MEDICAL COSTS PAYABLE

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

MEDICAL COSTS PAYABLE

MEDICAL COSTS PAYABLE

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

	June 30,
	2023		2022
Medical costs payable - January 1	$	116,021	$	6,764
Incurred related to:
Current year	504,307		312,339
Prior year	1,029		(2,089)
Total incurred	505,336		310,250
Paid related to:
Current year	347,629		210,452
Prior year	93,873		4,547
Total paid	441,502		214,999
Medical costs payable - June 30	$	179,855	$	102,015

Medical costs payable attributable to prior years increased by $1.0 million and decreased by $2.1 million for the six months ended June 30, 2023 and 2022, respectively. Medical costs payable estimates are adjusted as additional information regarding claims becomes known; 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 June 30 (in thousands):

	June 30,
	2023		2022
Provider incentive payable	$	27,884	$	—
Incurred but not reported (IBNR)	151,971		102,015
Total medical costs payable	$	179,855	$	102,015

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).