SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2012

Schedule Of Segment Reporting Information, By Segment

Our segment results were as follows for the three and nine months ended September 30, 2012 and 2011:

	Retail		Employer Group		Health and Well-Being Services		Other Businesses		Eliminations/ Corporate			Consolidated
					(in millions)
Three months ended September 30, 2012
Revenues—external customers
Premiums:
Medicare Advantage	$	5,203	$	1,023	$	0	$	0	$	0		$	6,226
Medicare stand-alone PDP		635		2		0		64		0			701
Total Medicare		5,838		1,025		0		64		0			6,927
Fully-insured		255		1,256		0		0		0			1,511
Specialty		45		271		0		0		0			316
Military services		0		0		0		69		0			69
Medicaid and other		0		0		0		265		0			265
Total premiums		6,138		2,552		0		398		0			9,088
Services revenue:
Provider		0		0		271		0		0			271
ASO and other		6		88		0		99		0			193
Pharmacy		0		0		3		0		0			3
Total services revenue		6		88		274		99		0			467
Total revenues—external customers		6,144		2,640		274		497		0			9,555
Intersegment revenues
Services		1		3		2,324		0		(2,328	)		0
Products		0		0		602		0		(602	)		0
Total intersegment revenues		1		3		2,926		0		(2,930	)		0
Investment income		19		11		0		14		52			96
Total revenues		6,164		2,654		3,200		511		(2,878	)		9,651
Operating expenses:
Benefits		5,049		2,178		0		332		(92	)		7,467
Operating costs		658		413		3,028		125		(2,816	)		1,408
Depreciation and amortization		33		20		24		4		(6	)		75
Total operating expenses		5,740		2,611		3,052		461		(2,914	)		8,950
Income from operations		424		43		148		50		36			701
Interest expense		0		0		0		0		26			26
Income before income taxes	$	424	$	43	$	148	$	50	$	10		$	675

Benefit expenses for the three months ended September 30, 2012 included favorable prior-year medical claims reserve development not in the ordinary course of business of an estimated $38 million in our Retail segment, $14 million in our Employer Group segment, and $2 million for our Other Businesses.

	Retail		Employer Group		Health and Well-Being Services		Other Businesses		Eliminations/ Corporate			Consolidated
					(in millions)
Three months ended September 30, 2011
Revenues—external customers
Premiums:
Medicare Advantage	$	4,566	$	803	$	0	$	0	$	0		$	5,369
Medicare stand-alone PDP		579		2		0		43		0			624
Total Medicare		5,145		805		0		43		0			5,993
Fully-insured		221		1,185		0		0		0			1,406
Specialty		33		235		0		0		0			268
Military services		0		0		0		944		0			944
Medicaid and other		0		0		0		241		0			241
Total premiums		5,399		2,225		0		1,228		0			8,852
Services revenue:
Provider		0		0		233		0		0			233
ASO and other		5		89		0		26		0			120
Pharmacy		0		0		3		0		0			3
Total services revenue		5		89		236		26		0			356
Total revenues—external customers		5,404		2,314		236		1,254		0			9,208
Intersegment revenues
Services		0		4		2,130		0		(2,134	)		0
Products		0		0		461		0		(461	)		0
Total intersegment revenues		0		4		2,591		0		(2,595	)		0
Investment income		19		12		0		15		47			93
Total revenues		5,423		2,330		2,827		1,269		(2,548	)		9,301
Operating expenses:
Benefits		4,249		1,857		0		1,117		(76	)		7,147
Operating costs		603		406		2,723		121		(2,492	)		1,361
Depreciation and amortization		30		21		21		2		(7	)		67
Total operating expenses		4,882		2,284		2,744		1,240		(2,575	)		8,575
Income from operations		541		46		83		29		27			726
Interest expense		0		0		0		0		27			27
Income before income taxes	$	541	$	46	$	83	$	29	$	0		$	699

Benefit expenses for the three months ended September 30, 2011 included favorable prior-year medical claims reserve development not in the ordinary course of business of an estimated $32 million in our Retail segment and $9 million in our Employer Group segment, partially offset by unfavorable prior-year medical claims reserve development of an estimated $7 million for our Other Businesses.

