Discover the best UnitedHealth stock alternatives shaping healthcare in 2025.
Sectors & Industries
September 9, 2025
Table of Contents
When most people think about healthcare stocks, UnitedHealth Group is usually the first name that comes to mind. It’s the industry giant, with its insurance arm covering millions of Americans and its Optum division shaping everything from pharmacy benefits to data analytics. But for investors, the healthcare sector is much bigger than just UnitedHealth. In fact, some of the most compelling opportunities in 2025 are coming from companies that specialize in very different corners of the system whether it’s Medicaid-focused insurers, pharmaceutical distributors, or integrated providers blending insurance with care delivery.
As 2025 unfolds, investors looking for stability, growth, or exposure to new healthcare trends have plenty of options beyond UnitedHealth. In this guide, we’ll break down some of the top alternatives that deserve a closer look.
Molina Healthcare is one of those companies that doesn’t always make headlines, but quietly plays a critical role in the U.S. healthcare system. Unlike bigger, diversified players that split their focus across everything from pharmacies to international insurance, Molina has a much tighter scope: it specializes almost entirely in government-sponsored health programs. If you’re looking at Medicaid, Medicare Advantage, or Affordable Care Act marketplace plans, chances are Molina has a strong presence there.
What makes Molina unique is its ability to operate efficiently in a space that many insurers consider challenging. Medicaid, in particular, involves serving some of the most vulnerable populations, people who are low-income, medically complex, or managing chronic conditions. Molina has built its reputation on keeping costs in check while still delivering access to care. This is one reason state governments often award it contracts, and why it has become a trusted partner in the public healthcare sector.
The company has been expanding its footprint, recently adding new Medicare Advantage service areas and introducing more Special Needs Plans designed for people who qualify for both Medicare and Medicaid. These “dual-eligible” members are often the most expensive to care for, but Molina has developed systems that make managing their health more cost-effective. At the same time, it’s leaning on digital tools and preventive care initiatives to improve health outcomes, such as programs encouraging childhood immunizations or regular screenings for women’s health.
Of course, Molina isn’t without its challenges. Much of its revenue depends directly on government reimbursement rates, so political shifts or policy changes can have an immediate impact. The end of pandemic-era Medicaid protections has also created churn in its membership, as states reevaluate who qualifies for coverage. Still, Molina’s focused approach and track record of winning contracts give it resilience.
In short, Molina Healthcare may not have the scale of a UnitedHealth or Cigna, but it fills an essential niche. It’s a company designed to serve populations many others overlook, and it does so with remarkable efficiency which is why it continues to hold its ground as a steady player in the health insurance landscape.
Medicare Advantage 2025 expansion: Molina added new SNP plans and new service areas across multiple states (e.g., MS, NE, NM) for 2025.
Molina officially closed its acquisition of ConnectiCare, bringing in approximately 140,000 members across Marketplace, Medicare, and commercial plans. While technically not a product launch, this expanded Molina’s service offerings — now enabling it to deliver insurance products under the ConnectiCare brand in Connecticut.
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If Molina is the focused, efficient operator in government healthcare programs, then Centene is its much larger cousin. Centene has grown into one of the biggest players in the Medicaid and Affordable Care Act marketplace space, and at its peak it covered more than 28 million members across the U.S. While some insurers treat these segments as secondary, Centene has built its entire business around them and in doing so, it has become a giant.
Centene’s bread and butter is Medicaid. The company partners with state governments to provide managed care for low-income individuals and families, and it has earned a reputation for aggressively bidding on and winning state contracts. That aggressive growth strategy paid off over the past decade, turning Centene into a Fortune 50 company. But it also comes with challenges. Medicaid contracts are competitive, margins are thinner than in commercial insurance, and states regularly revisit their deals. This means Centene is constantly balancing scale with profitability.
The company has also been a major force in the Affordable Care Act exchanges, where it remains one of the largest insurers. While other companies retreated from the exchanges during their early rocky years, Centene doubled down, betting that it could make the business work with careful pricing and broad participation. That bet helped it capture millions of new members and positioned it as a go-to choice for individuals buying their own insurance.
