UnitedHealth Group

UnitedHealth’s massive scale is its biggest moat. As the largest U.S. health insurer (UnitedHealthcare) plus a leading healthcare services provider (Optum), it benefits from network economies (a large insured pool and provider network), cost advantages (big data analytics in care management), and high switching costs.

For example, thousands of institutions already rely on UNH’s systems and 50M people depend on it for coverage. These entrenched positions make it hard for competitors to displace UNH. The company also holds many patents and exclusive technologies through Optum, further strengthening its long-term advantage. Regulatory barriers in healthcare (e.g.

Medicaid/Medicare systems) and the need for deep sector expertise add to the moat. Potential erosion risks (higher regulation on insurance or Medicare Advantage, or competitors copying its care-management model) exist, but the bar is high.

Overall, UNH has multiple intersecting moats due to its integrated platform and brand, warranting a high moat score.