UnitedHealth Group beat forecasts for its earnings in the third quarter, and the U.S.'s largest health insurance provider finally hiked its 2020 outlook after holding off while trying to sort out COVID-19’s impact.

Health insurers had approached 2020 forecasts cautiously so far this year, even though many reaped huge profits in the first half as the spreading pandemic kept people home and out of the health care system.

Both analysts and insurers have said they expected medical costs to rise in the second half of the year, as communities that had shut down opened back up and people felt more comfortable seeking elective surgeries.

UnitedHealth said Wednesday that both care patterns and prescription volumes approached normal levels in its recently completed quarter. The company now expects adjusted net earnings to range between $16.50 to $16.75 per share for 2020.

That’s up from a forecast it first laid out late last year for 2020 earnings of between $16.25 and $16.55 per share. UnitedHealth usually raises its forecast a couple times during the year.

The new range mostly exceeds the average forecast on Wall Street for earnings of $16.57 per share, according to FactSet.

Based in Minnetonka, Minnesota, UnitedHealth Group Inc. runs a health insurance business that covers about 48 million people, mostly in the United States. Its Optum segment also runs one of the nation’s largest pharmacy benefit management operations as well as a growing number of clinics and urgent care and surgery centers.

The company’s net income dropped 10% to $3.17 billion in the quarter, due in part to costs tied to the pandemic. But adjusted earnings totaled $3.51 per share, and total revenue rose about 8% to $65.11 billion.

Analysts expect, on average, adjusted earnings of $3.10 per share in the quarter on $63.79 billion in revenue, according to financial data provider FactSet.