(Reuters) -UnitedHealth Group reported a quarterly profit above analysts’ estimates on Friday on lower-than-feared costs, weeks after the industry bellwether flagged rising medical costs due to an increase in non-urgent surgeries and outpatient visits.
The company posted an adjusted profit of $6.14 per share for the second quarter ended June 30, above analysts’ expectations of $5.99, according to Refinitiv IBES data.
Some health insurers have noted a spurt in recent months in the demand for outpatient services and elective surgeries such as hip and knee replacements, which patients had delayed due to COVID-related restrictions and a shortage of hospital staff.
The increased demand has led to industry bellwether UnitedHealth and smaller rival Humana warning of a jump in their medical costs for this year.
UnitedHealth’s medical loss ratio – the percentage of spend on claims compared to premiums collected – was 83.2%, compared to analysts’ expectations of 83.37%.
(Reporting by Bhanvi Satija and Raghav Mahobe in Bengaluru; Editing by Pooja Desai)
