6.	Health care costs payable

The following table includes estimates for the cost of professional medical services provided by non-employed physicians and other providers, as well as inpatient and other ancillary costs for all markets other than California. The Company does not include inpatient and other ancillary costs for contracts held by its California licensed health plan and for contracts held by its California medical group entities; only professional medical services are included as state regulation does not allow those medical group entities to assume risk for inpatient services. Health care costs payable are included in medical payables in the condensed consolidated balance sheet.

The following table shows the components of changes in the health care costs payable for the six months ended June 30, 2015:

	Six months ended
	June 30, 2015
Health care costs payable, beginning of the period	$	214,405
Add: Components of incurred health care costs
Current year		783,602
Prior years		838
Total incurred health care costs		784,440
Less: Claims paid
Current year		623,940
Prior years		191,765
Total claims paid		815,705
Health care costs payable, end of the period	$	183,140

The Company’s prior year estimates of health care costs payable increased by $838 resulting from certain medical claims being settled in excess of amounts that were originally estimated. When significant increases (decreases) in prior-year health care cost estimates occur that the Company believes significantly impacts its current year operating results, the Company discloses that amount as unfavorable (favorable) development of prior-year’s health care cost estimates. Actual claim payments for prior year services have not been materially different from the Company’s year-end estimates.