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Health Care Costs Payable
 6 Months Ended
Jun. 30, 2025
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 six months ended June 30, 2025 and 2024:
Six Months Ended
June 30,
In millions20252024
Health care costs payable, beginning of the period$15,064 $12,049 
Less: Reinsurance recoverables81 5 
Less: Impact of discount rate on long-duration insurance reserves (1)
(1)(23)
Health care costs payable, beginning of the period, net14,984 12,067 
Add: Components of incurred health care costs
  Current year61,345 56,177 
  Prior years(1,900)(662)
Total incurred health care costs (2)
59,445 55,515 
Less: Claims paid
  Current year48,791 43,218 
  Prior years11,342 10,514 
Total claims paid60,133 53,732 
Health care costs payable, end of the period, net14,296 13,850 
Add: Premium deficiency reserves
902 — 
Add: Reinsurance recoverables103 59 
Add: Impact of discount rate on long-duration insurance reserves (1)
(30)(24)
Health care costs payable, end of the period$15,271 $13,885 
_____________________________________________
(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 income (loss) on the unaudited condensed consolidated balance sheets.
(2)Total incurred health care costs for the six months ended June 30, 2025 and 2024 in the table above exclude $19 million and $48 million, respectively, of health care costs recorded in the Health Care Benefits segment that are included in other insurance liabilities on the unaudited condensed consolidated balance sheets and $86 million and $93 million, respectively, of health care costs recorded in the Corporate/Other segment that are included in other insurance liabilities on the unaudited condensed consolidated balance sheets. Total incurred health care costs for the six months ended June 30, 2025 also exclude $902 million for premium deficiency reserves for the 2025 coverage year related to the Company’s individual exchange and Group Medicare Advantage product lines.

The Company’s estimates of prior years’ health care costs payable decreased by $1.9 billion and $662 million, respectively, in the six months ended June 30, 2025 and 2024, 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 June 30, 2025, 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 $10.4 billion. Substantially all of the Company’s liabilities for IBNR plus expected development on reported claims at June 30, 2025 related to the current year.