SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

The following table summarizes the activity in our self-insurance reserve for losses and loss adjustment expenses for the last two fiscal years:



($ in millions)	2013			2012
Balance at beginning of year	$	342		$	330
Less: reinsurance recoverable	(5		)	(5		)
Net balance at beginning of year	337			325
Incurred related to:
Current year	116			108
Prior year	8			(11		)
Total incurred	124			97
Paid related to:
Current year	(25		)	(28		)
Prior year	(79		)	(57		)
Total paid	(104		)	(85		)
Net balance at end of year	357			337
Add: reinsurance recoverable	5			5
Balance at end of year	$	362		$	342

Our provision for incurred losses relating to the current year increased by $8 million over 2012 primarily due to an increase in medical benefit costs and growth in business activity. Our provision for incurred losses relating to prior years increased by $8 million in 2013 and decreased by $11 million in 2012 as a result of changes in estimates from insured events from prior years due to changes in underwriting experience and frequency and severity trends. Our year-end 2013 self-insurance reserve of $362 million consisted of a current portion of $120 million and long-term portion of $242 million. Our year-end 2012 self-insurance reserve of $342 million consisted of a current portion of $103 million and long-term portion of $239 million.