Anthem's shares fell in premarket trading July 24 as the health insurer missed estimates on its medical cost ratio, which measures how much revenue goes toward members' medical claims, according to Barron's.
Wall Street estimated a medical cost ratio of 85.8 percent for Anthem, according to FactSet data cited by Barron's. However, Anthem reported a medical cost ratio of 86.7 percent.
Anthem said the missed medical cost ratio was due to, among other things, "medical cost experience in the Medicaid business."
Year to date, Anthem shares are up 15 percent and are outperforming the S&P 500 Managed Health Care subsector. Anthem ended the second quarter with a $1.1 billion profit, up 8.1 percent year over year.
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