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BENEFITS PAYABLE | 6 Months Ended
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Jun. 30, 2017
Insurance [Abstract] |
BENEFITS PAYABLE | BENEFITS PAYABLE On a consolidated basis, activity in benefits payable, excluding military services, was as follows for the six months ended June 30, 2017 and 2016:
|  | For the six months ended June 30,
|  | 2017 |  | 2016
|  | (in millions)
Balances, beginning of period |  | $ | 4,563 |  |  | $ | 4,976 |
Less: Premium deficiency reserve |  | — |  |  | (176 | )
Less: Reinsurance recoverables |  | (76 | ) |  | (85 | )
Balances, beginning of period, net |  | 4,487 |  |  | 4,715 |
Incurred related to: |  |  |  |
Current year |  | 22,576 |  |  | 23,211 |
Prior years |  | (345 | ) |  | (435 | )
Total incurred |  | 22,231 |  |  | 22,776 |
Paid related to: |  |  |  |
Current year |  | (18,332 | ) |  | (18,720 | )
Prior years |  | (3,626 | ) |  | (3,925 | )
Total paid |  | (21,958 | ) |  | (22,645 | )
Premium deficiency reserve |  | — |  |  | 337 |
Reinsurance recoverable |  | 78 |  |  | 75 |
Balances, end of period |  | $ | 4,838 |  |  | $ | 5,258 |
Amounts incurred related to prior periods vary from previously estimated liabilities as the claims ultimately are settled. Negative amounts reported for incurred related to prior years result from claims being ultimately settled for amounts less than originally estimated (favorable development). Our reserving practice is to consistently recognize the actuarial best estimate of our ultimate liability for claims. Actuarial standards require the use of assumptions based on moderately adverse experience, which generally results in favorable reserve development, or reserves that are considered redundant. Benefits expense excluded from the previous table was as follows for the six months ended June 30, 2017 and 2016.
|  | For the six months ended June 30,
|  | 2017 |  | 2016
|  | (in millions)
Premium deficiency reserve - Individual Commercial |  | $ | — |  |  | $ | 161 |
Military services |  | — |  |  | 6 |
Future policy benefits: |  |  |  |
Individual Commercial |  | (36 | ) |  | (62 | )
Other Businesses |  | 20 |  |  | 25 |
Total future policy benefits |  | (16 | ) |  | (37 | )
Total |  | $ | (16 | ) |  | $ | 130 |
Military services benefits expense in the tables above reflect expenses associated with our contracts with the Veterans Administration. Incurred and Paid Claims Development The following discussion provides information about incurred and paid claims development for our Retail, Group and Specialty, and Individual Commercial segments as of June 30, 2017 and 2016, net of reinsurance and the total of IBNR included within the net incurred claims amounts. Retail Segment Activity in benefits payable for our Retail segment was as follows for the six months ended June 30, 2017 and 2016:
|  | For the six months ended June 30,
|  | 2017 |  | 2016
|  | (in millions)
Balances, beginning of period |  | $ | 3,507 |  |  | $ | 3,600 |
Less: Reinsurance recoverables |  | (76 | ) |  | (85 | )
Balances, beginning of period, net |  | 3,431 |  |  | 3,515 |
Incurred related to: |  |  |  |
Current year |  | 20,010 |  |  | 19,259 |
Prior years |  | (287 | ) |  | (299 | )
Total incurred |  | 19,723 |  |  | 18,960 |
Paid related to: |  |  |  |
Current year |  | (16,385 | ) |  | (15,766 | )
Prior years |  | (2,707 | ) |  | (2,946 | )
Total paid |  | (19,092 | ) |  | (18,712 | )
Reinsurance recoverable |  | 78 |  |  | 75 |
Balances, end of period |  | $ | 4,140 |  |  | $ | 3,838 |
At June 30, 2017, benefits payable for our Retail segment included IBNR of approximately $2.7 billion, primarily associated with claims incurred in 2017. Group and Specialty Segment Activity in benefits payable for our Group and Specialty segment, excluding military services, was as follows for the six months ended June 30, 2017 and 2016:
|  | For the six months ended June 30,
|  | 2017 |  | 2016
|  | (in millions)
Balances, beginning of period |  | $ | 578 |  |  | $ | 616 |
Incurred related to: |  |  |  |
Current year |  | 2,629 |  |  | 2,556 |
Prior years |  | (31 | ) |  | (38 | )
Total incurred |  | 2,598 |  |  | 2,518 |
Paid related to: |  |  |  |
Current year |  | (2,117 | ) |  | (2,000 | )
Prior years |  | (518 | ) |  | (543 | )
Total paid |  | (2,635 | ) |  | (2,543 | )
Balances, end of period |  | $ | 541 |  |  | $ | 591 |
At June 30, 2017, benefits payable for our Group and Specialty segment included IBNR of approximately $477 million, primarily associated with claims incurred in 2017. Individual Commercial Segment Activity in benefits payable for our Individual Commercial segment was as follows for the six months ended June 30, 2017 and 2016:
|  | For the six months ended June 30,
|  | 2017 |  | 2016
|  | (in millions)
Balances, beginning of period |  | $ | 454 |  |  | $ | 740 |
Less: Premium deficiency reserve |  | — |  |  | (176 | )
Balances, beginning of period, net |  | 454 |  |  | 564 |
Incurred related to: |  |  |  |
Current year |  | 304 |  |  | 1,816 |
Prior years |  | (26 | ) |  | (97 | )
Total incurred |  | 278 |  |  | 1,719 |
Paid related to: |  |  |  |
Current year |  | (223 | ) |  | (1,396 | )
Prior years |  | (378 | ) |  | (417 | )
Total paid |  | (601 | ) |  | (1,813 | )
Premium deficiency reserve |  | — |  |  | 337 |
Balance, end of period |  | $ | 131 |  |  | $ | 807 |
At June 30, 2017, benefits payable for our Individual Commercial segment included IBNR of approximately $119 million, primarily associated with claims incurred in 2017. Reconciliation to Consolidated The reconciliation of the net incurred and paid claims development tables to benefits payable in the consolidated statement of financial position is as follows:
| Reconciliation of the Disclosure of Incurred and Paid Claims Development to Benefits Payable, net of reinsurance
|  | June 30,
|  | 2017
| Net outstanding liabilities |
| Retail | $ | 4,062 |
| Group and Specialty | 541 |
| Individual Commercial | 131 |
| Other Businesses | 26 |
| Benefits payable, net of reinsurance | 4,760 |
| Reinsurance recoverable on unpaid claims |
| Retail | 78 |
| Total reinsurance recoverable on unpaid claims | 78 |
| Total benefits payable, gross | $ | 4,838 |

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- Definition The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6480747&loc=d3e6772-158386 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6480747&loc=d3e6764-158386 + Details
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