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Segments
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segments Segments
We currently have four reportable segments consisting of: 1) Medicaid; 2) Medicare; 3) Marketplace; and 4) Other. Our reportable segments are consistent with how we currently manage the business and view the markets we serve.
The Medicaid, Medicare, and Marketplace segments represent the government-funded or sponsored programs under which we offer managed healthcare services. The Other segment, which is insignificant to our consolidated results of operations, includes certain corporate amounts not associated with or allocated to the Medicaid, Medicare, or Marketplace segments. Additionally, the Other segment includes service revenues and service costs associated with the long-term services and supports consultative services we provide in Wisconsin.
The key metrics used to assess the performance of our Medicaid, Medicare, and Marketplace segments are premium revenue, medical margin and medical care ratio (“MCR”). MCR represents the amount of medical care costs as a percentage of premium revenue. Therefore, the underlying medical margin, or the amount earned by the Medicaid, Medicare, and Marketplace segments after medical costs are deducted from premium revenue, represents the most important measure of earnings reviewed by management, and is used by our chief executive officer to review results, assess performance, and allocate resources. The key metric used to assess the performance of our Other segment is service margin. The service margin is equal to service revenue minus cost of service revenue. We do not report total assets by segment because this is not a metric used to assess segment performance or allocate resources.
The following table presents total revenue by segment. Inter-segment revenue was insignificant for all periods presented.
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(In millions)
Total revenue:
Medicaid$6,524 $5,209 $12,711 $10,229 
Medicare963 822 1,912 1,627 
Marketplace549 751 1,165 1,431 
Other18 18 36 35 
Total$8,054 $6,800 $15,824 $13,322 
The following table reconciles margin by segment to consolidated income before income taxes.
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(In millions)
Margin:
Medicaid$755 $551 $1,465 $1,155 
Medicare124 101 252 178 
Marketplace48 112 178 263 
Other 3 3 6 7 
Total margin 930 767 1,901 1,603 
Add: other operating revenues (1)
237 199 458 398 
Less: other operating expenses (2)
(806)(693)(1,626)(1,393)
Operating income361 273 733 608 
Other expenses, net27 30 55 60 
Income before income tax expense$334 $243 $678 $548 
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(1)Other operating revenues include premium tax revenue, investment income, and other revenue.
(2)Other operating expenses include general and administrative expenses, premium tax expenses, depreciation and amortization, and other operating expenses.