Payers ranked by medical cost ratios | Q2 2023

Medical cost ratios across six major payers rose an average of just under 1 percent year over year, according to companies’ second-quarter earnings reports. 

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Several payers warned that medical costs are on the rise, as more older adults seek outpatient procedures and behavioral health utilization is increasing. 

Medical cost ratios indicate what portion of premium revenue payers spend on paying medical claims. 

CVS Health had the largest year-over-year increase in its medical cost ratio, rising 3.5 percentage points. 

Elevance Health was the only payer with a decreasing ratio. 

Here’s how six major payers stacked up: 

Centene: 87 percent
Up 0.3 percentage points year over year 

Elevance Health: 86.4 percent 
Down 0.7 percentage points year -over year

Humana: 86.3 percent
Up 0.5 percentage points year over year 

CVS Health/Aetna: 86.2 percent
Up 3.5 percentage points year over year

UnitedHealthcare: 83.2 percent
Up 1.7 percentage points year over year

Cigna: 81.2 percent
Up 0.5 percentage points year over year

At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 17–19 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.

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