Medical Claims and Benefits Payable

6 Months Ended

Jun. 30, 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.


	Six Months Ended June 30, 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	14,833		2,813		1,815		48		19,509
Prior years	(162)		(70)		31		—		(201)
Total medical care costs	14,671		2,743		1,846		48		19,308
Payments for medical care costs related to:
Current year	11,981		2,203		1,465		51		15,700
Prior years	2,978		641		284		15		3,918
Total paid	14,959		2,844		1,749		66		19,618
Acquired balances, net of post-acquisition adjustments	—		128		125		42		295
Change in non-risk and other payables	260		—		—		—		260
Medical claims and benefits payable, ending balance	$	3,639	$	749	$	473	$	24	$	4,885


	Six Months Ended June 30, 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	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

Incurred but not paid (“IBNP”) plus expected development on reported claims as of June 30, 2025 was $3,036 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 $201 million and $519 million as of June 30, 2025, and 2024, respectively.

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