UnitedHealth's medical costs surge in third quarter, shares drop

For the quarter, the company's medical loss ratio - the percentage of premiums spent on medical care - was 85.2%, higher than the 82.3% reported a year earlier, as well as analysts' estimate of 84.2%, according to data compiled by LSEG. Demand for healthcare services under Medicare plans - for people aged 65 years and older or those with disabilities - has also exceeded industry expectations since late last year as older adults underwent procedures they had postponed during the pandemic. The company also faced elevated medical costs as a turnover in people enrolled in Medicaid left most health insurers with more sick patients.