(Huge understatement alert)…From 2023 - 2025, the health insurer industry did not fare well.
That changed this year…UnitedHealth Group and CVS saw profits increase near or above 2 billion dollars in Q2 2026 from the Q2 2025. Several other plans also enjoyed huge increases in margin - mostly driven by profits in employer-sponsored insurance.
Why? Simple = higher premiums in 2026 offset MUCH higher medical costs.
From FierceHealthcare’ Paige Minemeyer:
In 2023, 54% of health plans reported an operating loss, and that grew to 70% in 2024. The number of insurers with an operating loss then rose a second time to 73% in 2025
Why?
Higher medical costs.
Graph from HealthScape Advisors.
What does this mean for you?
The more employer healthplan costs increase, the more profit healthplans make.
You good with that?
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