XML 41 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segments
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Total revenue:
Medicaid$6,380 $5,354 $19,091 $15,583 
Medicare955 875 2,867 2,502 
Marketplace575 793 1,740 2,224 
Other17 18 53 53 
Total$7,927 $7,040 $23,751 $20,362 
The following table reconciles margin by segment to consolidated income before income taxes.
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Margin:
Medicaid$703 $532 $2,168 $1,687 
Medicare108 151 360 329 
Marketplace77 68 255 331 
Other 2 4 8 11 
Total margin 890 755 2,791 2,358 
Add: other operating revenues (1)
274 222 732 620 
Less: other operating expenses (2)
(829)(756)(2,455)(2,149)
Operating income335 221 1,068 829 
Other expenses, net28 30 83 90 
Income before income tax expense$307 $191 $985 $739 
______________________
(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.