(Reuters) -Humana’s second-quarter profit beat Wall Street estimates on Wednesday, buoyed by a lesser increase in medical costs than expected.
Medical costs for insurers, especially those with Medicare plans, have surged in the first half of this year as older adults resumed making appointments for medical procedures such as hip and knee replacements they had delayed during the pandemic.
Humana reported a medical loss ratio – the percentage of its spend on claims over the premiums it collects – of 86.3% for the quarter, up from 85.8% a year earlier but lower than the average of analysts’ estimates of 86.50%, according to Refinitiv data.
Excluding one-off items, the health insurer earned a profit of $8.94 per share in the quarter ended June 30, higher than analysts’ average estimate of $8.82 per share, according to Refinitiv data.
(Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri)
