12.	Medical payables

The health care costs shown in the following table include estimates for the cost of professional medical services provided by non-employed physicians and other providers, as well as inpatient and other ancillary costs for all markets, other than California, where state regulation allows for the assumption of global risk. Health care costs payable are included in medical payables.

The following table shows the components of changes in the health care costs payable for the year ended December 31, 2014 and 2013:

	December 31,
	2014		2013
Health care costs payable, beginning of the year	$	172,310	$	119,512
Acquisitions and other adjustments		—		26,575
Add: Components of incurred health care costs
Current year		1,572,723		1,329,887
Prior years		3,429		(16,587	)
Total incurred health care costs		1,576,152		1,313,300
Less: Claims paid
Current year		1,378,137		1,169,455
Prior years		155,920		117,622
Total claims paid		1,534,057		1,287,077
Health care costs payable, end of the year	$	214,405	$	172,310

The Company’s prior year estimates of health care costs payable increased (decreased) by $3,429 in 2014 and $(16,587) in 2013, respectively. The increase in 2014 resulted from certain medical claims being settled for amounts more than originally estimated. When significant (decreases) increases in prior-year health care cost estimates occur that the Company believes significantly impacts its current year operating results, the Company discloses that amount as (favorable) unfavorable development of prior-year’s health care cost estimates. Actual claim payments for prior year services have not been materially different from the Company’s year-end estimates.