XML 32 R13.htm IDEA: XBRL DOCUMENT
v3.23.1

Health Care Costs Payable | 3 Months Ended
--- | ---
Mar. 31, 2023
Health Care and Other Insurance Liabilities [Abstract] |
Health Care Costs Payable | Health Care Costs Payable The following table shows the components of the change in health care costs payable during the three months ended March 31, 2023 and 2022:
| Three Months Ended March 31,
In millions | 2023 |  | 2022
Health care costs payable, beginning of the period | $ | 10,142 |  |  | $ | 8,678 |
Less: Reinsurance recoverables | 5 |  |  | 8 |
Less: Impact of discount rate on long-duration insurance reserves (1) | 8 |  |  | — |
Health care costs payable, beginning of the period, net | 10,129 |  |  | 8,670 |
Add: Components of incurred health care costs |  |  |
Current year | 21,068 |  |  | 18,504 |
Prior years | (693) |  |  | (676) |
Total incurred health care costs (2) | 20,375 |  |  | 17,828 |
Less: Claims paid |  |  |
Current year | 11,957 |  |  | 10,225 |
Prior years | 7,645 |  |  | 6,183 |
Total claims paid | 19,602 |  |  | 16,408 |
Add: Premium deficiency reserve | — |  |  | 13 |
Other (3) | — |  |  | (13) |
Health care costs payable, end of the period, net | 10,902 |  |  | 10,090 |
Add: Reinsurance recoverables | 5 |  |  | 8 |
Add: Impact of discount rate on long-duration insurance reserves (1) | (12) |  |  | 7 |
Health care costs payable, end of the period | $ | 10,895 |  |  | $ | 10,105 |
_____________________________________________ (1)Reflects the difference between the current discount rate and the locked-in discount rate on long-duration insurance reserves which is recorded within accumulated other comprehensive loss on the unaudited condensed consolidated balance sheets. Refer to Note 1 ‘‘Significant Accounting Policies’’ for further information related to the adoption of the long-duration insurance contracts accounting standard. (2)Total incurred health care costs for the three months ended March 31, 2023 and 2022 in the table above exclude $22 million and $21 million, respectively, of benefit costs recorded in the Health Care Benefits segment that are included in other insurance liabilities on the unaudited condensed consolidated balance sheets and $51 million and $61 million, respectively, of benefit costs recorded in the Corporate/Other segment that are included in other insurance liabilities on the unaudited condensed consolidated balance sheets. The incurred health care costs for the three months ended March 31, 2022 also exclude $13 million for a premium deficiency reserve related to the Company’s Medicaid products. (3)As a result of the divestiture of the international health care business domiciled in Thailand (“Thailand business”), the net assets associated with this business were accounted for as assets held for sale and the associated health care costs payable balance was included in accrued expenses on the unaudited condensed consolidated balance sheet at March 31, 2022. The Company’s estimates of prior years’ health care costs payable decreased by $693 million and $676 million, respectively, in the three months ended March 31, 2023 and 2022, because claims were settled for amounts less than originally estimated (i.e., the amount of claims incurred was lower than originally estimated), primarily due to lower health care cost trends as well as the actual claim submission time being faster than originally assumed (i.e., the Company’s completion factors were higher than originally assumed) in estimating health care costs payable at the end of the prior year. At March 31, 2023, the Company’s liabilities for the ultimate cost of (i) services rendered to the Company’s Insured members but not yet reported to the Company and (ii) claims which have been reported to the Company but not yet paid (collectively, “IBNR”) plus expected development on reported claims totaled approximately $8.0 billion. The majority of the Company’s liabilities for IBNR plus expected development on reported claims at March 31, 2023 related to the current year.

X
- Definition Health Care and Other Insurance Liabilities [Abstract] + References No definition available. + Details
Name: | cvs_HealthCareandOtherInsuranceLiabilitiesAbstract
Namespace Prefix: | cvs_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -URI https://asc.fasb.org/subtopic&trid=2560295 + Details
Name: | us-gaap_LiabilityForFuturePolicyBenefitsAndUnpaidClaimsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration