Health insurer Centene (NYSE:CNC) Corp beat fourth-quarter profit estimates on Tuesday, boosted by its government-backed Medicare health insurance business and lower medical costs.

The company said its quarterly health benefits ratio, which measures medical costs in relation to premiums collected, was 88.7%, better than analysts’ expectations of 88.80%.

COVID-related medical costs have eased over the past few quarters due to a decline in hospitalizations and number of cases, thanks to a nationwide vaccination program.

Excluding items, the company reported a profit of 86 cents per share, compared with Wall Street estimates of 85 cents per share, according to Refinitiv IBES data.