texas, offering a range of insurance coverage options. The company specializes in supplemental health insurance products, including cancer insurance, ICU insurance, critical illness coverage, and hospital insurance. Notably, Globe Life Inc. provides Medicare supplemental insurance plans that assist in covering expenses like deductibles, co-insurance, co-payments, and cost-sharing for outpatient hospital services.

In a bid to expand its healthcare business, Globe Life Inc. completed its acquisition of Evry Health, a business-to-business health insurance company based in Dallas, Texas, on October 16.

Cumulatively, 29 of the 910 hedge funds part of Insider Monkey’s Q2 2023 database had invested in Globe Life Inc., up from 24 in the previous quarter.

Much like UnitedHealth Group Incorporated, CVS Health Corporation, and Elevance Health, Inc., Globe Life Inc. ranks as one of the best health insurance stocks to invest in.

11. Molina Healthcare, Inc. (NYSE:MOH)

Number of Hedge Fund Holders: 38

Molina Healthcare, Inc. (NYSE:MOH) is a managed care company based in Long Beach, California, United States. The company offers health insurance to individuals through government programs like Medicaid and Medicare.

Molina Healthcare, Inc. announced its GAAP earnings per diluted share of $5.35 and adjusted earnings per diluted share of $5.65 for the second quarter of 2023. As of June 30, 2023, and factoring in the early effects of Medicaid redeterminations, the company catered to about 5.2 million members.

In Q2 2023, Molina Healthcare, Inc.’s shares were held by 38 hedge funds in Q1, compared to 41 funds in the previous quarter. These were valued at $711.9 million. With a stake valued at $427.7 million, Henry Ellenbogen’s Durable Capital Partners was the company’s largest shareholder for the quarter.

Scout Investments mentioned Molina Healthcare, Inc. in its third-quarter 2022 investor letter. Here is what it said:

“Molina Healthcare, Inc. also performed well as sentiment toward health maintenance organizations improved, both as a relatively defensive investment during uncertain times, and as the bear case on the stock was partially debunked with an extension of expanded enrollment for government health insurance programs.”

10. MetLife, Inc. (NYSE:MET)

Number of Hedge Fund Holders: 40

The Metropolitan Life Insurance Company, better known as MetLife Inc. (NYSE:MET), is among the largest global providers of insurance, annuities, and employee benefit programs, with more than 90 million customers in over 60 countries.

On October 10, MetLife Inc. declared a $0.52 per share quarterly dividend, the same as the previous dividend amount, which will be distributed to shareholders on December 14, of record on November 9. The company’s dividend yield on October 16 stood at 3.28%.

As of Q2 2023, 40 hedge funds were long MetLife, Inc. with collective stakes of $1.17 billion in the insurance giant. Richard S. Pzena’s Pzena Investment Management is MetLife, Inc.’s largest investor, owning a $261.9 million stake through 4.63 million shares.

9. Chubb Limited (NYSE:CB)

Number of Hedge Fund Holders: 50

Chubb Limited (NYSE: CB) is a multinational insurance corporation providing a diverse array of insurance and reinsurance offerings to individuals, businesses, and various entities worldwide. On August 10, the company announced a quarterly dividend of $0.86 per share, maintaining its consistent dividend track record. The company has steadily increased its dividends for the past three decades. As of October 16, the stock boasts a dividend yield of 1.61%.

Insider Monkey’s database of Q2 2023 indicated that 50 funds owned stakes in Chubb Limited in Q2 2023, growing from 45 in the previous quarter. The consolidated value of these stakes is over $1.73 billion. With over 1.5 million shares, Millennium Management was the company’s leading stakeholder in Q2.

8. Centene Corporation (NYSE:CNC)

Number of Hedge Fund Holders: 57

Centene Corporation (NYSE:CNC), headquartered in St. Louis, Missouri, is a publicly traded managed care firm serving as an intermediary for both government-sponsored and privately insured healthcare programs. The company primarily focuses on the Medicaid market, with a significant proportion of its membership consisting of traditional participants, including those in programs like Children’s Health Insurance Program and Temporary Assistance for Needy Families, who require regular monitoring. Medicaid plans account for nearly two-thirds of Centene Corporation’s total revenue, making it a vital revenue stream. However, the company is experiencing even faster revenue growth in its Medicare segment.

