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Health insurers saw lower medical costs during the initial phase of the pandemic, as people deferred elective medical procedures, however, widespread vaccinations have led to demand for non-COVID healthcare services normalizing.
CVS Health (NYSE:CVS) said its medical benefit ratio (MBR), the percentage of premiums paid for medical services, rose to 84.1% from 70.3% last year. A lower MBR is better for health insurers as it signals a tight rein on medical costs.
Net income attributable to the company fell to $2.78 billion, or $2.10 per share, in the second quarter ended June 30, from $2.98 billion, or $2.26 per share, a year earlier.
The company raised its adjusted profit per share outlook to $7.70 to $7.80, from $7.56 to $7.68 after it reported a 11.1% increase in quarterly revenue to $72.6 billion.
