12 Best Health Insurance Stocks to Buy in 2025

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5. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 63

CVS Health Corporation (NYSE:CVS) is an American healthcare company that provides health insurance products and services through Aetna. The company also owns many other brands, including CVS Pharmacy, a retail pharmacy chain. Aetna offers a wide range of health plan options, including commercial coverage plans, Affordable Care Act (ACA) plans, Medicaid plans, Medicare plans, and vision and dental plans. It serves employer groups, individuals, and families. CVS Health Corporation (NYSE:CVS) ranks among the best health insurance stocks to buy in 2025 according to hedge funds.

The company is focused on expanding its healthcare offerings and driving innovation for Aetna’s self-insured customers. CVS Health Corporation (NYSE:CVS) recently introduced Simple Pay for its commercial customers. This differentiated offering provides greater price certainty before a visit or treatment. This makes quality healthcare simpler and more affordable for both members and employers. Additionally, in December 2024, CVS Health Corporation (NYSE:CVS) reported that Aetna is expanding the functionality of its health app to include Spanish language capabilities for all eligible health plan members. This will allow Aetna to better serve diverse populations.

The company finalized an enterprise-wide restructuring plan in the third quarter of 2024 to streamline and simplify the organization, enhance efficiency and lower costs. CVS Health Corporation (NYSE:CVS) is closing some of its retail pharmacy stores and optimizing its corporate workforce optimization. The company expects to close about 270 stores in 2025. CVS Health Corporation (NYSE:CVS) is also discontinuing certain non-core assets as it prioritizes long-term growth.

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