Medical Claims and Benefits Payable

3 Months Ended

Mar. 31, 2024

Other Liabilities Disclosure [Abstract]

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


	March 31, 2024		December 31, 2023

	(In millions)
Claims incurred but not paid (“IBNP”)	$	3,239	$	2,901
Pharmacy payable	229		202
Capitation payable	152		100
Other	951		1,001
Total	$	4,571	$	4,204

“Other” medical claims and benefits payable mainly 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 $353 million and $481 million as of March 31, 2024, and December 31, 2023, 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, 2024
	Medicaid		Medicare		Marketplace		Consolidated

	(In millions)
Medical claims and benefits payable, beginning balance	$	3,444	$	532	$	228	$	4,204
Components of medical care costs related to:
Current year	7,007		1,318		423		8,748
Prior years	(289)		(39)		(6)		(334)
Total medical care costs	6,718		1,279		417		8,414
Payments for medical care costs related to:
Current year	4,491		702		216		5,409
Prior years	2,066		630		183		2,879
Total paid	6,557		1,332		399		8,288
Acquired balances, net of post-acquisition adjustments	—		391		—		391
Change in non-risk and other payables	(119)		(31)		—		(150)
Medical claims and benefits payable, ending balance	$	3,486	$	839	$	246	$	4,571


	Three Months Ended March 31, 2023
	Medicaid		Medicare		Marketplace		Consolidated

	(In millions)
Medical claims and benefits payable, beginning balance	$	2,815	$	452	$	261	$	3,528
Components of medical care costs related to:
Current year	5,865		934		370		7,169
Prior years	(250)		(14)		(34)		(298)
Total medical care costs	5,615		920		336		6,871
Payments for medical care costs related to:
Current year	3,728		542		217		4,487
Prior years	1,822		369		167		2,358
Total paid	5,550		911		384		6,845
Acquired balances, net of post-acquisition adjustments	—		—		—		—
Change in non-risk and other provider payables	270		—		—		270
Medical claims and benefits payable, ending balance	$	3,150	$	461	$	213	$	3,824

Our estimates of medical claims and benefits payable recorded at December 31, 2023, and 2022 developed favorably by approximately $334 million and $298 million as of March 31, 2024, and 2023, respectively.

The favorable prior year development recognized in the three months ended March 31, 2024 was primarily due to lower than expected utilization of medical services by our members and improved operating performance, mainly in the Medicaid segment. Consequently, the ultimate costs recognized in 2024, as claims payments were processed, were lower than our estimates in 2023.