Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

During the three months ended September 30, 2020 and 2019, we recognized income tax expense of $167 and $306, respectively, which represent effective income tax rates of 42.9% and 20.6%, respectively. The increase in our effective income tax rate was primarily due to the reinstatement of the non-tax deductible Health Insurance Provider Fee, or HIP Fee, for 2020, applied to our quarterly results, which include the impact of expenses recognized during the three months ended September 2020, for our initiatives disclosed in Note 4. “Business Optimization Initiatives” and the litigation settlement accrual described in Note 12, “Commitments and Contingencies - Litigation and Regulatory Proceedings – Blue Cross Blue Shield Antitrust Litigation”.

During the nine months ended September 30, 2020 and 2019, we recognized income tax expense of $1,606 and $1,014, respectively, which represent effective income tax rates of 28.5% and 20.7%, respectively. The increase in our effective income tax rate was primarily due to the reinstatement of the non-tax deductible HIP Fee for 2020.

Income taxes receivable totaled $230 and $335 at September 30, 2020 and December 31, 2019, respectively. We recognize the income tax receivable as an asset under the caption “Other current assets” in our consolidated balance sheets.