20 Biggest Health Insurance Companies in the US
In this article, we discuss the 20 biggest health insurance companies in the US. To skip our industry analysis you can go directly to the 5 Biggest Health Insurance Companies in the US.
Healthcare is one of the largest industries in the United States. The US healthcare segment accounts for nearly 20% of the country’s GDP. The Centers for Medicare & Medicaid Services reports that the industry is expected to grow at an average of 5.1% between 2021 and 2030 and reach approximately $7 trillion. Among the US states, South Dakota has the highest healthcare costs at $11,736 per person and the lowest per-person healthcare costs were recorded in New Mexico. We also discussed other factors causing high healthcare costs in our article entitled 20 American Cities With the Lowest Uninsured Rates.
The high healthcare costs have resulted in almost every US citizen opting for health insurance. We previously reported that close to 92% of the US population is covered by either private or public health insurance in 2021. Between 2020 and 2021, the insured population in the US grew by almost 900,000. According to Grand View Research, the US health insurance market size was approximately $1.6 trillion in 2022, and between 2023 and 2030, it is expected to grow by a compound annual growth rate of 6.08%.
Health Insurance Industry Latest Updates
The health insurance premium costs remained stagnant for four years till 2022. In 2023, the premiums experienced a median increase of 4% for the lowest-price silver plan. According to a survey, the global healthcare benefit costs could reach their highest in 15 years in 2023. The survey also expects that the cost would increase over the next three years and estimates a 10% increase in 2023. CEO of Domestic Health and Health Services at Cigna International Markets, Jerome Droesh said:
"Inflationary trends will see an increase in costs. Many insurance companies will be required to shift their business models to increase adoption of disruptive technologies such as cloud computing and applied AI.”
On June 14, the largest health insurance company in the world, UnitedHealth Group Incorporated (NYSE:UNH) said that the company’s costs were increasing due to a rise in surgeries among older adults, especially knee and hip. This hint of a drop in the health insurance company’s profit sent the company’s stock in a decline, along with a few other Medicare-focused insurers. UnitedHealth Group Incorporated (NYSE:UNH)’s executives said that now that the pandemic has waned out, older people over the age of 65 are opting for procedures that they had pushed off for a while. On June 16, Wells Fargo analysts noted that the managed healthcare stocks have a history of rallying back. Since the initial comments by UnitedHealth Group Incorporated (NYSE:UNH), its stock has gained over 3.7%.
UBS Group AG (NYSE:UBS) predicts that health insurance costs could rise by $250 million to $500 million in 2023 alone due to pickleball-related injuries. Pickleball is currently the fastest-growing sport in the United States. In 2021, there were 4.8 million pickleball players in the US. That number has now reached to 22.3 million.
As of June 28, the three largest health insurance companies in the US are UnitedHealth Group Incorporated (NYSE:UNH), Elevance Health, Inc. (NYSE:ELV), and The Cigna Group (NYSE:CI).
Photo by martha-dominguez-de-gouveia on Unsplash
Our Methodology
We chose these companies based on their market capitalization and listed them in ascending order of this metric. We skipped the companies that only offered reinsurance or the companies that did not have significant enough operations in the health insurance segment. All of these companies have significant operations in the US. Some of these companies are headquartered outside of the US but nonetheless have operations in the country.
20 Biggest Health Insurance Companies in the US
20. Kemper Corporation (NYSE:KMPR)
Market Capitalization: $3.15 billion
Kemper Corporation (NYSE:KMPR) is a diversified American insurance company that also offers accident and health insurance. The company provides health insurance for first-time cancer diagnoses and first-occurrence heart attacks. Kemper Corporation (NYSE:KMPR) is headquartered in Chicago, Illinois, and was founded in 1990.
UnitedHealth Group Incorporated (NYSE:UNH), Elevance Health, Inc. (NYSE:ELV), and The Cigna Group (NYSE:CI) are some of the biggest healthcare companies in the US along with Kemper Corporation (NYSE:KMPR).
