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Segments
 6 Months Ended
Jun. 30, 2024
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 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 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.
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In millions)
Total revenue:
Medicaid$7,760 $6,728 $15,633 $13,306 
Medicare1,459 1,055 2,916 2,111 
Marketplace641 524 1,222 1,021 
Other20 20 40 38 
Consolidated$9,880 $8,327 $19,811 $16,476 
The following table reconciles margin by segment to consolidated income before income tax expense:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In millions)
Margin:
Medicaid$683 $756 $1,458 $1,490 
Medicare217 113 380 239 
Marketplace178 135 330 289 
Other 2 3 4 5 
Total margin 1,080 1,007 2,172 2,023 
Add: other operating revenues (1)
414 265 821 511 
Less: other operating expenses (2)
(1,060)(829)(2,133)(1,636)
Operating income434 443 860 898 
Less: interest expense28 27 55 55 
Income before income tax expense$406 $416 $805 $843 
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(1)Other operating revenues include premium tax revenue, investment income, and certain other revenue.
(2)Other operating expenses include general and administrative expenses, premium tax expenses, depreciation and amortization, and certain other operating expenses.