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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Provision for income taxes

Income tax expense for continuing operations consisted of the following:

			Year Ended December 31,
			2020						2019						2018
			(In millions)
Current:
Federal			$	281					$	204					$	272
State			26						12						18
Foreign			—						9						8
Total current			307						225						298
Deferred:
Federal			(13)						5						(3)
State			(7)						6						(3)
Foreign			1						(1)						—
Total deferred			(19)						10						(6)
Income tax expense			$	288					$	235					$	292

Effective income tax rate reconciliation to the statutory federal income tax rate

A reconciliation of the U.S. federal statutory income tax rate to the combined effective income tax rate for continuing operations is as follows:

			Year Ended December 31,
			2020						2019						2018
Statutory federal tax (benefit) rate			21.0		%				21.0		%				21.0		%
State income provision (benefit), net of federal			1.6						1.4						1.2
Nondeductible health insurer fee (“HIF”)			6.1						—						7.3
Nondeductible compensation			1.1						1.2						0.7
Worthless stock deduction			—						—						(1.0)
Other			0.2						0.6						—
Effective tax expense rate			30.0		%				24.2		%				29.2		%

Significant components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2020 and 2019 were as follows:

			December 31,
			2020						2019
			(In millions)
Accrued expenses and reserve liabilities			$	52					$	35
Other accrued medical costs			15						11
Net operating losses			11						13
Fixed assets and intangibles			—						26
Unearned premiums			18						11
Lease financing obligation			8						5
Tax credit carryover			7						11
Other			4						—
Valuation allowance			(17)						(24)
Total deferred income tax assets, net of valuation allowance			98						88
Fixed assets and intangibles			(7)						—
Prepaid expenses			(10)						(6)
Unrealized gains and losses			(12)						(1)
Other			—						(2)
Total deferred income tax liabilities			(29)						(9)
Net deferred income tax asset			$	69					$	79

Unrecognized tax benefits roll forward

The roll forward of our unrecognized tax benefits is as follows:

			Year Ended December 31,
			2020						2019						2018
			(In millions)
Gross unrecognized tax benefits at beginning of period			$	(20)					$	(20)					$	(13)
Increases in tax positions for current year			—						—						(9)
Lapse in statute of limitations			—						—						2
Gross unrecognized tax benefits at end of period			$	(20)					$	(20)					$	(20)

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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