6.	Health care costs payable

The following table includes 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. We do not include inpatient and other ancillary costs for contracts held by our California licensed health plan and for contracts held by our California medical group entities; only professional medical services are included as state regulation does not allow those medical group entities to assume risk for inpatient services. 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 three months ended March 31, 2015:

	Three months ended
	March 31, 2015
Health care costs payable, beginning of the period	$	214,405
Add: Components of incurred health care costs
Current year		388,041
Prior years		(1,111	)
Total incurred health care costs		386,930
Less: Claims paid
Current year		244,136
Prior years		173,378
Total claims paid		417,514
Health care costs payable, end of the period	$	183,821

The Company’s prior year estimates of health care costs payable decreased by $1,111 resulting from certain medical claims being settled for amounts less than originally estimated. When significant increases (decreases) 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 unfavorable (favorable) development of prior-year’s health care cost estimates. Actual claim payments for prior year services have not been materially different from our year-end estimates.