Insurers see positive results in managing health costs in Q2
The health insurance industry weathered a rough 2025, and the turnaround for some companies through the midpoint has surprised even Wall Street analysts.
In the second quarter of 2026, UnitedHealth Group and CVS Health emerged as the most profitable health insurance companies, reporting $5.5 billion and $3 billion in profit, respectively. UnitedHealth Group's performance surpassed Wall Street analysts' expectations, with its Q2 profit rising from $3.4 billion in the same quarter last year.
CVS Health also outperformed analyst estimates, with profits increasing from $2.8 billion in the first half of 2025 to $5.9 billion by the midpoint of 2026. Despite cost pressures affecting the broader insurance industry, UnitedHealth Group and CVS Health made significant operational improvements, particularly in Medicare Advantage and Aetna.
However, both companies faced headwinds from Caremark, CVS's pharmacy benefit manager. Medicaid emerged as a key concern, with insurers predicting negative margins in the future. While some insurers, like Centene, reported positive results in managing Medicaid costs, enrollment declines and work requirements posed challenges. Humana also showed improvement, though it maintained cautious guidance amid ongoing litigation over star ratings.
Analysts expressed cautious optimism about the industry's prospects, particularly as states implement work requirements and Medicaid plans adjust under the new rules.
Written by urgent.news from Fierce Healthcare's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
