(Reuters) -Humana beat Wall Street estimates for third-quarter profit on Wednesday, buoyed by strength in its government-backed Medicare Advantage insurance business for older adults.

The health insurer relies heavily on Medicare Advantage plans, through which the U.S. government pays private insurers a fixed rate to manage healthcare for people aged 65 and older or those with disabilities.

Humana reported a medical cost ratio of 89.9%, up from 86.6% a year earlier. This ratio, which tracks costs, represents the percentage of premiums spent on medical care.

Analysts had expected the medical cost ratio to be 89.94% for the quarter.

On an adjusted basis, the company reported a profit of $4.16 per share, higher than the average analyst estimate of $3.40, according to data polled by LSEG.

The Louisville, Kentucky-based company reported a quarterly adjusted revenue of $29.3 billion beating estimates of $28.67 billion.