Health Insurer Stocks Are Soaring As Companies Get A Handle On Costs
In this photo, traders work under monitors displaying CVS Health Corp. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Oct. 27, 2017. CVS is the parent of Aetna, the nations third largest health insurance company. Photographer: Michael Nagle/Bloomberg © 2017 Bloomberg Finance LP Following a parade of health insurance company earnings reports this summer, stocks are rising and costs appear to be under control for now. Take UnitedHealth Group, parent of the nation‘s largest health insurer in UnitedHealthcare, reported more than $5 billion in second quarter net income. That came during a period this year when UnitedHealthcare’s medical care ratio continued to fall. “The second quarter 2026 medical care ratio was 86.7% compared to 89.4% in the second quarter 2025,” the company said of the ratio, which is the percentage of premium revenue that goes toward medical costs. “The year-over-year decrease was driven by benefit design and pricing discipline, member mix and medical cost management initiatives.” The price of UnitedHealth shares have been flirting with $400 this week, which is up more than 30% compared to a year ago. The price of shares of CVS Health, too, which owns the giant health insurer Aetna, are up









