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Best Health Insurance Stocks to Buy in 2023

Investing in companies that offer essential products and services can be a smart wealth-building strategy. Like it or not, health insurance ranks as one of the most important necessities for Americans today.

What are the top health insurance stocks to watch? And, what do you need to know before investing in them? As the major health insurers might say, “We’ve got you covered.”

Health insurance document, stethoscope, and bills.

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Top health insurance stocks for 2023

Here are four publicly traded health insurance companies and one exchange-traded fund (ETF) likely to perform well this year:

1. UnitedHealth Group

UnitedHealth Group (UNH -0.53%) ranks as the biggest health insurer in the world by far. Its UnitedHealthcare business unit offers health plans for employers and individuals and is also a major player in the market for Medicare Advantage, Medicare supplemental plans, and Medicaid.

The company’s Optum business segment provides information- and technology-enabled health services, including OptumRx pharmacy benefits management (PBM) services. While UnitedHealthcare generates more than three-fourths of the company’s total revenue, Optum is the bigger growth driver for UnitedHealth Group.

Optum could soon grow even larger. It plans to acquire home health provider LHC Group (NASDAQ:LHCG) for $5.4 billion this year. Optum already owns primary care and ambulatory surgery center facilities. The move into home health is a natural next step. However, the deal must first be approved by regulators.

2. Anthem

Although Anthem (ANTM -1.14%) is only a fraction of the size of UnitedHealth Group in terms of market capitalization, it’s still one of the largest health insurers. Anthem operates Blue Cross and/or Blue Shield plans in 14 states but is licensed to sell health insurance throughout the country.

It competes in the same arenas as UnitedHealth Group, with offerings that include employer-sponsored and individual health plans, Medicare Advantage, Medicare

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