UnitedHealth Group on Tuesday forecast 2024 profit below Wall Street expectations, indicating that medical costs are likely to remain elevated for the health insurance giant.

The largest U.S. health insurer's forecast comes ahead of its investor day on Wednesday, where it is expected to provide its outlook on medical costs.

Focus will also be on any details the company provides on the impact of biosimilars and newer GLP-1 drugs like Novo Nordisk's Ozempic and Wegovy, and Eli Lilly's Mounjaro and Zepbound, J.P. Morgan analyst Lisa Gill said in a note on Monday.

The healthcare sector has this year seen a recovery in demand, especially among older patients who started returning to doctors' clinics and hospitals for procedures they had delayed during the pandemic.

The industry bellwether forecast 2024 adjusted profit of $27.50 to $28.00 per share, below the analysts' average estimate of $27.90, according to LSEG data.

(Reporting by Leroy Leo in Bengaluru; Editing by Maju Samuel and Arun Koyyur)