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Medical Claims and Benefits Payable
9 Months Ended
Sep. 30, 2024
Other Liabilities Disclosure [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:
September 30,
2024
December 31,
2023
 (In millions)
Claims incurred but not paid (“IBNP”)$3,065 $2,901 
Pharmacy payable249 202 
Capitation payable173 100 
Other1,245 1,001 
Total$4,732 $4,204 

“Other” medical claims and benefits payable mainly 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 $493 million and $481 million as of September 30, 2024, and December 31, 2023, respectively.
The following tables present 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 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.
Nine Months Ended September 30, 2024
Medicaid Medicare MarketplaceConsolidated
 (In millions)
Medical claims and benefits payable, beginning balance$3,444 $532 $228 $4,204 
Components of medical care costs related to:
Current year20,903 3,798 1,349 26,050 
Prior years(553)(70)(2)(625)
Total medical care costs20,350 3,728 1,347 25,425 
Payments for medical care costs related to:
Current year17,813 3,237 1,122 22,172 
Prior years2,256 742 217 3,215 
Total paid20,069 3,979 1,339 25,387 
Acquired balances, net of post-acquisition adjustments— 463 — 463 
Change in non-risk and other payables27 — — 27 
Medical claims and benefits payable, ending balance$3,752 $744 $236 $4,732 
Nine Months Ended September 30, 2023
Medicaid MedicareMarketplaceConsolidated
 (In millions)
Medical claims and benefits payable, beginning balance$2,815 $452 $261 $3,528 
Components of medical care costs related to:
Current year17,630 2,811 1,132 21,573 
Prior years(327)(6)(25)(358)
Total medical care costs17,303 2,805 1,107 21,215 
Payments for medical care costs related to:
Current year14,961 2,340 927 18,228 
Prior years2,074 424 209 2,707 
Total paid17,035 2,764 1,136 20,935 
Acquired balances, net of post-acquisition adjustments83 13 — 96 
Change in non-risk and other provider payables335 (4)— 331 
Medical claims and benefits payable, ending balance$3,501 $502 $232 $4,235 

Our estimates of medical claims and benefits payable recorded at December 31, 2023, and 2022 developed favorably by approximately $625 million and $358 million as of September 30, 2024, and 2023, respectively.
The favorable prior year development recognized in the nine months ended September 30, 2024 was primarily attributable to reserving under moderately adverse conditions, 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 2024, as claims payments were processed, were lower than our estimates in 2023.