19. GoHealth, Inc. (NASDAQ:GOCO)
Market Capitalization: $4.21 billion
GoHealth, Inc. (GOCO) is a government-approved insurance exchange. The company offers several Medicare plans including Medicare Advantage and Medigap. GoHealth, Inc. (GOCO) has partnered with over 300 insurance carriers and has enrolled over 5 million US citizens since 2001. According to the company, it assisted over 2 million people in 2022.
GoHealth, Inc. (GOCO) is based in Illinois but has offices across several US states and also has one in Slovakia.
18. AXIS Capital Holdings Limited (NYSE:AXS)
Market Capitalization: $4.57 billion
AXIS Capital Holdings Limited (NYSE:AXS) offers several insurance and reinsurance products including specialty accident and health insurance. According to the company, their health and accident insurance is suitable for the sports, leisure, and entertainment industry along with educational institutions, police, and fire department. AXIS Capital Holdings Limited (NYSE:AXS) has also tailored some coverage options for individuals in the Esports industry.
AXIS Capital Holdings Limited (NYSE:AXS) operates in Bermuda, the United States, Canada, Europe, and Singapore.
17. Kinsale Capital Group, Inc. (NYSE:KNSL)
Market Capitalization: $8.48 billion
Kinsale Capital Group, Inc. (NYSE:KNSL) is an insurance company operating in the United States. The company’s Allied Health segment offers long-term care coverage, miscellaneous healthcare, and social service risks. Kinsale Capital Group, Inc. (NYSE:KNSL) health insurance division also offers an insurance marketplace for medical practitioners that are ineligible to buy insurance from usual marketplaces. It offers coverage to non-standard chiropractors and podiatrists, dentists, physicians, and group practitioners.
Kinsale Capital Group, Inc. (NYSE:KNSL) was founded in 2009 and it is based in Virginia.
16. Unum Group (NYSE:UNM)
Market Capitalization: $9.26 billion
Unum Group (NYSE:UNM) is an American insurance company. According to the firm, it has 39 million customers worldwide and serves 57% of the Fortune 100 companies or their subsidiaries. Unum Group (NYSE:UNM)’s subsidiary, Colonial Life & Accident Insurance Company, offers disability, cancer, accident, life, critical illness, and hospital confinement insurance coverage. Unum Group (NYSE:UNM) bought the company in 1993 for $571 million.
15. Everest Re Group, Ltd. (NYSE:RE)
Market Capitalization: $14.66 billion
Everest Re Group, Ltd. (NYSE:RE) is a Bermuda-based insurance and reinsurance company. The company operates in over 100 countries across the globe, including the US. Everest Re Group, Ltd. (NYSE:RE)’s health insurance segment includes medical stop loss, short-term medical, pro sports disability, managed care, and group personal accident.
In the first quarter of 2023, out of 41 hedge funds that held a stake in Everest Re Group, Ltd. (NYSE:RE), Egerton Capital Limited held the most prominent stake with 406,646 shares worth $145.587 million.
Around mid-May, Everest Re Group, Ltd. (NYSE:RE) announced that it is changing its name and ticker symbol to Everest Group, Ltd. and EG, respectively.
14. Globe Life Inc. (NYSE:GL)
Market Capitalization: $10.34 billion
Globe Life Inc. (NYSE:GL) is a Texas-based financial services company with several insurance coverage options. The company provides supplemental health insurance products such as cancer insurance, ICU insurance, critical illness, and hospital insurance. Globe Life Inc. (NYSE:GL)’s Medicare supplemental insurance plans cover expenses such as deductibles, co-insurance, co-payments, and cost-sharing for outpatient hospital services. These costs are not covered by Medicare.
13. W. R. Berkley Corporation (NYSE:WRB)
Market Capitalization: $15.31 billion
W. R. Berkley Corporation (NYSE:WRB) is a commercial insurance and reinsurance company. Its health insurance segment provides insurance products for healthcare businesses which include hospitals, nursing homes, and managed healthcare facilities. W. R. Berkley Corporation (NYSE:WRB) is also on our list of best property and casualty insurance stocks to buy.
