Medical Claims and Benefits Payable

6 Months Ended

Jun. 30, 2021

Other Liabilities Disclosure [Abstract]

The following table provides the details of our medical claims and benefits payable as of the dates indicated:


	June 30, 2021		December 31, 2020

	(In millions)
Fee-for-service claims incurred but not paid (“IBNP”)	$	2,120	$	1,647
Pharmacy payable	221		157
Capitation payable	89		70
Other	512		528
Magellan Complete Care acquisition opening balance	—		294
Total	$	2,942	$	2,696

“Other” medical claims and benefits payable includes amounts payable to certain providers for which we act as an intermediary on behalf of various government agencies without assuming financial risk. Such receipts and payments do not impact our consolidated statements of income. Non-risk provider payables amounted to $185 million and $235 million as of June 30, 2021, and December 31, 2020, respectively.

The following table presents the components of the change in our medical claims and benefits payable for the periods indicated, with the prior period recast to conform to the current year presentation. The amounts presented for “Components of medical care costs related to: Prior years” represent decreases in medical care costs resulting from actual medical care costs being less than we previously estimated in the prior year.


	Six Months Ended June 30, 2021
	Medicaid		Medicare		Marketplace		Consolidated

	(In millions)
Medical claims and benefits payable, beginning balance	$	2,129	$	392	$	175	$	2,696
Components of medical care costs related to:
Current year	8,869		1,459		1,158		11,486
Prior years	(150)		(24)		(19)		(193)
Total medical care costs	8,719		1,435		1,139		11,293
Payments for medical care costs related to:
Current year	7,043		1,111		869		9,023
Prior years	1,491		330		128		1,949
Total paid	8,534		1,441		997		10,972
Change in acquired balances	(19)		(7)		—		(26)
Change in non-risk and other provider payables	(48)		(1)		—		(49)
Medical claims and benefits payable, ending balance	$	2,247	$	378	$	317	$	2,942


	Six Months Ended June 30, 2020
	Medicaid		Medicare		Marketplace		Consolidated

	(In millions)
Medical claims and benefits payable, beginning balance	$	1,465	$	267	$	122	$	1,854
Components of medical care costs related to:
Current year	5,777		1,044		551		7,372
Prior years	(34)		(22)		(2)		(58)
Total medical care costs	5,743		1,022		549		7,314
Payments for medical care costs related to:
Current year	4,493		783		412		5,688
Prior years	1,161		228		97		1,486
Total paid	5,654		1,011		509		7,174
Change in non-risk and other provider payables	(34)		—		—		(34)
Medical claims and benefits payable, ending balance	$	1,520	$	278	$	162	$	1,960

Our estimates of medical claims and benefits payable recorded at December 31, 2020, and 2019 developed favorably by approximately $193 million and $58 million as of June 30, 2021, and 2020, respectively.

The favorable prior period development recognized in the six months ended June 30, 2021 was primarily due to lower than expected utilization of medical services by our Medicaid members and improved operating performance. Consequently, the ultimate costs recognized in 2021, as claims payments were processed, were lower than our previous estimates in 2020.