UnitedHealth warns of cost rebound

UnitedHealth's quarterly profit breezed past Wall Street's expectations Wednesday, but what helped make it look financially fit could haunt it later.

The U.S.’ largest health insurer warned that costs would rise later this year as Americans undergo elective surgeries and other non-emergency procedures that were put off because of the pandemic.

As coronavirus cases surged in the spring, hospitals postponed elective surgeries so they could accommodate those suffering from COVID-19. Some patients canceled their appointments to avoid catching the virus.

That cut medical costs and helped UnitedHealth’s quarterly profit more than double.

Despite warning that those expenses could rise later this year and into 2021 as Americans catch up on surgeries, the company stuck to its adjusted profit forecast for the full year.

UnitedHealth shares rose in early trading Wednesday, adding to their nearly 5% gain this year.