Elevance Health on Tuesday beat Wall Street estimates for third-quarter profit as the health insurer managed to keep medical costs in check.

Shares of Elevance Health jumped 5% after earnings report. UnitedHealth also advanced 1.7% in premarket trading.

On an adjusted basis, the company reported a profit of $6.03 per share, compared with the average of analysts' estimates of $4.93 per share, as per data compiled by LSEG.

Elevance in July flagged elevated medical costs in its individual plans that conform to the Affordable Care Act, also known as Obamacare, and its Medicaid plans for low-income people.

For the quarter, Elevance reported a medical loss ratio, the percentage of premiums spent on medical care, of 91.3%, lower than analysts' estimates of 91.73%.

The company said its third-quarter medical costs were elevated "but expected".