On July 28, Centene Corporation revealed its Q2 non-GAAP earnings per share of $2.10 and reported a revenue of $37.61 billion. The revenue surpassed market estimates by $1.07 billion, demonstrating robust performance, and the earnings outperformed Street expectations by $0.05.

According to Insider Monkey’s second quarter database, 57 hedge funds were bullish on Centene Corporation. This number was 61 in the previous quarter. Quentin Koffey’s Politan Capital had the largest position in the stock, with 12.13 million shares worth $818.65 million.

Oakmark Funds made the following comment about Centene Corporation in its Q3 2023 investor letter:

“Centene Corporation (NYSE:CNC) is one of the largest health insurers in the U.S. The company specializes in three major government-sponsored programs: Medicaid, Marketplace and Medicare Advantage. Each of these benefits from long-term secular tailwinds. In Medicaid, states are steadily outsourcing their programs to managed care companies, like Centene, as it helps states reduce costs and improve care quality. Indeed, Managed Medicaid penetration has increased from 25% of total Medicaid spend in 2010 to 60% today, and we expect further gains over time. In Marketplace, growth is driven by the trend toward more individuals buying health insurance. Centene holds the #1 market share in both of these programs and is well positioned to capitalize on their continued growth. The stock trades for 10x consensus 2024 EPS, but this doesn’t tell the whole story. Past missteps in Centene’s Medicare business will result in that segment losing $0.80 per share next year. We believe Centene can turn Medicare around and generate positive earnings in the next few years. This could increase EPS by more than $1 per share and reduce the P/E ratio to just 8.5x. We think that’s good value for a business that generates healthy returns on capital and is capable of growing EPS at a low double-digit rate.”

7. The Progressive Corporation (NYSE:PGR)

Number of Hedge Fund Holders: 69

The Progressive Corporation (NYSE:PGR) is a prominent American insurance company that offers automobile and health insurance solutions. By the latter part of 2022, Progressive had achieved the status of being the largest motor insurance carrier in the United States. The company’s origins trace back to 1937 when it was co-founded by Jack Green and Joseph M. Lewis. Its headquarters are located in Mayfield Village, Ohio.

During July of 2023, The Progressive Corporation experienced a stock price surge after J.P. Morgan analyst Jimmy Bhullar upgraded the rating from Neutral to Overweight. This upgrade happened despite The Progressive Corporation reporting recent disappointing financial results. Bhullar emphasized that despite subpar margins over the past two years, he holds an optimistic long-term outlook for the personal auto market, considering it a structurally superior business compared to commercial lines or reinsurance.

As of the end of the first quarter of 2023, 64 hedge funds tracked by Insider Monkey were long The Progressive Corporation.

The London Company Large Cap Strategy made the following comment about The Progressive Corporation in its second quarter 2023 investor letter:

“The Progressive Corporation (NYSE:PGR) – PGR underperformed during Q2 due to concerns about additional price hikes needed to maintain its targeted profitability ratio. PGR continues to increase auto policies in force, but recent costs were higher than expected. To combat weaker than expected margins, PGR is reducing advertising spending and increasing prices on insurance. Looking ahead, we believe PGR remains well positioned reflecting its more flexible pricing platform and tech solutions that monitor and price for distracted driving. While near-term costs were higher than expected, PGR has a great track record of profitability and conservative underwriting philosophy.”

6. Humana Inc. (NYSE:HUM)

Number of Hedge Fund Holders: 70

Humana Inc. (NYSE:HUM) is a company focused on health and well-being, providing healthcare benefits to medical and specialty members. The range of services includes fully-insured medical and specialty health insurance benefits such as vision, dental, supplemental health benefits, and administrative services only (ASO products) for individuals and employer groups. The company also offers healthcare services catering to retired and active duty military personnel and their dependents. These services encompass pharmacy solutions, clinical care services, provider services, as well as predictive modeling and informatics services.

