Oscar Vs. Cigna: Which Health Insurance Stock Is A Better Buy?

Doctor, Dentist, Dental, Clinic, Medical, Surgeon

By providing virtual health support and low-cost medical expenditures, well known U.S. insurance companies Cigna (CI) and Oscar Health (OSCR) are well-positioned to capitalize on industry tailwinds as the demand for comprehensive insurance coverage plans rises. So, let’s find out which of these stocks is a better buy now.

Cigna Corporation is a health insurance company that 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 private and public exchanges.

Oscar Health, Inc. is a technology-enabled health insurance company that offers insurance plans to individuals, families, and businesses. The company’s full stack technology platform allows it to offer personalized insights and benefits, and helps its members find quality care at affordable rates.

Health insurance companies have been upgrading their insurance policies with various premium options and to offer attractive reimbursement policies amid the pandemic-led uncertainty regarding healthcare. To capitalize on current market trends, companies have been developing insurance products that provide access to low-cost, 24/7 virtual quality doctor visits. This trend is likely to continue for the foreseeable future also.  The global health insurance market is expected to grow at a 5.5% CAGR over the next seven years to reach $3.04 trillion by 2028.

While CI’s stock has appreciated 2% over the past month, OSCR’s surged 12.9%. And in terms of their past three month’s performance, CI is a clear winner with 16.5% gains versus OSCR’s 26.2% returns. But, which of these stocks is a better pick now? Let’s find out.

Latest Movements

On May 20,  CI and OSCR announced plans to make their ‘Cigna Administered by Oscar’, a small group health insurance plan available to small businesses across 15 Arizona counties, beginning July 1. Covered employees will have access to no- cost, 24/7 virtual doctor visits, low-cost prescription coverage, behavioral health support and CI’s networks of quality physicians, specialists and hospitals. Both  companies hope this plan will generate good sales in the coming months.

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