Claims Payable

The following table presents the components of the change in claims payable for the periods presented (dollars in thousands):



	Six Months Ended June 30,
	2012			2011
Claims payable, beginning of period	$	573,448		$	510,675
Health benefits expense incurred during the period:
Related to current year	3,528,233			2,613,310
Related to prior years	(97,982		)	(74,588		)
Total incurred	3,430,251			2,538,722
Health benefits payments during the period:
Related to current year	2,880,028			2,168,850
Related to prior years	437,173			361,039
Total payments	3,317,201			2,529,889
Claims payable, end of period	$	686,498		$	519,508

Health benefits expense incurred during both periods was reduced for amounts related to prior years. The amounts related to prior years include the impact of amounts previously included in the liability to establish it at a level sufficient under moderately adverse conditions that were not needed and the reduction in health benefits expense due to revisions to prior estimates.