Segments

We currently have two reportable segments: our Health Plans segment and our Other segment. Our reportable segments are consistent with how we currently manage the business and view the markets we serve.

Description of Earnings Measures for Reportable Segments

Margin is the appropriate earnings measure for our reportable segments, based on how our chief operating decision maker currently reviews results, assesses performance, and allocates resources.

Margin for our Health Plans segment is referred to as “Medical margin,” which represents the amount earned by the segments after medical costs are deducted from premium revenue. The medical care ratio represents the amount of medical care costs as a percentage of premium revenue, and is one of the key metrics used to assess the performance of the segments. Therefore, the underlying medical margin is the most important measure of earnings reviewed by the chief operating decision maker.

The following table presents total revenue by segment. Inter-segment revenue was insignificant for all periods presented.



	Three Months Ended March 31,
	2019		2018
	(In millions)
Total revenue:
Health Plans	$	4,117	$	4,509
Other	2		137
Consolidated	$	4,119	$	4,646

The following table reconciles margin by segment to consolidated income before income taxes:



	Three Months Ended March 31,
	2019			2018
	(In millions)
Margin:
Health Plans	$	581		$	601
Other	—			14
Total margin	581			615
Add: other operating revenues ⁽¹⁾	167			189
Less: other operating expenses ⁽²⁾	(468		)	(582		)
Operating income	280			222
Other expenses, net	20			43
Income before income taxes	$	260		$	179

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(1)	Other operating revenues include premium tax revenue, health insurer fees reimbursed, and investment income and other revenue.


(2)	Other operating expenses include general and administrative expenses, premium tax expenses, health insurer fees, depreciation and amortization, and restructuring costs.