In recent years, Centene has been reshaping itself. After years of acquisitions and rapid growth, it is now in a phase of streamlining and divesting non-core businesses, improving technology systems, and tightening operations to boost profitability. One big move was exiting some international ventures that weren’t delivering results, as well as selling off specialty pharmacy businesses. Instead, Centene is sharpening its focus back on Medicaid, Medicare, and the ACA marketplaces.
Innovation for Centene isn’t about flashy new technologies, but about execution: investing in value-based care partnerships, expanding behavioral health integration, and developing programs that address social determinants of health like food insecurity and housing instability. These are the kinds of issues that affect the very populations Centene serves, and tackling them head-on not only improves patient outcomes but also helps keep costs under control.
There’s no question Centene faces volatility especially with Medicaid “redeterminations” underway, as states reassess eligibility after the pandemic. Membership numbers will swing, and competition remains fierce. But Centene’s scale, experience, and willingness to stay in markets where others walk away make it a cornerstone of the government-sponsored insurance space.
For investors comparing it to UnitedHealth, Centene is not as diversified and doesn’t have the same high-margin businesses like Optum. What it does offer is exposure to a massive market segment, Medicaid and ACA exchanges where Centene is arguably the dominant player.
Wellcare Medicare Advantage Expansion & Enhanced Benefits
Under its Wellcare brand, Centene rolled out new Medicare Advantage (MA) offerings for 2025, available in 32 states including a new expansion into Iowa. Key additions include:
“Food Is Medicine” Pilot for Hypertensive Members (Illinois)
Conversational AI “Colloquium” & Predictive Analytics Initiatives
Centene is deploying advanced AI-powered services:
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While insurers like Centene and Molina focus on providing coverage, AmerisourceBergen — recently rebranded as Cencora — sits on an entirely different but equally critical side of the healthcare system: distribution. If you’ve ever wondered how medicines actually get from the manufacturer to hospitals, pharmacies, and clinics across the country, companies like Cencora are the answer. They don’t make the drugs, but they ensure that billions of doses move through the system efficiently, reliably, and at scale.
Cencora is one of the “Big Three” pharmaceutical distributors in the United States, alongside McKesson and Cardinal Health. Collectively, these companies move more than 90% of the nation’s pharmaceuticals. Cencora alone distributes to over 100,000 locations worldwide, serving everything from retail pharmacies and physician practices to veterinary clinics. The company doesn’t just ship boxes — it handles regulatory compliance, cold chain logistics for biologics and specialty therapies, and inventory systems that keep healthcare providers stocked.
One of Cencora’s biggest growth engines has been its specialty distribution business. As modern medicine shifts toward specialty drugs, think complex biologics, cancer treatments, and gene therapies, the need for precise handling and distribution has exploded. These aren’t simple pills you toss in a bottle; they often require refrigeration, careful handling, and close tracking. Cencora has positioned itself as a leader in this space, supporting not just distribution but also services that help physicians and patients navigate prior authorizations, reimbursement, and patient assistance programs.
The company has also leaned heavily into global expansion. It’s no longer just a U.S. drug wholesaler, Cencora is building a worldwide footprint in pharmaceutical services, contract logistics, and consulting for biotech companies. The rebrand from AmerisourceBergen to Cencora in 2023 was meant to reflect that global, forward-looking identity.
Innovation here is less about shiny apps and more about infrastructure. Cencora has been investing in digital supply chain technologies to improve visibility, security, and efficiency. With drug shortages becoming a growing concern in the U.S., having resilient distribution networks is increasingly valuable. The company has also been developing data analytics tools for pharmaceutical manufacturers, helping them optimize launches of new therapies and monitor distribution performance.
Like its peers McKesson and Cardinal Health, Cencora operates on razor-thin margins — distribution is a high-volume, low-margin business. But the scale is staggering. With annual revenue north of $200 billion, even small efficiency gains can translate into significant profits. For investors, Cencora offers exposure to a part of the healthcare ecosystem that’s less about direct patient care and more about being the backbone of the pharmaceutical supply chain.
