Major health insurers show signs of recovery, but second quarter remains key

Major U.S. health insurers are starting the year on firmer footing after several quarters of pressure from higher medical costs. Companies including UnitedHealth, Elevance, Cigna, and Humana reported stronger firstquarter results, and some raised their outlooks for 2026. Analysts said part of the improvement reflects seasonal factors and tighter cost controls, including more conservative pricing, benefit changes, and exits from less profitable markets. Lower medical loss ratios also suggested that some insurers were managing expenses better than expected. Even so, observers caution that firstquarter data can be incomplete because many medical claims are still being processed. That makes the second quarter a more important test of whether cost trends are truly stabilizing and whether insurers have priced coverage appropriately for the rest of the year.