Medical Claims and Benefits Payable (Tables)

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Schedule of liability for unpaid claims and claims adjustment expense

The following table provides the details of our medical claims and benefits payable as of the dates indicated.

	December 31,
	2019		2018		2017
	(In millions)
Fee-for-service claims incurred but not paid (“IBNP”)	$	1,406	$	1,562	$	1,717
Pharmacy payable	126		115		112
Capitation payable	55		52		67
Other	267		232		296
Total	$	1,854	$	1,961	$	2,192

Components of the change in medical claims and benefits payable

The following table presents the components of the change in our medical claims and benefits payable for the periods indicated. The amounts presented for “Components of medical care costs related to: Prior periods” represent the amount by which our original estimate of medical claims and benefits payable at the beginning of the period were (more) less than the actual amount of the liability based on information (principally the payment of claims) developed since that liability was first reported.

	Year Ended December 31,
	2019			2018			2017
	(In millions)
Medical claims and benefits payable, beginning balance	$	1,961		$	2,192		$	1,929
Components of medical care costs related to:
Current period	14,176			15,478			17,037
Prior periods (1)	(271		)	(341		)	36
Total medical care costs	13,905			15,137			17,073
Change in non-risk and other provider payables	24			13			(106		)
Payments for medical care costs related to:
Current period	12,554			13,671			15,130
Prior periods	1,482			1,710			1,574
Total paid	14,036			15,381			16,704
Medical claims and benefits payable, ending balance	$	1,854		$	1,961		$	2,192

________________

(1)

December 31, 2018, includes the 2018 benefit of the 2017 Marketplace CSR reimbursement of $81 million.

Incurred and paid claims development

The following tables provide information about incurred and paid claims development as of December 31, 2019, as well as cumulative claims frequency and the total of incurred but not paid claims liabilities. The cumulative claim frequency is measured by claim event, and includes claims covered under capitated arrangements.

Incurred Claims and Allocated Claims Adjustment Expenses							Total IBNP		Cumulative number of reported claims
Benefit Year	2017		2018		2019
	(Unaudited)		(Unaudited)
	(In millions)
2017	$	17,037	$	16,728	$	16,704	$	18	119
2018			15,478		15,245		25		110
2019					14,176		1,348		93
					$	46,125	$	1,391

Cumulative Paid Claims and Allocated Claims Adjustment Expenses
Benefit Year	2017		2018		2019
	(Unaudited)		(Unaudited)
	(In millions)
2017	$	15,130	$	16,671	$	16,686
2018			13,752		15,220
2019					12,554
					$	44,460

Reconciliation of claims development to liability

The following table represents a reconciliation of claims development to the aggregate carrying amount of the liability for medical claims and benefits payable.

	2019
	(In millions)
Incurred claims and allocated claims adjustment expenses	$	46,125
Less: cumulative paid claims and allocated claims adjustment expenses	(44,460		)
All outstanding liabilities before 2017	15
Non-risk and other provider payables	174
Medical claims and benefits payable	$	1,854