Medical Claims and Benefits Payable

3 Months Ended

Mar. 31, 2025

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, 2025
	Medicaid		Medicare		Marketplace		Other		Consolidated

	(In millions)
Medical claims and benefits payable, beginning balance	$	3,667	$	722	$	251	$	—	$	4,640
Components of medical care costs related to:
Current year	7,495		1,352		795		23		9,665
Prior years	(156)		(56)		26		—		(186)
Total medical care costs	7,339		1,296		821		23		9,479
Payments for medical care costs related to:
Current year	4,593		721		458		17		5,789
Prior years	2,760		623		287		14		3,684
Total paid	7,353		1,344		745		31		9,473
Acquired balances, net of post-acquisition adjustments	—		122		88		35		245
Change in non-risk and other payables	(87)		—		—		—		(87)
Medical claims and benefits payable, ending balance	$	3,566	$	796	$	415	$	27	$	4,804


	Three Months Ended March 31, 2024
	Medicaid		Medicare		Marketplace		Other		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	7,006		1,318		424		—		8,748
Prior years	(289)		(39)		(6)		—		(334)
Total medical care costs	6,717		1,279		418		—		8,414
Payments for medical care costs related to:
Current year	4,490		702		217		—		5,409
Prior years	2,066		630		183		—		2,879
Total paid	6,556		1,332		400		—		8,288
Acquired balances, net of post-acquisition adjustments	—		391		—		—		391
Change in non-risk and other provider payables	(119)		(31)		—		—		(150)
Medical claims and benefits payable, ending balance	$	3,486	$	839	$	246	$	—	$	4,571

Incurred but not paid (“IBNP”) plus expected development on report claims as of March 31, 2025 was $3,194 million. IBNP includes the costs of claims incurred as of the balance sheet date which have been reported to us, and our best estimate of the cost of claims incurred but not yet reported to us. Our estimates of medical claims and benefits payable recorded at December 31, 2024, and 2023 developed favorably by approximately $186 million and $334 million as of March 31, 2025, and 2024, respectively.

The favorable prior year development recognized in the three months ended March 31, 2025 was primarily attributable to reserving under moderately adverse conditions, 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 2025, as claims payments were processed, were lower than our estimates in 2024.