Medical Claims and Benefits Payable

6 Months Ended

Jun. 30, 2024

Other Liabilities Disclosure [Abstract]

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


	June 30, 2024		December 31, 2023

	(In millions)
Claims incurred but not paid (“IBNP”)	$	3,233	$	2,901
Pharmacy payable	232		202
Capitation payable	158		100
Other	954		1,001
Total	$	4,577	$	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 $284 million and $481 million as of June 30, 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.


	Six Months Ended June 30, 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	13,870		2,555		876		17,301
Prior years	(458)		(52)		(9)		(519)
Total medical care costs	13,412		2,503		867		16,782
Payments for medical care costs related to:
Current year	10,931		1,877		621		13,429
Prior years	2,237		728		196		3,161
Total paid	13,168		2,605		817		16,590
Acquired balances, net of post-acquisition adjustments	—		421		—		421
Change in non-risk and other payables	(177)		(63)		—		(240)
Medical claims and benefits payable, ending balance	$	3,511	$	788	$	278	$	4,577


	Six Months Ended June 30, 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	11,585		1,857		738		14,180
Prior years	(241)		(6)		(24)		(271)
Total medical care costs	11,344		1,851		714		13,909
Payments for medical care costs related to:
Current year	9,184		1,430		552		11,166
Prior years	2,041		406		203		2,650
Total paid	11,225		1,836		755		13,816
Acquired balances, net of post-acquisition adjustments	—		—		—		—
Change in non-risk and other provider payables	58		(2)		—		56
Medical claims and benefits payable, ending balance	$	2,992	$	465	$	220	$	3,677

Our estimates of medical claims and benefits payable recorded at December 31, 2023, and 2022 developed favorably by approximately $519 million and $271 million as of June 30, 2024, and 2023, respectively.

The favorable prior year development recognized in the six months ended June 30, 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.