BENEFITS PAYABLE

3 Months Ended

Mar. 31, 2021

On a consolidated basis, activity in benefits payable, was as follows for the three months ended March 31, 2021 and 2020:


	For the three months ended March 31,
		2021		2020
	(in millions)
Balances, beginning of period		$	8,143	$	6,004

Less: Reinsurance recoverables		—		(68)
Balances, beginning of period, net		8,143		5,936
Acquisitions		42		—
Incurred related to:
Current year		17,851		15,913
Prior years		(555)		(284)
Total incurred		17,296		15,629
Paid related to:
Current year		(10,842)		(10,205)
Prior years		(5,988)		(4,280)
Total paid		(16,830)		(14,485)

Reinsurance recoverable		—		10
Balances, end of period		$	8,651	$	7,090

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, 2021 and 2020, 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, 2021 and 2020:


	For the three months ended March 31,
		2021		2020
	(in millions)
Balances, beginning of period		$	7,428	$	5,363

Less: Reinsurance recoverables		—		(68)
Balances, beginning of period, net		7,428		5,295
Acquisitions		42		—
Incurred related to:
Current year		16,762		14,698
Prior years		(463)		(238)
Total incurred		16,299		14,460
Paid related to:
Current year		(10,330)		(9,490)
Prior years		(5,401)		(3,778)
Total paid		(15,731)		(13,268)

Reinsurance recoverable		—		10
Balances, end of period		$	8,038	$	6,497

At March 31, 2021, benefits payable for our Retail segment included IBNR of approximately $5.0 billion, primarily associated with claims incurred in 2021.

Group and Specialty Segment

Activity in benefits payable for our Group and Specialty segment was as follows for the three months ended March 31, 2021 and 2020:


	For the three months ended March 31,
		2021		2020
	(in millions)
Balances, beginning of period		$	715	$	641




Incurred related to:
Current year		1,237		1,357
Prior years		(92)		(46)
Total incurred		1,145		1,311
Paid related to:
Current year		(660)		(857)
Prior years		(587)		(502)
Total paid		(1,247)		(1,359)


Balances, end of period		$	613	$	593

At March 31, 2021, benefits payable for our Group and Specialty segment included IBNR of approximately $532 million, primarily associated with claims incurred in 2021.

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

	March 31,
	2021
Net outstanding liabilities	(in millions)
Retail	$	8,038
Group and Specialty	613















Total benefits payable	$	8,651