On August 8, after an as-expected quarter and an upward revision in guidance, Bernstein chose to increase its price target for Humana Inc. from $568 per share to $599 per share. This adjustment highlights Bernstein’s optimistic reevaluation of Humana Inc.’s potential stock value, indicating a more positive outlook for the company’s market performance. While raising the price target, Bernstein retains its “Market Perform” rating.

By the end of this year’s second quarter, 70 among the 910 hedge funds part of Insider Monkey’s research had bought Humana Inc.’s shares. Rajiv Jain’s GQG Partners is its biggest stakeholder since it owns $1.3 billion worth of shares.

Vltava Fund made the following comment about Humana Inc. in its Q3 2023 investor letter:

“A new position in the portfolio is the US health insurer Elevance Health. This sector is quite familiar to us. In fact, we also have shares of another health insurer, Humana Inc. (NYSE:HUM), in our portfolio, which we first bought in 2009. The sector has been very attractive over the long term and its structure favours big players, which both Humana and Elevance Health are. Because each of these two companies also has some specific risk, we decided to increase our investment in the sector by acquiring this second position. Both companies are high-growth in terms of profitability and we expect their above-average growth to continue for quite some time.”

Humana Inc. joins the ranks of UnitedHealth Group Incorporated, CVS Health Corporation, and Elevance Health, Inc. as one of the best health insurance stocks investors should keep on their radars.

5. HCA Healthcare, Inc. (NYSE:HCA)

Number of Hedge Fund Holders: 66

Established in 1968, HCA Healthcare, Inc. (NYSE:HCA) is a prominent healthcare provider renowned for its extensive network. The company possesses ownership and operational control over 182 hospitals and around 2,300 ambulatory care sites, which encompass surgery centers, free-standing emergency rooms, urgent care centers, and physician clinics. These facilities are spread across 20 states in the United States and also extend into the United Kingdom.

On July 27, HCA Healthcare, Inc. unveiled its financial outcomes for Q2 2023, showcasing robust performance. The company witnessed a 7% year-on-year revenue increase, amounting to $15.9 billion, and a 2% year-on-year rise in net income, totaling $1.4 billion. Notably, its normalized EPS for the quarter stood at $4.29, surpassing consensus estimates by $0.05.

The number of hedge funds tracked by Insider Monkey owning stakes in HCA Healthcare, Inc. grew to 66 in Q2 2023, from 65 in the previous quarter. The collective value of these stakes is roughly $2.47 billion.

4. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 66

CVS Health Corporation is a healthcare enterprise headquartered in the United States, overseeing an extensive network of retail pharmacies and clinics throughout the country. The corporation manages various brands, including CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager, and Aetna, a health insurance provider.

In a recent disclosure, CVS Health Corporation unveiled its Q2 outcomes, highlighting an adjusted EPS of $2.21 for the quarter, surpassing projections by $0.09. Additionally, the revenue for the period surged by a notable 10.3% compared to the prior year, amounting to $88.92 billion, exceeding estimates by $2.39 billion. The company currently offers a dividend of $0.60, boasting a yield of 3.37% as of October 16.

At the conclusion of the second quarter in 2023, Insider Monkey’s database, which tracks 943 hedge funds, reported that 66 hedge funds held stakes in CVS Health Corporation. The primary stakeholder was John Overdeck and David Siegel’s Two Sigma Advisors, possessing a significant stake in the company valued at $398.9 million.

Coho Partners Relative Value Equity Fund made the following comment about CVS Health Corporation in its second quarter 2023 investor letter:

“In December of 2017, CVS Health Corporation (NYSE:CVS) agreed to buy Aetna, which broadened its offering by entering the managed care business. CVS has been moving its portfolio to a more value-based outcome model, and Aetna was a major move in that direction. We were willing to accept the leverage that came with the deal because CVS has a very cash generative model, and we anticipated the free cash flow would enable the company to de-lever fairly quickly.

