Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

In the first quarter of 2023, and in conjunction with the Company's updated strategic plan, executive leadership realignment, and corresponding 2023 divestitures, the Company 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 June 30, 2023, is as follows ($ in millions):

		Medicaid		Medicare		Commercial		Other/Eliminations		Consolidated Total
Premium		$	21,895	$	5,665	$	5,734	$	419	$	33,713
Service		—		—		—		1,125		1,125
Premium and service revenues		21,895		5,665		5,734		1,544		34,838
Premium tax		2,770		—		—		—		2,770
Total external revenues		24,665		5,665		5,734		1,544		37,608
Internal revenues		—		—		—		3,789		3,789
Eliminations		—		—		—		(3,789)		(3,789)
Total revenues		$	24,665	$	5,665	$	5,734	$	1,544	$	37,608
Medical costs		$	19,459	$	4,884	$	4,644	$	360	$	29,347
Cost of services		$	2	$	—	$	—	$	875	$	877
Gross margin (1)		$	2,434	$	781	$	1,090	$	309	$	4,614
(1)	Gross margin represents premium and service revenues less medical costs and cost of services.

Segment information for the three months ended June 30, 2022, is as follows ($ in millions):

		Medicaid		Medicare		Commercial		Other/Eliminations		Consolidated Total
Premium		$	20,488	$	5,639	$	4,554	$	829	$	31,510
Service		(1)		—		1		2,458		2,458
Premium and service revenues		20,487		5,639		4,555		3,287		33,968
Premium tax		1,968		—		—		—		1,968
Total external revenues		22,455		5,639		4,555		3,287		35,936
Internal revenues		—		—		—		5,986		5,986
Eliminations		—		—		—		(5,986)		(5,986)
Total revenues		$	22,455	$	5,639	$	4,555	$	3,287	$	35,936
Medical costs		$	18,258	$	4,826	$	3,529	$	699	$	27,312
Cost of services		$	—	$	—	$	—	$	2,099	$	2,099
Gross margin (1)		$	2,229	$	813	$	1,026	$	489	$	4,557
(1)	Gross margin represents premium and service revenues less medical costs and cost of services.

Segment information for the six months ended June 30, 2023, is as follows ($ in millions):

		Medicaid		Medicare		Commercial		Other/Eliminations		Consolidated Total
Premium		$	44,122	$	11,541	$	10,986	$	889	$	67,538
Service		—		—		—		2,252		2,252
Premium and service revenues		44,122		11,541		10,986		3,141		69,790
Premium tax		6,707		—		—		—		6,707
Total external revenues		50,829		11,541		10,986		3,141		76,497
Internal revenues		—		—		—		7,656		7,656
Eliminations		—		—		—		(7,656)		(7,656)
Total revenues		$	50,829	$	11,541	$	10,986	$	3,141	$	76,497
Medical costs		$	39,469	$	9,892	$	8,649	$	771	$	58,781
Cost of services		$	2	$	—	$	—	$	1,745	$	1,747
Gross margin (1)		$	4,651	$	1,649	$	2,337	$	625	$	9,262
(1)	Gross margin represents premium and service revenues less medical costs and cost of services.

Segment information for the six months ended June 30, 2022, is as follows ($ in millions):

		Medicaid		Medicare		Commercial		Other/Eliminations		Consolidated Total
Premium		$	41,609	$	11,396	$	8,686	$	1,708	$	63,399
Service		(1)		—		1		4,801		4,801
Premium and service revenues		41,608		11,396		8,687		6,509		68,200
Premium tax		4,921		—		—		—		4,921
Total external revenues		46,529		11,396		8,687		6,509		73,121
Internal revenues		—		—		—		12,436		12,436
Eliminations		—		—		—		(12,436)		(12,436)
Total revenues		$	46,529	$	11,396	$	8,687	$	6,509	$	73,121
Medical costs		$	37,033	$	9,872	$	6,803	$	1,442	$	55,150
Cost of services		$	—	$	—	$	—	$	4,087	$	4,087
Gross margin (1)		$	4,575	$	1,524	$	1,884	$	980	$	8,963
(1)	Gross margin represents premium and service revenues less medical costs and cost of services.