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Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2016
Accounting Policies [Abstract]  
Summarized premium revenue
The following table summarizes premium revenue for the periods indicated:
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
Amount
 
% of Total
 
Amount
 
% of Total
 
Amount
 
% of Total
 
(Dollars in millions)
California
$
2,370

 
14.5
%
 
$
2,200

 
16.6
%
 
$
1,523

 
16.9
%
Florida
1,926

 
11.7

 
1,199

 
9.0

 
439

 
4.9

Illinois
601

 
3.7

 
397

 
3.0

 
153

 
1.7

Michigan
1,520

 
9.3

 
1,067

 
8.1

 
781

 
8.7

New Mexico
1,304

 
7.9

 
1,237

 
9.3

 
1,076

 
11.9

New York
82

 
0.5

 

 

 

 

Ohio
1,961

 
12.0

 
2,034

 
15.4

 
1,553

 
17.2

Puerto Rico
726

 
4.4

 
567

 
4.3

 

 

South Carolina
378

 
2.3

 
348

 
2.6

 
381

 
4.2

Texas
2,454

 
15.0

 
1,961

 
14.8

 
1,318

 
14.6

Utah
444

 
2.7

 
331

 
2.5

 
310

 
3.4

Washington
2,218

 
13.5

 
1,602

 
12.1

 
1,305

 
14.5

Wisconsin
395

 
2.4

 
261

 
2.0

 
156

 
1.7

Direct delivery
13

 
0.1

 
37

 
0.3

 
28

 
0.3

 
$
16,392

 
100.0
%
 
$
13,241

 
100.0
%
 
$
9,023

 
100.0
%
Receivables (payables) for 3R programs
Our receivables (payables) for each of these programs, as of the dates indicated, were as follows:
 
December 31, 2016
 
December 31, 2015
 
Current Benefit Year
 
Prior Benefit Years
 
Total
 
 
(In millions)
Risk adjustment
$
(522
)
 
$

 
$
(522
)
 
$
(214
)
Reinsurance
51

 
4

 
55

 
36

Risk corridor
(1
)
 

 
(1
)
 
(10
)
Minimum MLR
(1
)
 

 
(1
)
 
(3
)
Quality incentive premium revenue recognized
The following table quantifies the quality incentive premium revenue recognized for the periods presented, including the amounts earned in the periods presented and prior periods. Although the reasonably possible effects of a change in estimate related to quality incentive premium revenue as of December 31, 2016 are not known, we have no reason to believe that the adjustments to prior periods noted below are not indicative of the potential future changes in our estimates as of December 31, 2016, other than the Texas quality revenue recognized in the second quarter of 2016 described above.
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(In millions)
Maximum available quality incentive premium - current period
$
147

 
$
118

 
$
90

 
 
 
 
 
 
Amount of quality incentive premium revenue recognized in current period:
 
 
 
 
 
Earned current period
$
104

 
$
66

 
$
40

Earned prior periods
47

 
13

 
4

Total
$
151

 
$
79

 
$
44

 
 
 
 
 
 
Quality incentive premium revenue recognized as a percentage of total premium revenue
0.9
%
 
0.6
%
 
0.5
%
Consolidated medical care costs
The following table provides the details of our consolidated medical care costs for the periods indicated (dollars in millions, except PMPM amounts): 
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
Amount
 
PMPM
 
% of
Total
 
Amount
 
PMPM
 
% of
Total
 
Amount
 
PMPM
 
% of
Total
Fee-for-service
$
10,993

 
$
217.84

 
74.4
%
 
$
8,572

 
$
218.35

 
72.7
%
 
$
5,673

 
$
202.87

 
70.2
%
Pharmacy
2,213

 
43.84

 
15.0

 
1,610

 
41.01

 
13.7

 
1,273

 
45.54

 
15.8

Capitation
1,218

 
24.13

 
8.2

 
982

 
25.02

 
8.3

 
748

 
26.77

 
9.3

Direct delivery
78

 
1.55

 
0.5

 
128

 
3.26

 
1.1

 
96

 
3.44

 
1.2

Other
272

 
5.39

 
1.9

 
502

 
12.79

 
4.2

 
286

 
10.22

 
3.5

Total
$
14,774

 
$
292.75

 
100.0
%
 
$
11,794

 
$
300.43

 
100.0
%
 
$
8,076

 
$
288.84

 
100.0
%