The provision of favorable policy plans and other deals with healthcare providers have helped many health insurers generate significant returns over the past year. Furthermore, with President Biden’s commitment to improve access to Medicare and Medicaid services, insurance companies Cigna (CI) and Clover Health (CLOV) are likely to benefit significantly. But let’s find out which of these stocks is a better buy now. Read on.Cigna Corporation (NYSE:CI) provides medical and dental insurance and related products and services. The company distributes its products and services through insurance brokers and consultants, directly to employers, and through private and public exchanges.
Clover Health Investments, Corp. (CLOV) is a healthcare technology and insurance service company. Through its software platform Clover Assistant, the company provides Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO) health plans to Medicare-eligible consumers. Its plans include hospital coverage, doctor visits, and drug coverage.
The COVID-19 pandemic-driven heightened awareness around health and health care drove private health insurance companies to upgrade their policies and improve their services and plans to better serve their customers. Many companies have introduced various premium options and favorable reimbursement rates and added coverage of various diseases to their plans. Health insurers have also been writing favorable contracts with health care providers to capitalize on the growing demand.