Medical Claims and Benefits Payable (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017		2016		2015
	(In millions)
Fee-for-service claims incurred but not paid (IBNP)	$	1,717	$	1,352	$	1,191
Pharmacy payable	112		112		88
Capitation payable	67		37		140
Other	296		428		266
	$	2,192	$	1,929	$	1,685

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 less (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,
	2017			2016			2015
	(In millions)
Medical claims and benefits payable, beginning balance	$	1,929		$	1,685		$	1,201
Components of medical care costs related to:
Current period	17,037			14,966			11,935
Prior periods	36			(192		)	(141		)
Total medical care costs	17,073			14,774			11,794

Change in non-risk provider payables	(106		)	58			48

Payments for medical care costs related to:
Current period	15,130			13,304			10,448
Prior periods	1,574			1,284			910
Total paid	16,704			14,588			11,358
Medical claims and benefits payable, ending balance	$	2,192		$	1,929		$	1,685

Incurred and paid claims development



Incurred Claims and Allocated Claims Adjustment Expenses							Total IBNP		Cumulative number of reported claims
Benefit Year	2015 ⁽¹⁾		2016		2017		Total IBNP		Cumulative number of reported claims

	(In millions)
2015	$	12,113	$	11,928	$	11,939	$	6	84
2016			15,064		15,093		46		109
2017					17,037		1,665		114
					$	44,069	$	1,717



Cumulative Paid Claims and Allocated Claims Adjustment Expenses
Benefit Year	2015 ⁽¹⁾		2016		2017

	(In millions)
2015	$	10,615	$	11,906	$	11,932
2016			13,403		14,952
2017					15,130
					$	42,014

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.



	2017
	(In millions)
Incurred claims and allocated claims adjustment expenses	$	44,069
Less: cumulative paid clams and allocated claims adjustment expenses	(42,014		)
Non-risk provider payables and other	137
Medical claims and benefits payable	$	2,192

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(1)	Data presented for this calendar year is required supplementary information, which is unaudited.