Medical Claims and Benefits Payable (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of liability for unpaid claims and claims adjustment expense

The following table provides the details of our medical claims and benefits payable (including amounts payable for the provision of long-term services and supports, or LTSS) as of the dates indicated.



	December 31,
	2016		2015		2014
	(In millions)
Fee-for-service claims incurred but not paid (IBNP)	$	1,352	$	1,191	$	871
Pharmacy payable	112		88		71
Capitation payable	37		140		28
Other	428		266		231
	$	1,929	$	1,685	$	1,201

Components of the change in medical claims and benefits payable

The following table presents the components of the change in our medical claims and benefits payable for the periods indicated. The amounts presented for “Components of medical care costs related to: Prior periods” represent the amount by which our original estimate of medical claims and benefits payable at the beginning of the period were more than the actual amount of the liability based on information (principally the payment of claims) developed since that liability was first reported.



	Year Ended December 31,
	2016			2015			2014
	(In millions)
Medical claims and benefits payable, beginning balance	$	1,685		$	1,201		$	670
Components of medical care costs related to:
Current period	14,966			11,935			8,123
Prior periods	(192		)	(141		)	(46		)
Total medical care costs	14,774			11,794			8,077

Change in non-risk provider payables	58			48			(32		)

Payments for medical care costs related to:
Current period	13,304			10,448			7,064
Prior periods	1,284			910			450
Total paid	14,588			11,358			7,514
Medical claims and benefits payable, ending balance	$	1,929		$	1,685		$	1,201

Incurred and paid claims development



Incurred Claims and Allocated Claims Adjustment Expenses							Total IBNP		Cumulative number of reported claims
Benefit Year	2014 ⁽¹⁾		2015 ⁽¹⁾		2016		Total IBNP		Cumulative number of reported claims

	(In millions)
2014	$	8,284	$	8,139	$	8,138	$	3	57
2015			12,113		11,928		22		83
2016					15,064		1,327		102
					$	35,130	$	1,352



Cumulative Paid Claims and Allocated Claims Adjustment Expenses
Benefit Year	2014 ⁽¹⁾		2015 ⁽¹⁾		2016

	(In millions)
2014	$	7,220	$	8,123	$	8,135
2015			10,615		11,906
2016					13,403
					$	33,444

Reconciliation of claims development to liability

The following table represents a reconciliation of claims development to the aggregate carrying amount of the liability for medical claims and benefits payable.



	2016
	(In millions)
Incurred claims and allocated claims adjustment expenses	$	35,130
Less: cumulative paid clams and allocated claims adjustment expenses	(33,444		)
Non-risk provider payables and other	243
Medical claims and benefits payable	$	1,929

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(1)	Data presented for these calendar years is required supplementary information, which is unaudited.