Medical payables

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, other than California's non-global risk contracts. The Company does not include inpatient and other ancillary costs for non-global risk contracts held in California, as state regulation does not allow medical group entities to assume risk for inpatient services. Healthcare costs payable are included in medical payables in the consolidated balance sheet.

The following table shows the components of changes in healthcare costs payables:



	For the nine months ended September 30, 2017
Healthcare costs payables, beginning of the period	$	214,275
Add: Components of incurred health care costs
Current year	1,509,433
Prior years	(12,597		)
Acquired balance⁽¹⁾	3,218
Total incurred health care costs	1,500,054
Less: Claims paid
Current year	1,226,953
Prior years	194,285
Total claims paid	1,421,238
Healthcare costs payables, end of the period	$	293,091


(1)	Represents healthcare cost payables acquired in the Magan Medical Clinic, Inc. (Magan) acquisition. See Note 15 to these condensed consolidated financial statements for further discussion of the Magan acquisition.

The Company’s prior year estimates of healthcare costs payable resulted in medical claims being settled for amounts that differed from those originally estimated. When significant increases (decreases) in prior-year health care cost estimates occur that the Company believes significantly impact 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 differed materially from the Company’s year-end estimates.