Elevance Health earnings fell short of Wall Street projections in the latest sign of how medical expenses are squeezing insurers’ government businesses, a result that punished shares across the sector.

On Thursday, Elevance Health disclosed in its third quarter earnings release that its medical loss ratio — the amount of premium revenue it spent on medical care — was markedly higher than Wall Street analysts expected, sending its stock price into a tailspin.

The results show a worsening outlook for health insurers that for years have relied on government programs for growth.