	Retail		Employer Group		Health and Well-Being Services		Other Businesses		Eliminations/ Corporate			Consolidated
					(in millions)
Nine months ended September 30, 2012
Revenues—external customers
Premiums:
Medicare Advantage	$	15,604	$	3,059	$	0	$	0	$	0		$	18,663
Medicare stand-alone PDP		1,967		6		0		203		0			2,176
Total Medicare		17,571		3,065		0		203		0			20,839
Fully-insured		749		3,745		0		0		0			4,494
Specialty		125		793		0		0		0			918
Military services		0		0		0		1,006		0			1,006
Medicaid and other		0		0		0		772		0			772
Total premiums		18,445		7,603		0		1,981		0			28,029
Services revenue:
Provider		0		0		749		0		0			749
ASO and other		17		266		0		208		0			491
Pharmacy		0		0		11		0		0			11
Total services revenue		17		266		760		208		0			1,251
Total revenues—external customers		18,462		7,869		760		2,189		0			29,280
Intersegment revenues
Services		2		11		7,187		0		(7,200	)		0
Products		0		0		1,777		0		(1,777	)		0
Total intersegment revenues		2		11		8,964		0		(8,977	)		0
Investment income		58		31		0		43		157			289
Total revenues		18,522		7,911		9,724		2,232		(8,820	)		29,569
Operating expenses:
Benefits		15,609		6,316		0		1,844		(300	)		23,469
Operating costs		1,911		1,257		9,246		364		(8,603	)		4,175
Depreciation and amortization		96		60		67		12		(17	)		218
Total operating expenses		17,616		7,633		9,313		2,220		(8,920	)		27,862
Income from operations		906		278		411		12		100			1,707
Interest expense		0		0		0		0		78			78
Income before income taxes	$	906	$	278	$	411	$	12	$	22		$	1,629

Benefit expenses for the nine months ended September 30, 2012 included favorable prior-year medical claims reserve development not in the ordinary course of business of an estimated $95 million in our Retail segment and $11 million for our Other Businesses, partially offset by unfavorable prior-year medical claims reserve development of an estimated $4 million in our Employer Group segment. In addition, benefit expenses for our Other Businesses for the nine months ended September 30, 2012 included expense of approximately $46 million for a litigation settlement associated with our Military services business.

	Retail		Employer Group		Health and Well-Being Services		Other Businesses		Eliminations/ Corporate			Consolidated
					(in millions)
Nine months ended September 30, 2011
Revenues—external customers
Premiums:
Medicare Advantage	$	13,646	$	2,363	$	0	$	0	$	0		$	16,009
Medicare stand-alone PDP		1,737		6		0		196		0			1,939
Total Medicare		15,383		2,369		0		196		0			17,948
Fully-insured		628		3,601		0		0		0			4,229
Specialty		89		698		0		0		0			787
Military services		0		0		0		2,802		0			2,802
Medicaid and other		0		0		0		702		0			702
Total premiums		16,100		6,668		0		3,700		0			26,468
Services revenue:
Provider		0		0		670		0		0			670
ASO and other		12		269		0		76		0			357
Pharmacy		0		0		8		0		0			8
Total services revenue		12		269		678		76		0			1,035
Total revenues—external customers		16,112		6,937		678		3,776		0			27,503
Intersegment revenues
Services		0		10		6,325		0		(6,335	)		0
Products		0		0		1,330		0		(1,330	)		0
Total intersegment revenues		0		10		7,655		0		(7,665	)		0
Investment income		57		36		0		40		140			273
Total revenues		16,169		6,983		8,333		3,816		(7,525	)		27,776
Operating expenses:
Benefits		13,193		5,409		0		3,375		(216	)		21,761
Operating costs		1,626		1,217		8,004		351		(7,388	)		3,810
Depreciation and amortization		89		64		61		7		(20	)		201
Total operating expenses		14,908		6,690		8,065		3,733		(7,624	)		25,772
Income from operations		1,261		293		268		83		99			2,004
Interest expense		0		0		0		0		82			82
Income before income taxes	$	1,261	$	293	$	268	$	83	$	17		$	1,922