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Medical Claims and Benefits Payable
 12 Months Ended
Dec. 31, 2023
Insurance [Abstract]  
Medical Claims and Benefits Payable Medical Claims and Benefits Payable
The following table provides the details of our medical claims and benefits payable as of the dates indicated.
December 31,
202320222021
(In millions)
Fee-for-service claims incurred but not paid (“IBNP”)$2,901 $2,597 $2,486 
Pharmacy payable202 206 219 
Capitation payable100 94 82 
Other1,001 631 576 
Total$4,204 $3,528 $3,363 
“Other” medical claims and benefits payable includes 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 $481 million, $228 million and $226 million, as of December 31, 2023, 2022, and 2021, respectively.
The following tables present the components of the change in our medical claims and benefits payable for the periods indicated.
Year Ended December 31, 2023
Medicaid Medicare MarketplaceConsolidated
 (In millions)
Medical claims and benefits payable, beginning balance$2,815 $452 $261 $3,528 
Components of medical care costs related to:
Current year23,749 3,802 1,545 29,096 
Prior years(395)(11)(21)(427)
Total medical care costs23,354 3,791 1,524 28,669 
Payments for medical care costs related to:
Current year20,999 3,293 1,323 25,615 
Prior years2,069 431 234 2,734 
Total paid23,068 3,724 1,557 28,349 
Acquired balances, net of post-acquisition adjustments82 14 — 96 
Change in non-risk and other provider payables261 (1)— 260 
Medical claims and benefits payable, ending balance$3,444 $532 $228 $4,204 
Year Ended December 31, 2022
Medicaid Medicare MarketplaceConsolidated
 (In millions)
Medical claims and benefits payable, beginning balance$2,580 $404 $379 $3,363 
Components of medical care costs related to:
Current year22,097 3,390 1,972 27,459 
Prior years(251)(32)(1)(284)
Total medical care costs21,846 3,358 1,971 27,175 
Payments for medical care costs related to:
Current year19,655 2,944 1,746 24,345 
Prior years1,966 361 343 2,670 
Total paid21,621 3,305 2,089 27,015 
Acquired balances, net of post-acquisition adjustments12 — — 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 MarketplaceConsolidated
 (In millions)
Medical claims and benefits payable, beginning balance$2,129 $392 $175 $2,696 
Components of medical care costs related to:
Current year18,321 2,970 2,652 23,943 
Prior years(182)(39)(18)(239)
Total medical care costs18,139 2,931 2,634 23,704 
Payments for medical care costs related to:
Current year16,284 2,573 2,291 21,148 
Prior years1,601 340 139 2,080 
Total paid17,885 2,913 2,430 23,228 
Acquired balances, net of post-acquisition adjustments205 (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 
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, 2023, 2022 and 2021 developed favorably by approximately $427 million, $284 million and $239 million in 2023, 2022 and 2021, respectively. The favorable prior year development recognized in 2023 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 2023, as claims payments were processed, were lower than our estimates in 2022.
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, which was not discernible until additional information was provided, and as claims payments were processed.
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 following tables provide information about our consolidated incurred and paid claims development as of December 31, 2023, 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 ExpensesTotal IBNPCumulative number of reported claims
Benefit Year202120222023
(Unaudited)(Unaudited)
(In millions)
2021$24,167 $23,979 $23,912 $18 133 
202227,459 27,128 77 163 
202329,096 2,803 153 
$80,136 $2,898 
Cumulative Paid Claims and Allocated Claims Adjustment Expenses
Benefit Year202120222023
(Unaudited)(Unaudited)
(In millions)
2021$21,148 $23,871 $23,894 
202224,345 27,051 
202325,615 
$76,560 
The following table represents a reconciliation of claims development to the aggregate carrying amount of the liability for medical claims and benefits payable.
2023
(In millions)
Incurred claims and allocated claims adjustment expenses$80,136 
Less: cumulative paid claims and allocated claims adjustment expenses(76,560)
All outstanding liabilities before 20213 
Acquired balances96 
Non-risk and other provider payables529 
Medical claims and benefits payable $4,204