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Cardinal Health may not be a household name, but behind the scenes it’s one of the most important companies in the U.S. healthcare system. Like Cencora and McKesson, Cardinal is a pharmaceutical distributor, ensuring that millions of patients receive their medications on time. But Cardinal goes a step further than just drug distribution; it also has a major presence in medical products and devices, which sets it apart from its peers.
The core of Cardinal’s business lies in distributing pharmaceuticals to retail pharmacies, hospitals, and health systems. It is a critical link between drug manufacturers and the providers who actually administer care. In this sense, Cardinal plays a role very similar to Cencora, moving billions of dollars’ worth of medications every year through its vast logistics network. The scale is massive, and while margins are thin, the company’s efficiency and reach make it an indispensable partner in the healthcare supply chain.
Where Cardinal differentiates itself is in its medical segment, which manufactures and distributes products ranging from surgical gloves and gowns to lab supplies and patient monitoring equipment. This gives Cardinal a more diversified revenue stream than a pure-play distributor. During the COVID-19 pandemic, for instance, this part of the business was front and center, supplying hospitals with critical personal protective equipment. Even now, the company continues to invest in expanding its portfolio of medical devices, particularly in areas like wound care and surgical products.
Cardinal has also been modernizing its operations through digital supply chain innovations. With drug shortages and distribution complexities on the rise, Cardinal is building smarter inventory systems and predictive analytics to help providers avoid stockouts. It has also been investing in specialty pharmaceutical distribution, similar to Cencora, to support the growing pipeline of biologics and complex therapies.
Financially, Cardinal has faced its share of challenges, including pricing pressure in generic drugs and ongoing costs tied to opioid litigation — an issue that has affected all of the big distributors. Yet the company has remained resilient, focusing on efficiency and strengthening its role as a one-stop shop for hospitals and health systems.
What makes Cardinal compelling in comparison to a company like UnitedHealth is not overlap — because they’re in different parts of the healthcare world — but rather complementarity. Where UnitedHealth manages care and insurance, Cardinal ensures the supply chain keeps hospitals and pharmacies running. It’s a quieter role, but one that’s absolutely essential.
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McKesson is one of those companies that’s everywhere in healthcare, yet most people outside the industry barely know its name. At its core, McKesson is the largest pharmaceutical distributor in the United States, moving about one-third of all prescription drugs in the country. If you’ve ever picked up a prescription at your local pharmacy, there’s a good chance McKesson played a role in getting that medication there.
The scale here is almost hard to wrap your head around. McKesson generates more than $250 billion in annual revenue, putting it consistently near the top of the Fortune 500. The company distributes to retail pharmacies, hospitals, long-term care facilities, and physician practices, ensuring that life-saving medications reach patients reliably and on time. Like its peers, McKesson also deals with razor-thin margins, but its dominance comes from sheer scale, efficiency, and the ability to manage one of the most complex supply chains in the world.
But McKesson isn’t just about drug distribution. Over the years, it has diversified into oncology and specialty care solutions, working closely with providers who treat complex conditions like cancer. Through its U.S. Oncology Network, McKesson supports independent oncology practices with everything from drug procurement to data analytics and clinical trial access. This gives the company a unique position at the intersection of pharmaceuticals and patient care.
McKesson has also invested heavily in biopharma services, helping pharmaceutical companies bring new therapies to market. These services include clinical trial support, patient assistance programs, and logistics for complex biologics. With the rise of personalized medicine and therapies that require highly specialized distribution, McKesson’s expertise has become even more valuable.
One of the company’s standout moments came during the COVID-19 pandemic, when it was selected by the U.S. government to distribute vaccines and ancillary medical supplies. This role showcased McKesson’s capacity to operate at national scale during a crisis, reinforcing just how central it is to the healthcare system.
That said, McKesson, like other distributors, has faced challenges. The opioid epidemic brought lawsuits and financial settlements that weighed heavily on the sector. Yet despite these headwinds, the company has remained profitable and continues to expand internationally, with growing operations in Europe and Canada.