By mid-2022, CVS was in a position to use the free cash flow that had been going to debt repayment to do bolt-on deals to further prepare for the value-based outcome model and/or return more cash to shareholders in the form of higher dividends or share repurchases. However, CVS lost a “star” in its largest Medicare plan in late 2022 and this will adversely impact earnings in 2024. This was a surprise and disappointment to us, but management should be able to regain the “star” in the back half of 2023, which will then give the company a nice tailwind in 2025…” (Click here to read the full text)

3. The Cigna Group (NYSE:CI)

Number of Hedge Fund Holders: 74

The Cigna Group (NYSE:CI), along with its subsidiary companies, specializes in providing insurance and related products and services within the United States. Additionally, it offers pharmacy benefits, home delivery pharmacy, and specialty pharmacy distribution.

The worldwide health services firm has consistently increased its dividends by an average annual rate of 160.6%. At present, The Cigna Group provides a quarterly dividend of $1.23 per share, yielding 1.58% as of the record date on October 16.

As of the end of the second quarter of 2023, 74 hedge funds out of the 910 funds in Insider Monkey’s database had stakes in Cigna Corporation. Larry Robbins’s Glenview Capital is the company’s largest stakeholder, with 2.07 million shares worth $579.59 million.

2. Elevance Health, Inc. (NYSE:ELV)

Number of Hedge Fund Holders: 82

Formerly recognized as Anthem, Inc., Elevance Health, Inc. operates as a health benefits company within the United States through its subsidiaries. The company manages Blue Cross and/or Blue Shield plans in 14 states and holds licenses to sell health insurance nationwide. Elevance Health, Inc. competes in a similar space as UnitedHealth Group Incorporated, providing a range of offerings such as employer-sponsored and individual health plans, Medicare Advantage, Medicare supplements, and Medicaid. Additionally, the company oversees the IngenioRx PBM, which constitutes just under 20% of the company’s total revenue.

At the end of the June quarter of 2023, 82 hedge funds in Insider Monkey’s database reported having stakes in Elevance Health, Inc., up from 81 in the preceding quarter. Their collective stake value is over $5.33 billion. The biggest stakeholder of Elevance Health, Inc. was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $902 million stake in the company.

ClearBridge Large Cap Value Strategy made the following comment about Elevance Health, Inc. in its Q3 2023 investor letter:

“Our health care positioning also fared well. We continue to maintain an overweight position to managed care companies via long-term holdings in UnitedHealth and Elevance Health, Inc. (NYSE:ELV), as we believe the short cycle nature of their insurance franchises allows them to reprice their book of business in a relatively short time frame, even if health care costs come in higher than previously anticipated.”

1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 111

UnitedHealth Group Incorporated, based in Minnetonka, Minnesota, is a prominent American multinational corporation specializing in managed healthcare and insurance services, operating as a for-profit entity. The corporation is structured into four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. Ranked as the best health insurance stock on our list, UnitedHealth Group Incorporated declared a quarterly dividend of $1.88 per share on August 23, in line with the prior payout. The dividend was disbursed on September 19 to shareholders of record as of September 11.

Insider Monkey’s database of 910 hedge funds shows that 111 hedge funds reported owning stakes in UnitedHealth Group Incorporated. The most significant stakeholder of the firm during this period was Rajiv Jain’s GQG Partners which owns a $2.4 billion stake in the company.

Mairs & Power Growth Fund made the following comment about UnitedHealth Group Incorporated in its second quarter 2023 investor letter:

“Notable detractors to performance in the first half were US Bank (USB), Charles Schwab (SCHW), and UnitedHealth Group Incorporated (NYSE:UNH), which were down 22.09%, 31.65%, and 8.65%, respectively. Another detractor from relative performance was UnitedHealth Group, which was down 8.65%. However, we have a positive long-term view of the company, headquartered in Minnesota, and especially its potential when it comes to harnessing its vast amounts of patient data via AI. Additionally, its Optum unit, which provides technology and data-driven care delivery, has AI-enabled tools that can help healthcare providers drive more efficient and accurate care to patients.