UnitedHealth Group stock fell more than 8% in early trading Tuesday as the Minnesota-based health care giant reported higher medical spending during the three-month period ending Sept. 30 and updated its earnings forecast for 2025.

Across the industry, rising medical costs have been cited as a factor in premium increases, including jumps for next year in Minnesota’s markets for individual and small employer coverage.

UnitedHealth Group is now forecasting adjusted earnings for the year of $27.50 to $27.75 per share, which is the lower half of the range previously forecast.

UnitedHealth Group reported for the quarter a higher medical loss ratio — the percentage of premium dollars spent on patient care — and attributed the increase to factors including a previously disclosed reduction in Medicare funding as well as its membership mix between July and September.

During the third quarter, UnitedHealth Group saw more costs related to a cyberattack earlier this year at the company’s Change Healthcare division.

Enrollment in Medicare Advantage plans grew slightly during the quarter to 7.8 million people. Open enrollment starts today for Medicare health plans, where the company’s UnitedHealthcare health insurance business is the nation’s largest provider.

“The company’s 2025 Medicare Advantage plans will reach 96% of eligible Medicare beneficiaries,” UnitedHealth Group said in a news release Tuesday morning.

UnitedHealth Group operates the largest health insurance company in the U.S. as well as the health services business Optum, which runs outpatient medical centers, a pharmacy benefits manager and a unit for health information technology.

At the end of September, UnitedHealthcare had about 49.3 million enrollees in the U.S.

During the third quarter, UnitedHealth Group reported a profit of $6.06 billion on revenue of $100.8 billion, up 3.6% and 9% respectively over the year-ago period.

Adjusted earnings per share of $7.15 beat analyst estimates by 15 cents.

The medical loss ratio, which is a closely watched indicator of cost trends at health insurers, was 85.2% during the third quarter, up from 85.1% in the second quarter and 82.3% during the same period last year. Unexpected jumps in medical costs can eat into health insurer profits.

Figures for adjusted earnings exclude one-time factors such as the previously-announced divestiture of UnitedHealth Group’s health insurance and health care operations in Brazil.

UnitedHealth Group this spring said it had global employment of about 400,000 people, including more than 19,000 people in Minnesota.

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