As the broader stock market continues to grow, health insurance stocks often go unnoticed. To a certain extent, it is understandable given that the world we live in today is driven by groundbreaking technologies and innovations. That said, the global pandemic has also reminded us of the importance of health care. Hence, people may be paying more attention to their health insurance plans.
Despite many losing their jobs due to the pandemic, rates of health insurance coverage continue to grow. For instance, we saw increased medical enrollments by Anthem Inc (NYSE: ANTM) during its second quarter. There were an additional 1.9 million members year-over-year and 820 thousand members in the second quarter.
Moreover, early data from the CDC National Health Interview Survey showed that an estimate of 1.6 million more Americans gained coverage in 2020. Among Americans of all age groups, the number of people with public health plan coverage grew by 2.1 million to 123.5 million last year. With all these in mind, do you have a list of the top health insurance stocks in the stock market today?Best Health Insurance Stocks To Buy[Or Sell] Today
- UnitedHealth Group Inc (NYSE: UNH)
- CVS Health Corp (NYSE: CVS)
- Cigna Corp (NYSE: CI)
- Molina Healthcare, Inc (NYSE: MOH)
First, we will be looking at the diversified health care company, UnitedHealth. The company offers various health plans that include health insurance plans, Medicare, Medicaid, short insurance plans, and additional coverage for dental, vision, and supplemental plans. It is noteworthy that the company has the largest market cap in the health care industry. UNH stock has risen over 20% since the start of the year.
Just last week, the company was selected by the state of Nevada as one of its four managed care organizations to administer its Medicaid program in the counties of Clark and Washoe. This will be effective January 1, 2022. It will be a four-year base contract that includes the state’s Temporary Assistance for Needy Families, Children’s Health Insurance Program, and Medicaid expansion programs. The company has served the state of Nevada for over 24 years and this extension is a testament to its excellent services throughout the period.
UnitedHealth Foundation has also established a three-year, $3.3 million grant partnership with the North Olympic Healthcare Network serving Clallam County. It will help to improve access to care with the goal of improving behavioral health for children and adults in the Port Angeles area. With behavioral and mental challenges on the rise due to the pandemic, this is an area of care that requires more attention. All things considered, would you be adding UNH stock to your portfolio?Source: TD Ameritrade TOS
Read MoreCVS Health Corp
Next, we have CVS Health. Essentially, it is a leading health services company that operates through four segments. Namely, Pharmacy Services, Retail/LTC, Health Care Benefits, and Corporate/Other. The company’s Health Care Benefits segment offers a range of health insurance products and related services. CVS stock has been on a bullish momentum over the past year, seeing gains of over 40% within the period.
There were some exciting developments by the company lately. In August, it announced an innovative health care solution, Aetna Virtual Primary Care. It is designed to revolutionize the primary care experience and make it easier and more accessible for people to get their health services. Eligible members will have access to a panel of board-certified physicians and coordinated care based on their health needs. With this now available, consumers will be able to balance the demands of work and health more effectively.
Furthermore, CVS has also opened its first MinuteClinic in Washington. MinuteClinic is a walk-in medical clinic located inside CVS Pharmacy stores. It aims to provide high-quality, affordable care for patients aged 18 and older. Not to mention, there will be expanded night and weekend hours with no appointments necessary. By making its services more accessible, CVS would be able to reach more patients that require medical care. Given these exciting developments, would you consider investing in CVS stock?Source: TD Ameritrade TOS Cigna Corp
Cigna Corporation is a health services company that offers medical, dental insurance, and related products and services. The company has more than 180 million customer and patient relationships in more than 30 countries and jurisdictions. It operates with the goal of providing the right services and solutions at the right time to address the diverse health needs of its customers.
As mentioned in previous tech articles, the health care industry is also leveraging technology to provide better care for its patients. For instance, the company launched the Cigna StressWaves Test last month. The company partnered with Ellipsis Health, a medical tech developer and leader in AI health biomarkers to develop this tool. This is a free online tool that analyses acoustic and semantic voice patterns to evaluate stress levels. Hence, with mental health issues on the rise, this simple solution could be a lifesaver for some.
It is also noteworthy that Hartford HealthCare has reached a multi-year agreement with the company. This ensures that Cigna customers will have continued access to its hospitals, facilities, and providers for quality care at predictable, affordable rates. All things considered, would CI stock still be a buy for you?Source: TD Ameritrade TOS Molina Healthcare, Inc
To sum it up, we will be looking at Molina Healthcare. In detail, the company offers Medicaid-related solutions for low-income families and individuals. It also assists government agencies in their administration of the Medicaid program. MOH stock is yet another health insurance stock that has been steadily on the rise. It has risen over 45% within the past year.
The state of Nevada has also selected Molina Healthcare to administer its Medicaid program. Similar to UnitedHealth, Molina is awarded a four-year contract, with a potential two-year extension. The company will also participate in the state-based Affordable Care Act Exchange. It is a privilege for the company to be among the four selected to advance the state’s goals of improving care for its Medicaid members.
During its second quarter, the company posted a premium revenue of $6.6 billion, representing an increase of 51% year-over-year. This reflects the increased organic membership in Medicaid, Medicare, and Marketplace. Despite the challenges caused by the pandemic, the company is still able to produce solid margin performances. With all these in mind, do you believe that MOH stock will have more room to run?Source: TD Ameritrade TOS