Compared to UnitedHealth, McKesson lives in a very different part of healthcare. Instead of managing insurance and care delivery, it powers the logistics engine that keeps medicine flowing. For investors looking for an alternative to UnitedHealth, McKesson represents exposure to the broader healthcare system in a way that is less about risk pools and more about supply chain dominance.
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Humana has carved out a unique position in the U.S. healthcare landscape by focusing heavily on Medicare Advantage, the private insurance plans that serve America’s seniors. While many insurers spread themselves across commercial, Medicaid, and Medicare markets, Humana has doubled down on Medicare and it’s paid off. Today, it is one of the largest providers of Medicare Advantage plans in the country, competing directly with UnitedHealth in this fast-growing segment.
At its core, Humana is a health insurance company, but what sets it apart is its strategy of tightly integrating coverage with care delivery. Over the past several years, Humana has been aggressively building out its network of primary care centers, home health services, and chronic disease management programs. The company has recognized that seniors often need more coordinated, hands-on care, and it has invested in creating models that emphasize prevention and long-term health management rather than just processing claims.
One of Humana’s biggest moves came with its expansion into home health care. Through acquisitions like Kindred at Home (later rebranded as CenterWell Home Health), Humana has become a leader in bringing care directly into patients’ homes. This is especially critical for older populations, who often face barriers to accessing traditional clinic-based care. By managing care in the home, Humana aims to improve patient outcomes, reduce hospital readmissions, and lower overall costs, a win for both patients and payers.
Humana’s CenterWell brand has become the hub of its care delivery operations. Under this umbrella, it operates primary care clinics, home health services, and pharmacy solutions tailored to seniors. These facilities aren’t just about reactive medicine — they’re designed for proactive, value-based care, with a heavy emphasis on managing chronic conditions like diabetes, heart disease, and COPD.
Financially, Humana has had to weather the same challenges as other insurers, such as rising medical costs and competitive pricing pressures. But its specialization in Medicare Advantage gives it a strong position in a market that continues to expand as the U.S. population ages. Medicare Advantage enrollment has been steadily increasing year after year, and Humana is one of the key players benefiting from that demographic shift.
What makes Humana particularly compelling compared to UnitedHealth is the clarity of its focus. While UnitedHealth is sprawling covering commercial insurance, Medicaid, and a vast provider network through Optum, Humana has sharpened its identity around serving seniors with a holistic, integrated model. For investors, that specialization can be attractive: it’s a play on the growth of Medicare Advantage and the rising demand for senior-focused healthcare solutions.
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Formerly known as Anthem, Elevance Health is one of the largest health insurers in the United States, serving more than 47 million people across its various insurance products. What makes Elevance unique is its strong presence in the Blue Cross Blue Shield network, where it operates BCBS plans in more than a dozen states. This gives it enormous regional influence and a trusted brand that resonates with consumers who value the stability and recognition of the Blue Cross name.
At its foundation, Elevance is an insurance powerhouse, offering plans across the commercial, Medicaid, and Medicare markets. But in recent years, the company has been repositioning itself to be much more than a traditional payer. With its rebrand to Elevance in 2022, the company signaled a shift toward a more holistic healthcare identity, one that integrates insurance with care delivery, data, and consumer engagement.
One of Elevance’s fastest-growing segments is its Carelon division, which encompasses its healthcare services business. Carelon provides pharmacy benefit management, behavioral health services, complex care management, and data analytics solutions. This arm of the company is Elevance’s version of UnitedHealth’s Optum, a services business designed to complement its insurance operations and help reduce costs while improving patient outcomes. Through CarelonRx, for example, Elevance manages pharmacy benefits for millions of members, negotiating with drug manufacturers and working to improve medication adherence.
Elevance has also been expanding its capabilities in digital health and value-based care. The company is using advanced analytics to identify at-risk populations, personalize care pathways, and support providers in moving away from fee-for-service models. Behavioral health has been another focus, with Elevance investing in programs to improve access to mental health care, particularly through digital platforms.
