XML 40 R24.htm IDEA: XBRL DOCUMENT v3.22.4
Segments
 12 Months Ended
Dec. 31, 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 long-term services and supports consultative services in Wisconsin.
The key metrics used to assess the performance of our Medicaid, Medicare, and Marketplace segments are premium revenue, medical margin and 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 since 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.
Year Ended December 31,
202220212020
(In millions)
Total revenue:
Medicaid$25,783 $21,231 $15,217 
Medicare3,824 3,379 2,529 
Marketplace2,296 3,091 1,677 
Other71 70 — 
Consolidated$31,974 $27,771 $19,423 
The following table reconciles margin by segment to consolidated income before income tax expense:
Year Ended December 31,
202220212020
(In millions)
Margin:
Medicaid$2,981 $2,322 $1,804 
Medicare437 430 351 
Marketplace290 399 324 
Other11 14 — 
Total margin3,719 3,165 2,479 
Add: other operating revenues (1)
1,020 846 1,124 
Less: other operating expenses (2)
(3,566)(2,991)(2,525)
Operating income1,173 1,020 1,078 
Less: other expenses, net110 145 117 
Income before income tax expense$1,063 $875 $961 
______________________
(1)Other operating revenues include premium tax revenue, health insurer fees reimbursed, Marketplace risk corridor judgment, investment income and other revenue.
(2)Other operating expenses include general and administrative expenses, premium tax expenses, health insurer fees, depreciation and amortization, impairment, and other costs.