12 Best Health Insurance Stocks to Buy in 2025

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7. Humana Inc. (NYSE:HUM)

Number of Hedge Fund Holders: 60

Humana Inc. (NYSE:HUM) is one of the largest health insurance providers in the US. It offers health insurance and medical plans and serves people with Medicare and Medicaid plans, families, individuals, and military service personnel. According to hedge funds, Humana Inc. (NYSE:HUM) is one of the best health insurance stocks to buy in 2025.

The company is strategically investing in the business to reduce costs, improve overall efficiency, and enhance health outcomes. In the Q3 2024 earnings call, Humana Inc.’s (NYSE:HUM) management pointed out that the company is making investments in technology and implementing new use cases for artificial intelligence (AI). The company made improvements to its plan finder capability. Humana Inc. (NYSE:HUM) also recently launched a generative AI tool that helps the care management team spend less time on post-call documentation to improve efficiency. The company is also actively working to enhance its Medicare Advantage offerings to improve member satisfaction and retention.

PGIM Jennison Health Sciences Fund discussed Humana Inc. (NYSE:HUM) in its third-quarter 2024 investor letter. The letter noted that Humana Inc. (NYSE:HUM) is one of the biggest providers of Medicare Advantage plans, which is the fastest-growing segment of the US health insurance market. The company’s strategy revolves around lowering costs and improving healthcare for seniors. The fund believes that Humana Inc. (NYSE:HUM) is well-positioned to benefit from the rise in demand for private Medicare plans, which are becoming more popular because of the aging population in the US.

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