The COVID pandemic has changed the face of medicine over the past year and a half. The need for health insurance is greater than ever, and health insurance companies are benefiting from that demand. Increased memberships should help to further propel stocks such as Anthem Inc. (ANTM), UnitedHealth Group Inc. (NYSE:UNH), and Molina Healthcare Inc (NYSE:MOH).With the worst global pandemic since World War I, healthcare has taken the spotlight in the past year and a half. Hundreds of thousands of people have been hospitalized in the U.S. due to COVID or required some sort of treatment, and health insurance covers these expensive bills, most Americans couldn't afford out of pocket.
The high demand for healthcare and fear of the coronavirus has led to a sharp increase in signing up for memberships. With more premiums being paid, more money lands on the balance sheets of top health insurance companies. When you add in the increasing general healthcare needs of older Americans, health insurance stocks are looking like a worthwhile investment.
This was evident in the most recent quarter, where health insurance companies performed exceedingly well. This high demand for insurance isn't expected to change anytime soon, so there is still plenty of room for gains for select health insurance companies. Anthem Inc. (ANTM), UnitedHealth Group Inc. (UNH), and Molina Healthcare Inc (MOH) are three cream of the crop health insurance stocks to consider.