Oct 21 (Reuters) – Elevance Health raised its annual profit forecast on Wednesday, as the health insurer banks on its disciplined medical cost management.
Health insurers have been navigating elevated demand for behavioral health services and specialty drugs across government-backed plans in recent years, which have driven up costs.
Elevance forecast full-year adjusted profit to be at least $29 per share, compared with its previous outlook of at least $27 per share. Analysts on average estimate an annual profit of $27.23 per share, according to data compiled by LSEG.
For the third quarter, the health insurer reported a medical loss ratio, the percentage of premiums spent on medical care, of 90.6%. Analysts, on average, had expected a ratio of 91.17%.
(Reporting by Kamal Choudhury and Sneha S K in Bengaluru; Editing by Leroy Leo)
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