12. Principal Financial Group, Inc. (NASDAQ:PFG)
Market Capitalization: $18.08 billion
Principal Financial Group, Inc. (NASDAQ:PFG) is an American global financial services and insurance company. In the United States, it provides dental and vision insurance and individual disability insurance. Principal Financial Group, Inc. (NASDAQ:PFG) was founded in 1879 and is headquartered in Iowa.
In the first quarter of 2022, Balyasny Asset Management purchased 625,035 shares of Principal Financial Group, Inc. (NASDAQ:PFG), worth $46.45 million, and was the most significant stakeholder of the company.
11. Arch Capital Group Ltd. (NASDAQ:ACGL)
Market Capitalization: $26.5 billion
Arch Capital Group Ltd. (NASDAQ:ACGL) is an American insurance company. It was formed in Delaware in 1995 and is currently headquartered in Bermuda. Arch Capital Group Ltd. (NASDAQ:ACGL) operates in Bermuda, the USA, Canada, Europe, Australia, and Hong Kong. In the US, the company provides accident, disability scholastic, travel, and property insurance along with health and management liability.
10. The Allstate Corporation (NYSE:ALL)
Market Capitalization: $28.55 billion
The Allstate Corporation (NYSE:ALL) is an Illinois-based insurance company and with a market cap of $28.55 billion. It is the 10th biggest health insurance company in the US. The company covers several types of insurance including health. The company’s health insurance coverage options include short-term medical, critical illness, accident, dental, and Medicare insurance. The Allstate Corporation (NYSE:ALL) also offers self-funded group health plans and supplemental health coverage for small to medium-sized businesses.
9. Sun Life Financial Inc. (NYSE:SLF)
Market Capitalization: $30.14 billion
Sun Life Financial Inc. (NYSE:SLF) is a Canadian insurance company founded in 1865. The company offers dental, disability, health, and life insurance. Sun Life Financial Inc. (NYSE:SLF) also provides asset management, pension plans, and other financial services. The company primarily offers its services in North America and Asia. The US headquarters of the company is located in Norfolk County, Massachusetts.
On June 1, 2022, Sun Life Financial Inc. (NYSE:SLF) acquired one of the largest providers of Medicaid dental benefits in the U.S., Dentaquest, for $2.475 billion.
8. Centene Corporation (NYSE:CNC)
Market Capitalization: $36.51 billion
Centene Corporation (NYSE:CNC) is a Missouri-based managed care company. It manages Medicare and Medicare and assists TRICARE beneficiaries in the US West. Centene Corporation (NYSE:CNC) also offers privately insured healthcare programs. The company exited its pharmacy benefit management business in May 2022 after divesting its subsidiaries Magellan Rx and PANTHERx Rare for a combined $2.8 billion.
7. American International Group, Inc. (NYSE:AIG)
Market Capitalization: $40.85 billion
American International Group, Inc. (NYSE:AIG) is a New-York based finance and insurance company. The company offers general, health, travel, vehicle, and life insurance along with others. American International Group, Inc. (NYSE:AIG) also provides investment management and mortgage loans.
In the first quarter of 2021, 46 hedge funds held a stake in American International Group, Inc. (NYSE:AIG) and their combined stake value was nearly $2 billion.
6. MetLife, Inc. (NYSE:MET)
Market Capitalization: $42.10 billion
MetLife, Inc. (NYSE:MET) offers insurance, annuities, and employee benefit programs and is one of the largest insurance companies in the world. It serves over 90 million customers across 60 countries. MetLife, Inc. (NYSE:MET)’s health coverage includes life, medical, accident, dental, vision insurance, and disability coverage.
On June 14, MetLife, Inc. (NYSE:MET) partnered with Lyra Health to provide employees with mental health services after submitting disability or absence claims.
MetLife, Inc. (NYSE:MET) is the sixth largest healthcare company in the US while UnitedHealth Group Incorporated (NYSE:UNH), Elevance Health, Inc. (NYSE:ELV), and The Cigna Group (NYSE:CI) remain the top three.
Click to continue reading and see the 5 Biggest Health Insurance Companies in the US.
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Disclosure. None. 20 Biggest Health Insurance Companies in the US is originally published on Insider Monkey.