© Reuters. UnitedHealth Group’s headquarters building is seen in Minnetonka, Minnesota, U.S. in this handout picture taken in 2019. UnitedHealth Group/Handout via REUTERS/File Photo
(Reuters) – UnitedHealth (NYSE:) on Friday reported better-than-expected profit for the fourth quarter even as high demand for non-urgent medical procedures drove up costs for the healthcare conglomerate.
Health insurers like UnitedHealth and Humana (NYSE:) have experienced an increase in medical costs in 2023 due to more elective surgeries, especially among older patients who returned to clinics and hospitals for procedures delayed by the pandemic.
The company posted an adjusted profit of $6.16 per share for the fourth quarter, compared with analysts’ average estimate of $5.98, according to LSEG data.
UnitedHealth’s quarterly medical loss ratio, the percentage of spend on claims compared with premiums collected, was 85%, above the 82.8% reported last year.
UnitedHealth affirmed that it expects the 2024 medical loss ratio to be in the range of 83.5% to 84.5%, signaling that costs are expected to remain high.
Shares of the company fell 1.5% in premarket trading.
