Elevance Health surprised Wall Street with a rare, late-year guidance cut Thursday after a jump in Medicaid costs marred its third quarter.Shares of the Blue Cross-Blue Shield insurer tumbled after it joined rival UnitedHealth in noting that rates it receives for managing government-funded Medicaid programs weren't enough to offset a rise in costs.

Elevance Health Inc. shares sank in early trading after the insurer cut its outlook for the year and reported third-quarter profit below Wall Street expectations, citing insufficient payments from Medicaid.

Elevance Health cut its full-year profit forecast on Thursday, as it expects to pay out more in claims due to robust demand for medical care from members in its government-backed plans, sending its shares down 6% in premarket trading.