Health Care Costs Payable (Tables)

12 Months Ended

Dec. 31, 2021

Information about incurred and paid health care claims development

The information about incurred and paid health care claims development for the year ended December 31, 2020 is presented as required unaudited supplemental information.


In millions	Incurred Health Care Claims, Net of Reinsurance For the Years Ended December 31,
Date of Service	2020		2021
	(Unaudited)
2020	$	54,529	$	53,804
2021			62,830
	Total		$	116,634

In millions	Cumulative Paid Health Care Claims, Net of Reinsurance For the Years Ended December 31,
Date of Service	2020		2021
	(Unaudited)
2020	$	47,567	$	53,590
2021			54,600
	Total		$	108,190
All outstanding liabilities for health care costs payable prior to 2020, net of reinsurance			130
Total outstanding liabilities for health care costs payable, net of reinsurance			$	8,574

Schedule of liability for unpaid claims and claims adjustment expense

The reconciliation of the December 31, 2021 health care net incurred and paid claims development tables to the health care costs payable liability on the consolidated balance sheet is as follows:


In millions	December 31, 2021
Short-duration health care costs payable, net of reinsurance	$	8,574
Reinsurance recoverables	8
Premium deficiency reserve	16
Insurance lines other than short duration	210
Total health care costs payable	$	8,808

Components of change in health care costs payable

The following table shows the components of the change in health care costs payable during the years ended December 31, 2021, 2020 and 2019:


In millions	2021		2020		2019
Health care costs payable, beginning of period	$	7,936	$	6,879	$	6,147
Less: Reinsurance recoverables	10		5		4
Health care costs payable, beginning of period, net	7,926		6,874		6,143
Acquisitions, net	—		414		—

Add: Components of incurred health care costs
Current year	64,761		55,835		52,723
Prior years	(788)		(429)		(524)
Total incurred health care costs (1)	63,973		55,406		52,199
Less: Claims paid
Current year	56,323		48,770		46,158
Prior years	6,792		6,009		5,314
Total claims paid	63,115		54,779		51,472
Add: Premium deficiency reserve	16		11		4
Health care costs payable, end of period, net	8,800		7,926		6,874
Add: Reinsurance recoverables	8		10		5
Health care costs payable, end of period	$	8,808	$	7,936	$	6,879

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(1)Total incurred health care costs for the years ended December 31, 2021, 2020 and 2019 in the table above exclude (i) $16 million, $11 million and $4 million, respectively, for a premium deficiency reserve related to the Company’s Medicaid products, (ii) $59 million, $41 million and $41 million, respectively, of benefit costs recorded in the Health Care Benefits segment that are included in other insurance liabilities on the consolidated balance sheets and (iii) $212 million, $221 million and $285 million, respectively, of benefit costs recorded in the Corporate/Other segment that are included in other insurance liabilities on the consolidated balance sheets.