10 Largest Health Insurance Companies In America

Most of the 10 largest health insurance companies in America are publicly-traded and have registered solid returns over the past five years. The US health insurance industry is one of the largest in the world with almost 84% of Americans being covered by at least some kind of public or private health insurance. While a majority of Americans obtain insurance through their employers a large part of Americans receive health coverage through a public health insurance program. Medicare, Medicaid and military health insurance accounts for a majority of the public health coverage.

Employer-sponsored health insurance is paid by companies on behalf of their employees as part of an employee benefit package. The U.S. Census Bureau estimates that more than 60% Americans receive private health insurance through employers. The employer generally contributes about 85% of the insurance premium for their employees while the employee has to pony up the rest. The advantage of an employer insurance plan is that group insurance leads to lower costs due to economies of scale.

While all major US corporations still give health insurance to their workers, this trend has reversed over the last decade. The main reason is the rising costs of healthcare which has risen much faster than overall wages and inflation. The 10 largest health insurance companies in America have managed to keep growing revenues due to industry consolidation. You might also want to know about 11 biggest insurance companies in the world.

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The US health insurance market is controlled by large health insurance companies after a wave of consolidation took place in the industry leading to over 400 mergers and acquisitions. According to the American Medical Insurance, the largest insurer controls at least 30% of the market in 90% of markets. This oligopoly like structure gives a lot of pricing power to the insurers as the companies/individuals have limited choice. As the U.S. population becomes older, demand for healthcare insurance is only going to increase. There is also a lot of uncertainty regarding how healthcare industry will look like with Donald Trump looking to overturn the Affordable Care Act (ACA) of 2010 which had been championed by Barack Obama. We have listed down the the 10 largest health insurance companies in America based on their 2015 revenues.

10. Triple-S Management Corporation

Triple-S Management Corporation (NYSE:GTS) is a Puerto Rico-based American health insurance provider that started operations in 1959. The company hasa  substantial market share in Puerto Rico providing insurance services to approximately 1.2 million citizens. It reported revenues of $2.9 billion for 2015 with profits of $52 million. Its stock has performed poorly compared to its peers, losing 10% over the last five years.

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9. Magellan Health

Magellan Health Inc. (NASDAQ:MGLN) is an Arizona-based healthcare insurance provider that started its operations in 1969. The stock performance has been returned 51% over the last five years and currently has a market value of $1.7 billion. It showed sales of $4.6 billion in 2015 with a net income of $31 million. The company has three segments – Healthcare, Pharmacy Management and Corporate.

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8. Molina Healthcare

Molina Healthcare, Inc. (NYSE:MOH) was started in 1980 by David Molina who worked as a physician in Long Beach, California. Molina Healthcare, Inc.(NYSE:MOH) operates through three segments: Health Plans, Molina Medicaid Solutions and Other. With revenues of $14 billion in 2015, the company showed net profits of $143 million. Its coverage area consists of 10 US states and Puerto Rico and it focuses of providing Medicaid-related solutions for low-income families and individuals.

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7. WellCare Health Plans

WellCare Health Plans, Inc. (NYSE:WCG) is a Florida-based health insurer that was founded in 1985. The company’s 6,000 employees manage over 4 million subscribers. The company’s primary focus is on public healthcare plans such as Medicaid and Medicare. It has revenues of $13.9 billion in 2015 and has a market value of $6.5 billion. Since late 2012, WellCare has bought out a number of smaller Medicare & Medicaid providers to expand its geographical coverage.

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6. Centene Corp

We are continuing our list of the largest health insurance companies in America with the Centene Corp (NYSE:CNC) that operates through two segments: Managed Care segment and the Specialty Services segment. The company has been in the healthcare business since 1984 and reported $22.7 billion in annual revenues in 2015. It has over 13,000 employees and is part of the Fortune 500 company list with a market value of $10.9 billion. The stock has performed quite well giving a return of over 180% in the last 5 years. In 2016, the company merged with HealthNet with the total transaction value of $6 billion. It has got 11 million subscribers after its merger with HealthNet.

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5. Cigna Corporation

Cigna Corporation (NYSE:CI) offers health, life and accident insurance products primarily in Asia, Europe and the United States. This American health insurer has a market capitalization of $37 billion and its stock has surged by around 200% in the last five years. Cigna was formed by the 1982 merger of the Connecticut General Life Insurance Company (CG) and INA Corporation. It had revenues of $38 billion in 2015.

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4. Humana Inc

The fourth on our list of largest health insurance companies in America is the Humana Inc. (NYSE:HUM), a US managed health care corporation that was founded 55 years ago. Its stock has doubled over the last five years. It registered revenues of $54 billion in 2015 with a net profit of $1.27 billion. In 2015, Aetna announced that it would acquire Humana for $37 billion in cash and stock, however a Federal judge cancelled the merger. The two companies are appealing the ruling and under the new Trump administration this merger has a higher chance of going through.

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3. Aetna Inc

Aetna Inc. (NYSE:AET) is a Fortune 100 company that was founded in 1853. Headquartered in Hartford, Connecticut, U.S., Aetna reported $60 billion in revenues for 2015 with operating income of $2.7 billion. The company offers health care, dental, pharmacy, group life, disability, and long-term care insurance plans. The company has a market value of $41 billion and has given a return of over 170% in the last 5 years. Like other health insurers, this stock has also performed extremely well for investors and has handily beaten the S&P 500.

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2. Anthem Inc

The second place on our list of largest health insurance companies in America goes to the Anthem Inc. (NYSE:ANTM) that was founded in the 1944. The company offers a a number of healthcare managed plans for employers, individuals, Medicaid and Medicare markets. It is the largest for-profit managed health care company in the Blue Cross and Blue Shield Association. The company reported revenues of $79 billion for 2015, with net profits in excess of $2 billion. In late 2004, Anthem and WellPoint merged, with the combined company taking the WellPoint name, which was changed in 2014.

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1. UnitedHealth Group Inc.

The number one on our list of largest health insurance companies in America is th UnitedHealth Group Inc. (NYSE:UNH) with a market value $155 billion and is based out of Minnetonka, Minnesota. The company offers products and services through two operating businesses, UnitedHealthcare and Optum. Optum is a new business brand of UnitedHealth Group and operating business through Business Process Outsourcing (BPO) services. UnitedHealth serves approximately 70 million individuals throughout the United States and generated sales of over $157 billion in 2015.

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Disclosure: None