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Retirement Benefits
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Retirement Benefits Retirement Benefits
 We sponsor various non-contributory employee defined benefit plans through certain subsidiaries. 
The Anthem Cash Balance Plan A and the Anthem Cash Balance Plan B are cash balance pension plans covering certain eligible employees of the affiliated companies that participate in these plans. Effective January 1, 2006, benefits were curtailed, with the result that most participants stopped accruing benefits but continue to earn interest on benefits accrued prior to the curtailment. Certain participants subject to collective bargaining and certain other participants who met grandfathering rules continued to accrue benefits. Participants who did not receive credits and/or benefit accruals were included in the Anthem Cash Balance Plan A, while employees who were still receiving credits and/or benefits participated in the Anthem Cash Balance Plan B. Effective January 1, 2019, benefits under the Anthem Cash Balance Plan B were curtailed. All grandfathered participants no longer have pay credits added to their accounts but continue to earn interest on existing account balances. Participants continue to earn years of pension service for vesting purposes. Several pension plans acquired through various corporate mergers and acquisitions were merged into these plans in prior years.
The Employees’ Retirement Plan of Blue Cross of California (the “BCC Plan”) is a defined benefit pension plan that covers eligible employees of Blue Cross of California who are covered by a collective bargaining agreement. Effective January 1, 2007, benefits were curtailed under the BCC Plan with the result that no Blue Cross of California employees hired or rehired after December 31, 2006 are eligible to participate in the BCC Plan.
All of the plans’ assets consist primarily of equity securities, fixed maturity securities, investment funds and cash. The funding policies for all plans are to contribute amounts at least sufficient to meet the minimum funding requirements set forth in the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), as further amended by the Pension Protection Act of 2006, and in accordance with income tax regulations, plus such additional amounts as are necessary to provide assets sufficient to meet the benefits to be paid to plan participants.
The following tables disclose consolidated “pension benefits,” which include the defined benefit pension plans described above, and consolidated “other benefits,” which include postretirement health and welfare benefits including medical, vision and dental benefits offered to certain employees. Calculations were computed using assumptions at the December 31 measurement dates.
The reconciliation of the benefit obligation is as follows:
 Pension BenefitsOther Benefits
 2020201920202019
Benefit obligation at beginning of year$1,880 $1,743 $423 $431 
Service cost— — 1 1 
Interest cost47 62 10 15 
Plan participant contributions— — 18 17 
Actuarial loss (gain)219 200 (15)5 
Settlements(80)(35)— — 
Benefits paid(57)(90)(38)(46)
Benefit obligation at end of year$2,009 $1,880 $399 $423 
The changes in the fair value of plan assets are as follows:
 Pension BenefitsOther Benefits
 2020201920202019
Fair value of plan assets at beginning of year$2,026 $1,818 $367 $336 
Actual return on plan assets290 329 33 55 
Employer contributions7 4 11 5 
Plan participant contributions— — 18 17 
Settlements(80)(35)— — 
Benefits paid(57)(90)(38)(46)
Fair value of plan assets at end of year$2,186 $2,026 $391 $367 
 The net amount included in the consolidated balance sheets is as follows:
 Pension BenefitsOther Benefits
 2020201920202019
Noncurrent assets$248 $212 $— $— 
Current liabilities(6)(6)— — 
Noncurrent liabilities(65)(60)(8)(56)
Net amount at December 31$177 $146 $(8)$(56)
 The net amounts included in accumulated other comprehensive income (loss) that have not been recognized as components of net periodic benefit costs are as follows:
 Pension BenefitsOther Benefits
 2020201920202019
Net actuarial loss$749 $734 $3 $25 
Prior service cost (credit)— 1 (12)(19)
Net amount before tax at December 31$749 $735 $(9)$6 
The accumulated benefit obligation for the defined benefit pension plans was $2,007 and $1,878 at December 31, 2020 and 2019, respectively. 
As of December 31, 2020, certain pension plans had accumulated benefit obligations in excess of plan assets. Such plans had accumulated benefit obligation and fair value of plan assets of $111 and $42, respectively. For those same plans, the projected benefit obligation was also in excess of plan assets. Such plans had projected benefit obligation and fair value of plan assets of $113 and $42, respectively.
The weighted-average assumptions used in calculating the benefit obligations for all plans are as follows: 
 Pension BenefitsOther Benefits
 2020201920202019
Discount rate2.24 %3.11 %1.99 %2.93 %
Rate of compensation increase3.00 %3.00 %3.00 %3.00 %
Expected rate of return on plan assets6.72 %7.33 %6.60 %7.00 %
Interest crediting rate3.82 %3.82 %0.87 %1.81 %
The components of net periodic benefit credit included in the consolidated statements of income are as follows:
202020192018
Pension Benefits
Service cost$— $— $8 
Interest cost47 62 55 
Expected return on assets(138)(138)(147)
Recognized actuarial loss24 17 22 
Settlement loss29 9 5 
Net periodic benefit credit$(38)$(50)$(57)
Other Benefits
Service cost$1 $1 $1 
Interest cost10 15 15 
Expected return on assets(25)(22)(24)
Recognized actuarial loss— 2 3 
Amortization of prior service credit(7)(12)(12)
Net periodic benefit credit$(21)$(16)$(17)
During the years ended December 31, 2020, 2019 and 2018, we incurred total settlement losses of $29, $9 and $5, respectively, as lump-sum payments exceeded the service cost and interest cost components of net periodic benefit cost for certain of our plans. 
