MEDICAL COSTS PAYABLE

9 Months Ended

Sep. 30, 2022

Insurance [Abstract]

MEDICAL COSTS PAYABLE

MEDICAL COSTS PAYABLE

The following table shows the components of the change in medical costs payable for the nine months ended September 30 (in thousands):

	September 30,
	2022		2021
Medical costs payable - January 1	$	817,975	$	249,777
Incurred related to:
Current year	4,443,878		2,647,719
Prior year	(36,322)		1,726
Total incurred	4,407,556		2,649,445
Paid related to:
Current year	3,538,386		2,074,602
Prior year	712,019		232,312
Total paid	4,250,405		2,306,914
Acquired claims liabilities	—		92,737
Medical costs payable - September 30	$	975,126	$	685,045

Medical costs payable attributable to prior years decreased by $36.3 million and increased by $1.7 million for the nine months ended September 30, 2022 and 2021, respectively. Medical costs payable estimates are adjusted as additional information becomes known regarding claims; there were no significant changes to estimation methodologies during the periods.

The table below details the components making up the medical costs payable as of September 30 (in thousands):

	September 30,
	2022		2021
Claims unpaid	$	72,917	$	42,488
Provider incentive payable	46,024		69,274
Claims adjustment expense liability	19,528		12,413
Incurred but not reported	836,657		560,870
Total medical costs payable	$	975,126	$	685,045

Medical costs payable are primarily related to the current year. The Company has recorded claims adjustment expense as a component of operating costs in the Condensed Consolidated Statements of Income (Loss).