6. MEDICARE PART D

We cover prescription drug benefits in accordance with Medicare Part D under multiple contracts with the Centers for Medicare and Medicaid Services, or CMS. The condensed consolidated balance sheets include the following amounts associated with Medicare Part D as of September 30, 2011 and December 31, 2010. Amounts included below relating to the 2010 contract year for the net risk corridor payable of $380.0 million and the CMS subsidies payable of $98.3 million at September 30, 2011 are expected to be settled in the fourth quarter of 2011.


	September 30, 2011						December 31, 2010
	Risk Corridor Settlement			CMS Subsidies			Risk Corridor Settlement			CMS Subsidies
	(in thousands)
Other current assets	$	2,840		$	26,691		$	1,563		$	16,211
Trade accounts payable and accrued expenses		(623,572	)		(406,157	)		(389,203	)		(170,231	)

Net current liability	$	(620,732	)	$	(379,466	)	$	(387,640	)	$	(154,020	)

As disclosed in Note 2 to the consolidated financial statements included in our 2010 Form 10-K, reinsurance and low-income cost subsidies represent funding from CMS in connection with the Medicare Part D program for which we assume no risk. Beginning in 2011, the Health Reform Legislation mandates consumer discounts of 50% on brand name prescription drugs for Part D plan participants in the coverage gap. These discounts are funded by CMS and pharmaceutical manufacturers while we administer the application of these funds. We account for these subsidies and discounts as a deposit in our consolidated balance sheets and as a financing activity in our consolidated statements of cash flows. We do not recognize premium revenues or benefit expense for these discounts or subsidies. We have included the payable associated with the funding of these discounts with CMS subsidies in the table above.