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Medical Costs and Medical Costs Payable
12 Months Ended
Dec. 31, 2012
Medical Costs and Medical Costs Payable [Abstract]  
Medical Costs and Medical Costs Payable [Text Block]
Medical Costs and Medical Costs Payable
The following table provides details of the Company’s favorable medical reserve development:
 
 
For the Years Ended December 31,
(in millions)
 
2012
 
2011
 
2010
Related to Prior Years
 
$
860

 
$
720

 
$
800


The favorable development for 2012, 2011 and 2010 was driven by lower than expected health system utilization levels and increased efficiency in claims handling and processing. The favorable development for 2010 was also impacted by a reduction in reserves needed for disputed claims from care providers; and favorable resolution of certain state-based assessments.
The following table shows the components of the change in medical costs payable for the years ended December 31:
(in millions)
 
2012
 
2011
 
2010
Medical costs payable, beginning of period
 
$
9,799

 
$
9,220

 
$
9,362

Acquisitions
 
1,029

 
155

 

Reported medical costs:
 
 
 
 
 
 
Current year
 
81,086

 
75,052

 
69,641

Prior years
 
(860
)
 
(720
)
 
(800
)
Total reported medical costs
 
80,226

 
74,332

 
68,841

Claim payments:
 
 
 
 
 
 
Payments for current year
 
(71,832
)
 
(65,763
)
 
(60,949
)
Payments for prior year
 
(8,218
)
 
(8,145
)
 
(8,034
)
Total claim payments
 
(80,050
)
 
(73,908
)
 
(68,983
)
Medical costs payable, end of period
 
$
11,004

 
$
9,799

 
$
9,220