Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

In early 2023, and in conjunction with the Company's updated strategic plan, executive leadership realignment, and corresponding 2023 divestitures, the Company has revised the way it manages the business, evaluates performance, and allocates resources, resulting in an updated segment structure comprised of (1) a Medicaid segment, (2) a Medicare segment, (3) a Commercial segment and (4) an Other segment. Prior year information has been adjusted to reflect the change in segment reporting.

The Medicaid, Medicare, and Commercial segments represent the government-sponsored or subsidized programs under which the Company offers managed healthcare services. The Other segment includes the Company's pharmacy operations, vision and dental services, clinical healthcare, behavioral health, international operations, and corporate management companies, among others.

Factors used in determining the reportable business segments include the nature of operating activities, the existence of separate senior management teams, and the type of information presented to the Company's chief operating decision-maker to evaluate all results of operations. The Company does not report total assets by segment since this is not a metric used to allocate resources or evaluate segment performance.

Segment information for the three months ended March 31, 2023, is as follows ($ in millions):

	Medicaid		Medicare		Commercial		Other/Eliminations		Consolidated Total
Premium	$	22,227	$	5,876	$	5,252	$	470	$	33,825
Service	—		—		—		1,127		1,127
Premium and service revenues	22,227		5,876		5,252		1,597		34,952
Premium tax	3,937		—		—		—		3,937
Total external revenues	26,164		5,876		5,252		1,597		38,889
Internal revenues	—		—		—		3,867		3,867
Eliminations	—		—		—		(3,867)		(3,867)
Total revenues	$	26,164	$	5,876	$	5,252	$	1,597	$	38,889
Medical costs	$	20,010	$	5,008	$	4,005	$	411	$	29,434
Cost of services	$	—	$	—	$	—	$	870	$	870
Gross margin (1)	$	2,217	$	868	$	1,247	$	316	$	4,648
(1) Gross margin represents premium and service revenues less medical costs and cost of services.

Segment information for the three months ended March 31, 2022, is as follows ($ in millions):

	Medicaid		Medicare		Commercial		Other/Eliminations		Consolidated Total
Premium	$	21,121	$	5,757	$	4,132	$	879	$	31,889
Service	—		—		—		2,343		2,343
Premium and service revenues	21,121		5,757		4,132		3,222		34,232
Premium tax	2,953		—		—		—		2,953
Total external revenues	24,074		5,757		4,132		3,222		37,185
Internal revenues	—		—		—		6,450		6,450
Eliminations	—		—		—		(6,450)		(6,450)
Total revenues	$	24,074	$	5,757	$	4,132	$	3,222	$	37,185
Medical costs	$	18,775	$	5,046	$	3,274	$	743	$	27,838
Cost of services	$	—	$	—	$	—	$	1,988	$	1,988
Gross margin (1)	$	2,346	$	711	$	858	$	491	$	4,406
(1) Gross margin represents premium and service revenues less medical costs and cost of services.