Top health insurance stocks are soaring this year and are beating popular technology names like Nvidia (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR).
UnitedHealth Group (NYSE:UNH) has jumped by over 65% from its lowest point this year, while Humana (NYSE:HUM) is up by 142%. CVS Health (NYSE:CVS) rose to $104, up by 50% from the year-to-date low.
UNH, CVS, and HUM stocks chart | Source: TradingView
The rally is a major reversal considering that these companies have been some of the top laggards in Wall Street in the past few years. The situation at UnitedHealth escalated last year when it plunged from $595 to $250 within a few weeks. In the aftermath, the company suspended its 2025 outlook and replaced Andrew Witty as Chairman with Stephen Hemsley.
The ongoing rally in healthcare insurance companies is likely because the Donald Trump administration increased the payments to insurers under the Medicare Advantage plans. It hiked the payments by 2.48%, equivalent to $13 billion, higher than the proposed 0.09%.
