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BENEFITS PAYABLE
 3 Months Ended
Mar. 31, 2020
Insurance [Abstract]  
BENEFITS PAYABLE BENEFITS PAYABLE
On a consolidated basis, activity in benefits payable, was as follows for the three months ended March 31, 2020 and 2019:
 
 
For the three months ended March 31,
 
 
2020
 
2019
 
 
(in millions)
Balances, beginning of period
 
$
6,004

 
$
4,862

Less: Reinsurance recoverables
 
(68
)
 
(95
)
Balances, beginning of period, net
 
5,936

 
4,767

Incurred related to:
 
 
 
 
Current year
 
15,913

 
13,760

Prior years
 
(284
)
 
(267
)
Total incurred
 
15,629

 
13,493

Paid related to:
 
 
 
 
Current year
 
(10,205
)
 
(8,725
)
Prior years
 
(4,280
)
 
(3,595
)
Total paid
 
(14,485
)
 
(12,320
)
Reinsurance recoverable
 
10

 
84

Balances, end of period
 
$
7,090

 
$
6,024


Amounts incurred related to prior periods vary from previously estimated liabilities as the claims ultimately are settled. Negative amounts reported for incurred related to prior years result from claims being ultimately settled for amounts less than originally estimated (favorable development).
Our reserving practice is to consistently recognize the actuarial best estimate of our ultimate liability for claims. Actuarial standards require the use of assumptions based on moderately adverse experience, which generally results in favorable reserve development, or reserves that are considered redundant.
Incurred and Paid Claims Development
The following discussion provides information about incurred and paid claims development for our Retail and Group and Specialty segments as of March 31, 2020 and 2019, net of reinsurance, and the total estimate of benefits payable for claims incurred but not reported, or IBNR, included within the net incurred claims amounts.








Retail Segment
Activity in benefits payable for our Retail segment was as follows for the three months ended March 31, 2020 and 2019:
 
 
For the three months ended March 31,
 
 
2020
 
2019
 
 
(in millions)
Balances, beginning of period
 
$
5,363

 
$
4,338

Less: Reinsurance recoverables
 
(68
)
 
(95
)
Balances, beginning of period, net
 
5,295

 
4,243

Incurred related to:
 
 
 
 
Current year
 
14,698

 
12,606

Prior years
 
(238
)
 
(283
)
Total incurred
 
14,460

 
12,323

Paid related to:
 
 
 
 
Current year
 
(9,490
)
 
(8,032
)
Prior years
 
(3,778
)
 
(3,133
)
Total paid
 
(13,268
)
 
(11,165
)
Reinsurance recoverable
 
10

 
84

Balances, end of period
 
$
6,497

 
$
5,485


At March 31, 2020, benefits payable for our Retail segment included IBNR of approximately $4.4 billion, primarily associated with claims incurred in 2019.
Group and Specialty Segment
Activity in benefits payable for our Group and Specialty segment, was as follows for the three months ended March 31, 2020 and 2019:
 
 
For the three months ended March 31,
 
 
2020
 
2019
 
 
(in millions)
Balances, beginning of period
 
$
641

 
$
517

Incurred related to:
 
 
 
 
Current year
 
1,357

 
1,271

Prior years
 
(46
)
 
16

Total incurred
 
1,311

 
1,287

Paid related to:
 
 
 
 
Current year
 
(857
)
 
(803
)
Prior years
 
(502
)
 
(462
)
Total paid
 
(1,359
)
 
(1,265
)
Balances, end of period
 
$
593

 
$
539


At March 31, 2020, benefits payable for our Group and Specialty segment included IBNR of approximately $528 million, primarily associated with claims incurred in 2019.
Reconciliation to Consolidated

The reconciliation of the net incurred and paid claims development tables to benefits payable in the consolidated
statement of financial position is as follows:
 
Reconciliation of the Disclosure of Incurred and Paid Claims Development to Benefits Payable, net of reinsurance
 
 
 
March 31,
 
 
2020
 
Net outstanding liabilities
(in millions)
 
Retail
$
6,487

 
Group and Specialty
593

 
    Benefits payable, net of reinsurance
7,080

 
 
 
 
Reinsurance recoverable on unpaid claims
 
 
Retail
10

 
     Total benefits payable, gross
$
7,090