This week’s newsletter is Sponsored By: Physicians Mutual
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Here is what you’ll find in this week’s newsletter!
Important links 🔗 - the best articles we found this week about the Medicare Market along with links to Jared’s recent LinkedIn posts.
Deep Dive 📚 - Q2 2026 Medicare Carrier Financials Side-By-Side
Sponsor Snapshot 🚀 - brought to you by Physicians Mutual
It’s only a 5 minute read, but it will make you 10x smarter.
Here are IMPORTANT LINKS 🔗 for the week:
CMS ending Medicare Part D subsidy program - (link)
Genomic testing nearly triples among Medicare patients, but NGS use remains low - (link)
Tillis, Colleagues Introduce Bipartisan Provider Reimbursement Stability Act to Ensure Long-Term Access to Medical Care - (link)
Final hospice payment drops from proposed amount - (link)
Medicare Coverage Granted for Veracyte’s Test for Muscle-Invasive Bladder Cancer - (link)
Medicare Supplement Broker Incentives - 2026 Q3 Update - (link)
2026 Q2 Regulatory Updates - (link)
The Medicare agent squeeze - (link)
Jared’s recent LinkedIn posts:
DEEP DIVE 📚
Q2 2026 Medicare Carrier Financials Side-By-Side
In this week’s deep dive, we are looking at publicly traded Medicare carrier Quarter 2 (“Q2”) 2026 financials side-by-side.
The insurance carriers included in this analysis are all trying to capture a piece of the growing Medicare market (along with other insurance markets), and do so profitably.
Here they are:
Alignment Healthcare - $ALHC ( ▲ 1.18% )
UnitedHealth Group - $UNH ( ▲ 1.28% )
Elevance Health - $ELV ( ▲ 3.5% )
Centene Corp. - $CNC ( ▲ 4.56% )
Humana - $HUM ( ▲ 0.46% )
Molina - $MOH ( ▲ 1.98% )
CVS - $CVS ( ▼ 5.08% )
Aside from Alignment, Centene and Molina, these carriers have both health insurance operations and healthcare services operations (providers, PBMs, pharmacies, etc.).
Here are the split of Q2 2026 revenues between these two segments for each carrier:
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Income Statement & Membership Side-By-Side
To compare and contrast the Q2 2026 results for each carrier, the Income Statement is split between “Insurance Operations” and “Healthcare Service Operations”. The consolidated statement is also displayed.
One Note: Healthcare Service Operations is different for each carrier, but generally includes providers, pharmacies, PBMs, and technology.
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Year-Over-Year (“YoY”) % Change
Here is the % change in key metrics from Q2 2025 to Q2 2026.
*nm = not meaningful; % change undefined against a negative prior-year base. Centene swung from a $(0.46)B loss to $1.2B profit.
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Current Valuation Metrics
Here are current valuation metrics for these carriers.
*nm = not meaningful
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Observations
Operating income grew year-over-year at 5 of 7 carriers. Consolidated operating profit across all 7 was up 57% YoY. Elevance (-27%) and Molina (-61%) were the two exceptions.
Only two carriers grew on every metric (revenue, membership, and operating income). Humana (+26% revenue, +17% membership, +24% operating income) and Alignment (+32% revenue, +31% membership, +85% operating income). Molina was the only carrier down on all three (-4.8%, -14%, -61%).
Loss ratios moved in different directions across the group. UNH (-270 basis points (“bps”)), Centene (-340 bps), CVS (-250 bps), and Alignment (-60 bps) improved. Elevance (+80 bps), Humana (+130 bps), and Molina (+180 bps) worsened. Humana's worsening loss ratio reflects new, less-seasoned AEP members entering the book.
Total membership grew at 3 of 7 carriers. Elevance (+1%), Humana (+17%), and Alignment (+31%) grew. UNH, Centene, CVS, and Molina declined.
UNH and CVS grew operating income while losing MA members. UNH: MA membership -9.4%, operating income +55%. CVS: MA membership -0.9%, operating income +98%.
Consolidated across all 7 carriers, revenue grew 6% and operating income grew 57% YoY, while total membership fell 1%. the group as a whole is generating more profit from a slightly smaller book, driven mostly by UNH and CVS's outsized operating income gains (+55% and +98%) rather than broad-based membership growth.
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Final Thoughts
Broadly speaking, Q2 showed meaningful improvement in Carrier financials.
In general, we continue to see the same trend we’ve been seeing the past few years. The carriers that decreased membership (and did so selectively) improved medical loss ratios and profitability.
Humana, who increased membership significantly during AEP 2026 did see an increased MLR (from 89.9% to 91.2%), but were able to improve operating profit anyway. This is a good sign for the industry in general.
All signs point to Carrier financials turning the corner for the better. But, not yet back to where they want to be.
Our “Tea Leaves” suggest that there will be another year of higher than normal plan terminations and service area reductions during AEP 2027 as Carrier’s continue to focus efforts on improving profitability over membership growth.
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SPONSOR SNAPSHOT 🚀: Physicians Mutual
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