Medical payables

12 Months Ended

Dec. 31, 2015

Health Care Organizations [Abstract]

12.	Medical payables

The healthcare 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. Healthcare costs payable are included in medical payables.

The following table shows the components of changes in the healthcare costs payable for the year ended December 31, 2015 and 2014:

	December 31,
	2015		2014
Healthcare costs payable, beginning of the year	$	214,405	$	172,310
Add: Components of incurred healthcare costs
Current year		1,587,036		1,572,723
Prior years		1,523		3,429
Total incurred healthcare costs		1,588,559		1,576,152
Less: Claims paid
Current year		1,397,378		1,378,137
Prior years		192,945		155,920
Total claims paid		1,590,323		1,534,057
Healthcare costs payable, end of the year	$	212,641	$	214,405

The Company’s prior year estimates of healthcare costs payable increased by $1,523 and $3,429 in 2015 and 2014, respectively. The increase in 2015 resulted from certain medical claims being settled for amounts more than originally estimated. When significant increases (decreases) in prior-year healthcare 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 healthcare cost estimates. Actual claim payments for prior year services have not been materially different from the Company’s year-end estimates.