UnitedHealth surpasses profit expectations for the quarter due to lower costs than anticipated.

(Reuters) -UnitedHealth Group reported a quarterly profit above analysts’ estimates on Friday, as expenses came in lower than feared after the industry bellwether flagged rising medical costs due to an increase in non-urgent surgeries and outpatient visits, sending shares up about 3% in premarket trading.

The beat comes despite UnitedHealth flagging in June a spurt in the demand for outpatient services and elective surgeries such as hip and knee replacements in recent months, which patients had delayed due to COVID-related restrictions and a shortage of hospital staff.

UnitedHealth has said it was witnessing a higher demand for payouts over medical care in April, May and early June, as Medicare-eligible adults became more comfortable visiting doctors’ offices again, after COVID risks receded.

UnitedHealth’s medical loss ratio – the percentage of spend on claims compared to premiums collected – was 83.2%, compared to analysts’ expectations of 83.4%.

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.

The company now expects to earn an adjusted profit of $24.70 per share to $25 per share, compared with $24.50 to $25 previously. Analysts were expecting a profit of $24.82 per share, according to Refinitiv IBES data.

Health insurers faced fluctuating medical costs during the pandemic as hospitalizations initially rose due to waves of infections, and then declined early last year.

Lower spending on elective surgeries had softened the blow from the higher costs associated with testing and treating COVID.

(Reporting by Bhanvi Satija and Raghav Mahobe in Bengaluru; Editing by Pooja Desai)

The Oklahoma Department of Homeland Security carries out a major child pornography sting.

One suspect faces 20 years in prison, in addition to paying restitution to his victims.

Secret Service cleans up White House Marijuana and Cocaine, while Bob Iger tells Hollywood workers to eat cake

This week’s NATO summit in Lithuania focused heavily on Ukraine and the bloc’s ongoing conflict with Russia.

The Internet is still ablaze as the mystery woman, caught on video on an American Airlines flight who began yelling that a fellow passenger was “not real!”

WASHINGTON (Reuters) – A U.S. federal court rejected the Federal Trade Commission’s request that it order Microsoft to temporarily hold off on…

By Sarita Chaganti Singh and Aditi Shah NEW DELHI (Reuters) -China’s BYD Co has submitted a $1 billion investment proposal to build…

SEOUL (Reuters) – Tesla began selling its Model Y rear-wheel drive car on Friday in South Korea at a price of 56.99…

KUALA LUMPUR (Reuters) – Malaysian Prime Minister Anwar Ibrahim said on Friday he held a call with billionaire Elon Musk to discuss…