A major part of its growth strategy has been government-sponsored programs. Elevance has one of the largest Medicaid memberships in the country, serving low-income populations across multiple states. It has also grown its Medicare Advantage footprint, competing with UnitedHealth and Humana in this rapidly expanding market. These government-backed segments provide a stable and growing source of revenue, particularly as enrollment in Medicaid and Medicare continues to rise.
Of course, Elevance faces challenges. Like other insurers, it must contend with rising medical expenses, competitive pressures in Medicare Advantage, and regulatory scrutiny around its PBM business. But its sheer scale, regional dominance through Blue Cross Blue Shield, and growing diversification into services make it one of UnitedHealth’s most direct competitors.
Compared to UnitedHealth, Elevance may not have the same global reach or as large a services arm, but it has a powerful mix of insurance dominance and fast-growing healthcare services. For investors, it represents a strong alternative with a clear strategy to blend payer and provider functions, while leveraging one of the most recognizable health insurance brands in the country.
Elevance Health’s Recent Developments & New Products
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CVS Health is perhaps the clearest example of how the healthcare industry is being reshaped by vertical integration. What started decades ago as a simple pharmacy chain has now grown into a healthcare giant with its hands in almost every part of the system, insurance, pharmacy benefits, primary care, home health, and community-based services. With nearly 10,000 retail locations across the United States, CVS is not just accessible, it’s embedded into the daily lives of millions of Americans.
The company’s boldest transformation came in 2018 with its acquisition of Aetna, one of the nation’s largest health insurers. That deal effectively turned CVS into both a payer and a provider, combining insurance coverage with a vast physical footprint of retail pharmacies and clinics. This integration allows CVS to manage care more holistically, offering insurance products while also delivering point-of-care services right in the community.
But CVS didn’t stop there. In 2023, it made two more game-changing acquisitions: Oak Street Health, a primary care network focused on seniors, and Signify Health, a company specializing in in-home health evaluations and care coordination. Together, these deals gave CVS a strong foothold in the fastest-growing areas of healthcare, Medicare Advantage and home-based care while reinforcing its strategy of focusing on long-term patient relationships rather than one-off transactions.
CVS has also reimagined its retail stores into HealthHUBs, which go far beyond the traditional pharmacy counter. These locations offer wellness programs, chronic condition management, telehealth services, and preventive screenings. For patients, that means they can manage more of their healthcare needs under one roof — filling prescriptions, seeing a nurse practitioner, getting tested, and even connecting with insurance support. Few competitors can match this level of integration at the community level.
Its Caremark division remains a major profit driver, functioning as one of the largest pharmacy benefit managers (PBMs) in the U.S. Caremark negotiates with drug manufacturers, manages formularies, and oversees prescription coverage for millions of Americans. While PBMs have faced regulatory scrutiny, Caremark gives CVS the scale and bargaining power to influence drug costs — an advantage that aligns directly with its insurance business and care delivery network.
One of CVS’s strongest differentiators compared to UnitedHealth is its physical presence. UnitedHealth relies heavily on its Optum division to deliver care through clinics, data, and technology. CVS, meanwhile, leverages its unparalleled retail footprint to bring healthcare directly into neighborhoods. That accessibility combined with its insurance arm, PBM, and new home health assets, positions CVS as a full-spectrum healthcare company that can manage patients from the home to the clinic to the pharmacy counter.
The challenges are real: retail pharmacy margins are under pressure, integration of its acquisitions will be complex, and regulatory scrutiny of PBMs continues to heat up. But CVS has shown it is willing to reinvent itself, and it has the scale, reach, and ambition to remain a dominant player for years to come.
For investors looking at alternatives to UnitedHealth, CVS offers a compelling story. It’s not just an insurer, not just a pharmacy chain, and not just a care provider — it’s a hybrid that touches all of those worlds at once. In many ways, CVS represents the future of integrated healthcare, where insurance, access, and delivery are blended seamlessly into the everyday patient experience.
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Cigna has long been one of the biggest names in U.S. health insurance, but what truly sets it apart is how it has evolved into a global health services company. While many of its peers are focused largely on the domestic U.S. market, Cigna has an international footprint, serving tens of millions of people across more than 30 countries. Its mission has been to provide affordable, predictable, and simple healthcare — and it has pursued that goal by combining insurance coverage with a powerful set of healthcare services.
