Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

The following table summarizes premium revenue for the periods indicated:



	Year Ended December 31,
	2017				2016				2015
	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(Dollars in millions)
California	$	2,701	14.3	%	$	2,378	14.4	%	$	2,200	16.6	%
Florida	2,568		13.6		1,938		11.8		1,199		9.1
Illinois	593		3.1		603		3.7		398		3.0
Michigan	1,596		8.5		1,527		9.3		1,072		8.1
New Mexico	1,368		7.3		1,305		7.9		1,237		9.3
New York	181		1.0		82		0.5		—		—
Ohio	2,216		11.8		1,967		12.0		2,035		15.3
Puerto Rico	732		3.9		726		4.4		567		4.3
South Carolina	445		2.4		378		2.3		348		2.6
Texas	2,813		14.9		2,461		15.0		1,963		14.8
Utah	535		2.8		447		2.7		334		2.5
Washington	2,608		13.8		2,222		13.5		1,605		12.1
Wisconsin	491		2.6		398		2.4		262		2.0
Other	7		—		13		0.1		41		0.3
	$	18,854	100.0	%	$	16,445	100.0	%	$	13,261	100.0	%

Receivables (payables) for 3R programs



	December 31, 2017								December 31, 2016
	Current Benefit Year			Prior Benefit Years		Total			December 31, 2016
	(In millions)
Risk adjustment	$	(912	)	$	—	$	(912	)	$	(522	)
Reinsurance	—			10		10			55
Risk corridor	—			—		—			(1		)
Minimum MLR	(2		)	—		(2		)	(1		)

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, 2017 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, 2017.



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Maximum available quality incentive premium - current period	$	150		$	147		$	118

Amount of quality incentive premium revenue recognized in current period:
Earned current period	$	97		$	104		$	66
Earned prior periods	10			47			13
Total	$	107		$	151		$	79

Quality incentive premium revenue recognized as a percentage of total premium revenue	0.6		%	0.9		%	0.6		%

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,
	2017						2016						2015
	Amount		PMPM		% of Total		Amount		PMPM		% of Total		Amount		PMPM		% of Total
Fee-for-service	$	12,682	$	229.63	74.3	%	$	10,993	$	217.84	74.4	%	$	8,572	$	218.35	72.7	%
Pharmacy	2,563		46.40		15.0		2,213		43.84		15.0		1,610		41.01		13.7
Capitation	1,360		24.63		8.0		1,218		24.13		8.2		982		25.02		8.3
Direct delivery	73		1.33		0.4		78		1.55		0.5		128		3.26		1.1
Other	395		7.15		2.3		272		5.39		1.9		502		12.79		4.2
Total	$	17,073	$	309.14	100.0	%	$	14,774	$	292.75	100.0	%	$	11,794	$	300.43	100.0	%