Oscar Health and managed care providers fell Wednesday following Elevance Health's second-quarter results.
Elevance Health exceeded profit and revenue expectations and raised its full-year guidance. However, the company reported its benefit expense ratio climbed to 89.7%.
This metric measures the percentage of premiums paid for medical care. The increase signals higher-than-anticipated medical cost trends, particularly in government plans.
Investors fear rising costs represent an industry-wide issue. These trends may pressure future profitability for all health insurers.