The most transformative shift for Cigna came in 2018 with its acquisition of Express Scripts, one of the largest pharmacy benefit managers in the country. This move not only expanded Cigna’s scale dramatically but also gave it direct control over pharmacy cost management, an increasingly critical piece of the healthcare puzzle. Today, Express Scripts sits at the heart of Cigna’s operations, managing prescription benefits for over 100 million members and leveraging data and analytics to reduce costs for employers, health plans, and individuals.
Cigna operates through two main segments: Cigna Healthcare and Evernorth Health Services. Cigna Healthcare focuses on traditional insurance offering medical, dental, disability, and vision coverage and covers tens of millions of Americans across employer-sponsored, Medicaid, and Medicare Advantage plans. Evernorth, on the other hand, represents Cigna’s services business, housing Express Scripts along with specialty pharmacy services, care management solutions, virtual health platforms, and behavioral health services. Evernorth is essentially Cigna’s answer to Optum, providing the tools and services that help manage costs, coordinate care, and support providers.
Innovation has been a clear focus for Cigna. Through Evernorth, the company has invested in digital health solutions, including virtual behavioral health therapy, chronic disease management platforms, and personalized care navigation. Its specialty pharmacy division, Accredo, plays a vital role in managing complex, high-cost medications, particularly for patients with rare diseases or chronic conditions. By controlling both the insurance and pharmacy benefit sides, Cigna has a unique ability to influence care decisions and costs.
Financially, Cigna has been strong, consistently generating revenue growth while keeping medical cost ratios competitive. It has leaned heavily into value-based care, working with providers to incentivize quality and outcomes rather than simply paying for volume. This strategy aligns with industry trends and positions Cigna as a forward-looking alternative to traditional insurance models.
Compared to UnitedHealth, Cigna is slightly narrower in terms of overall diversification, but its global presence and Evernorth’s service portfolio give it a distinct identity. Where UnitedHealth has built a vast empire blending insurance with direct care delivery, Cigna’s strength lies in marrying insurance with pharmacy and health services on a worldwide scale. For investors, that makes Cigna an intriguing alternative — one that combines steady insurance revenue with exposure to high-growth healthcare service lines.
Cigna may not have the same market cap as UnitedHealth, but its mix of insurance, pharmacy services, and international presence makes it the most direct stock alternative for investors who want something similar to UNH’s business structure.
UnitedHealth remains the king of managed care, but it’s not the only stock worth owning. From Medicaid specialists like Molina and Centene, to supply chain giants like McKesson, to integrated rivals like CVS and Cigna, there are many strong United Healthcare stock alternatives.
For investors:
Healthcare remains a defensive, resilient sector, and these stocks provide multiple ways to participate in its long-term growth.
Spotting alternatives to UnitedHealth isn’t just about scanning a list of companies — it’s about catching the moments that actually move those stocks. A Medicaid expansion here, an FDA approval there, or a billion-dollar government contract — these are the kinds of announcements that can shift share prices overnight. The challenge for most investors is that these events often get buried in news feeds, press releases, or filings that don’t make headlines until it’s too late.
That’s where LevelFields AI comes in. The platform continuously scans tens of thousands of company events every day — from earnings surprises and product launches to leadership changes and government contract wins — and flags the ones most likely to trigger a stock move. Instead of chasing the news cycle, investors get real-time alerts backed by data. Each alert includes historical win rates, typical impact periods, and suggested strategies, so you can see not just what happened, but how similar events have played out before.
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For healthcare investors, this is especially powerful. Imagine being notified the moment Centene announces a new Medicare Advantage expansion, or when Cigna’s Evernorth division rolls out a pharmacy benefit program with major employer contracts. These are exactly the catalysts that create breakouts — and they’re the types of events LevelFields tracks automatically.
By combining company-specific alerts with historical performance data, LevelFields AI takes the guesswork out of reacting to complex healthcare news. Instead of trying to interpret hundreds of headlines, you can zero in on the events that matter most — and act decisively.
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