Medical Claims and Benefits Payable

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

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


	March 31, 2022		December 31, 2021

	(In millions)
Claims incurred but not paid (“IBNP”)	$	2,521	$	2,486
Pharmacy payable	240		219
Capitation payable	95		82
Other	745		576
Total	$	3,601	$	3,363

“Other” medical claims and benefits payable include 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 $322 million and $226 million as of March 31, 2022, and December 31, 2021, respectively.

The following tables present 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 years” represent the amount by which our original estimate of medical claims and benefits payable at the beginning of the year varied from the actual liabilities, based on information (principally the payment of claims) developed since those liabilities were first reported.


	Three Months Ended March 31, 2022
	Medicaid		Medicare		Marketplace		Consolidated

	(In millions)
Medical claims and benefits payable, beginning balance	$	2,580	$	404	$	379	$	3,363
Components of medical care costs related to:
Current year	5,424		840		505		6,769
Prior years	(154)		(25)		(27)		(206)
Total medical care costs	5,270		815		478		6,563
Payments for medical care costs related to:
Current year	3,402		465		330		4,197
Prior years	1,633		306		260		2,199
Total paid	5,035		771		590		6,396
Acquired balances, net of post-acquisition adjustments	(25)		—		—		(25)
Change in non-risk and other provider payables	93		3		—		96
Medical claims and benefits payable, ending balance	$	2,883	$	451	$	267	$	3,601


	Three Months Ended March 31, 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	4,394		738		536		5,668
Prior years	(158)		(16)		(20)		(194)
Total medical care costs	4,236		722		516		5,474
Payments for medical care costs related to:
Current year	2,790		410		313		3,513
Prior years	1,364		304		113		1,781
Total paid	4,154		714		426		5,294
Acquired balances, net of post-acquisition adjustments	8		(33)		—		(25)
Change in non-risk and other provider payables	(11)		(1)		—		(12)
Medical claims and benefits payable, ending balance	$	2,208	$	366	$	265	$	2,839

Our estimates of medical claims and benefits payable recorded at December 31, 2021, and 2020 developed favorably by approximately $206 million and $194 million as of March 31, 2022, and 2021, respectively.

The favorable prior year development recognized in the three months ended March 31, 2022 was primarily due to lower than expected utilization of medical services by our members and improved operating performance. Consequently, the ultimate costs recognized in 2022, as claims payments were processed, were lower than our estimates in 2021.