
	December 31,
	2022		2021		2020

	(In millions)
Fee-for-service claims incurred but not paid (“IBNP”)	$	2,597	$	2,486	$	1,647
Pharmacy payable	206		219		157
Capitation payable	94		82		70
Other	631		576		528
Magellan Complete Care acquisition opening balance	—		—		294
Total	$	3,528	$	3,363	$	2,696

“Other” medical claims and benefits payable include amounts payable to certain providers for which we act as an intermediary on behalf of various government agencies without assuming financial risk. Such receipts and payments do not impact our consolidated statements of income. Non-risk provider payables amounted to $228 million, $226 million and $235 million, as of December 31, 2022, 2021, and 2020, respectively.


	Year Ended December 31, 2022
	Medicaid		Medicare		Marketplace		Consolidated

	(In millions)
Medical claims and benefits payable, beginning balance	$	2,580	$	404	$	379	$	3,363
Components of medical care costs related to:
Current year	22,097		3,390		1,972		27,459
Prior years	(251)		(32)		(1)		(284)
Total medical care costs	21,846		3,358		1,971		27,175
Payments for medical care costs related to:
Current year	19,655		2,944		1,746		24,345
Prior years	1,966		361		343		2,670
Total paid	21,621		3,305		2,089		27,015
Acquired balances, net of post-acquisition adjustments	12		—		—		12
Change in non-risk and other provider payables	(2)		(5)		—		(7)
Medical claims and benefits payable, ending balance	$	2,815	$	452	$	261	$	3,528


	Year Ended December 31, 2021
	Medicaid		Medicare		Marketplace		Consolidated

	(In millions)
Medical claims and benefits payable, beginning balance	$	2,129	$	392	$	175	$	2,696
Components of medical care costs related to:
Current year	18,321		2,970		2,652		23,943
Prior years	(182)		(39)		(18)		(239)
Total medical care costs	18,139		2,931		2,634		23,704
Payments for medical care costs related to:
Current year	16,284		2,573		2,291		21,148
Prior years	1,601		340		139		2,080
Total paid	17,885		2,913		2,430		23,228
Acquired balances, net of post-acquisition adjustments	205		(8)		—		197
Change in non-risk and other provider payables	(8)		2		—		(6)
Medical claims and benefits payable, ending balance	$	2,580	$	404	$	379	$	3,363


	Year Ended December 31, 2020
	Medicaid		Medicare		Marketplace		Consolidated

	(In millions)
Medical claims and benefits payable, beginning balance	$	1,465	$	267	$	122	$	1,854
Components of medical care costs related to:
Current year	12,545		2,189		1,205		15,939
Prior years	(84)		(28)		(7)		(119)
Total medical care costs	12,461		2,161		1,198		15,820
Payments for medical care costs related to:
Current year	10,940		1,884		1,047		13,871
Prior years	1,176		233		98		1,507
Total paid	12,116		2,117		1,145		15,378
Acquired balances, net of post-acquisition adjustments	215		79		—		294
Change in non-risk and other provider payables	104		2		—		106
Medical claims and benefits payable, ending balance	$	2,129	$	392	$	175	$	2,696

The amounts presented for “Components of medical care costs related to: Prior years” represent the amount by which our original estimate of medical claims and benefits payable at the beginning of the year varied from the actual liabilities, based on information (principally the payment of claims) developed since those liabilities were first reported.

Our estimates of medical claims and benefits payable recorded at December 31, 2022, 2021 and 2020 developed favorably by approximately $284 million, $239 million and $119 million in 2022, 2021 and 2020, respectively. The favorable prior year development recognized in 2022 was primarily due to lower than expected utilization of medical services by our members and improved operating performance, mainly in the Medicaid segment. Consequently, the ultimate costs recognized in 2022, as claims payments were processed, were lower than our estimates in 2021.

The favorable prior year development recognized in 2021 was primarily due to lower than expected utilization of medical services by our Medicaid members, and to a lesser extent our Medicare and Marketplace members, and improved operating performance. Consequently, the ultimate costs recognized in 2021 were lower than our original estimates in 2020, which was not discernible until additional information was provided, and as claims payments were processed.

The favorable prior year development recognized in 2020 was primarily due to lower than expected utilization of medical services by our Medicaid members, and improved operating performance. Consequently, the ultimate costs recognized in 2020 were lower than our original estimates in 2019, which was not discernible until additional information was provided, and as claims payments were processed.

The following tables provide information about our consolidated incurred and paid claims development as of December 31, 2022, as well as cumulative claims frequency and the total of incurred but not paid claims liabilities. The pattern of incurred and paid claims development is consistent across each of our segments. 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	2020		2021		2022

	(Unaudited)		(Unaudited)
	(In millions)
2020	$	16,233	$	16,056	$	16,000	$	27	138
2021			24,167		23,979		108		236
2022					27,459		2,453		264
					$	67,438	$	2,588


Cumulative Paid Claims and Allocated Claims Adjustment Expenses
Benefit Year	2020		2021		2022

	(Unaudited)		(Unaudited)
	(In millions)
2020	$	13,871	$	16,004	$	15,973
2021			21,148		23,871
2022					24,345
					$	64,189

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


	2022

	(In millions)
Incurred claims and allocated claims adjustment expenses	$	67,438
Less: cumulative paid claims and allocated claims adjustment expenses	(64,189)
All outstanding liabilities before 2020	9

Non-risk and other provider payables	270
Medical claims and benefits payable	$	3,528