The weighted-average assumptions used in calculating the net periodic benefit cost for all plans are as follows:
202020192018
Pension Benefits
Discount rate3.11 %4.15 %3.44 %
Rate of compensation increase3.00 %3.00 %3.00 %
Expected rate of return on plan assets7.33 %7.44 %7.83 %
Interest crediting rate3.82 %3.83 %3.82 %
Other Benefits
Discount rate2.93 %4.04 %3.42 %
Rate of compensation increase3.00 %3.00 %3.00 %
Expected rate of return on plan assets7.00 %7.00 %7.00 %
Interest crediting rate1.81 %3.12 %2.35 %
The assumed healthcare cost trend rates used to measure the expected cost of pre-Medicare (those who are not currently eligible for Medicare benefits) other benefits at our December 31, 2020 measurement date was 7.00% for 2021 with a gradual decline to 4.50% by the year 2033. The assumed healthcare cost trend rates used to measure the expected cost of post-Medicare (those who are currently eligible for Medicare benefits) other benefits at our December 31, 2020 measurement date was 5.50% for 2021 with a gradual decline to 4.50% by the year 2033. These estimated trend rates are subject to change in the future.
Plan assets include a diversified mix of equity securities, investment grade fixed maturity securities and other types of investments across a range of sectors and levels of capitalization to maximize long-term return for a prudent level of risk. The weighted-average target allocation for pension benefit plan assets is 44% equity securities, 48% fixed maturity securities, and 8% to all other types of investments. Equity securities primarily include a mix of domestic securities, foreign securities and
mutual funds invested in equities. Fixed maturity securities primarily include treasury securities, corporate bonds and asset-backed investments issued by corporations and the U.S. government. Other types of investments primarily include insurance contracts designed specifically for employee benefit plans and a commingled fund comprised primarily of equity securities. As of December 31, 2020, there were no significant concentrations of investments in the pension benefit assets or other benefit assets. No plan assets were invested in Anthem common stock.
The partnerships hold various types of underlying assets such as real estate and investments in oil and gas companies. Generally, the partnership interests are not redeemable and are transferable only with the consent of the general partner. Unfunded commitments related to all partnership interests totaled approximately $3 and $29 at December 31, 2020 and 2019, respectively.
Pension benefit assets and other benefit assets recorded at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
 The fair values of our pension benefit assets and other benefit assets by asset category and level inputs at December 31, 2020, excluding cash, investment income receivable and amounts due to/from brokers, resulting in a net asset of $64, are as follows (see Note 7, “Fair Value,” for additional information regarding the definition of level inputs):
Level ILevel IILevel IIITotal
December 31, 2020
Pension Benefit Assets:
Equity securities:
U.S. securities$710 $— $— $710 
Foreign securities238 — — 238 
Mutual funds42 — — 42 
Fixed maturity securities:
Government securities— 237 — 237 
Corporate securities— 394 — 394 
Asset-backed securities— 137 — 137 
Other types of investments:
Commingled fund— 112 — 112 
Insurance company contracts— — 189 189 
Total pension benefit assets at fair value$990 $880 $189 2,059 
Partnership investments74 
Total pension benefit assets$2,133 
Other Benefit Assets:
Equity securities:
U.S. securities$9 $— $— $9 
Foreign securities3 — — 3 
Mutual funds23 — — 23 
Fixed maturity securities:
Government securities— 2 — 2 
Corporate securities— 4 — 4 
Asset-backed securities— 3 — 3 
Other types of investments:
Commingled fund— 2 — 2 
Life insurance contracts— — 323 323 
Investment in DOL 103-12 trust— 11 — 11 
Total other benefit assets$35 $22 $323 $380 
The fair values of our pension benefit assets and other benefit assets by asset category and level inputs at December 31, 2019, excluding cash, investment income receivable and amounts due to/from brokers, resulting in a net asset of $64, are as follows:
Level ILevel IILevel IIITotal
December 31, 2019
Pension Benefit Assets:
Equity securities:
U.S. securities$626 $— $— $626 
Foreign securities197 — — 197 
Mutual funds38 — — 38 
Fixed maturity securities:
Government securities— 252 — 252 
Corporate securities— 339 — 339 
Asset-backed securities— 163 — 163 
Other types of investments:
Insurance company contracts— — 175 175 
Commingled fund— 136 — 136 
Total pension benefit assets at fair value$861 $890 $175 1,926 
Partnership investments52 
Total pension benefit assets$1,978 
Other Benefit Assets:
Equity securities:
U.S. securities$8 $— $— $8 
Foreign securities2 — — 2 
Mutual funds25 — — 25 
Fixed maturity securities:
Government securities— 2 — 2 
Corporate securities— 4 — 4 
Asset-backed securities— 3 — 3 
Other types of investments:
Life insurance contracts— — 294 294 
Investment in DOL 103-12 trust— 12 — 12 
Commingled fund— 1 — 1 
Total other benefit assets at fair value$35 $22 $294 $351 
A reconciliation of the beginning and ending balances of plan assets measured at fair value using Level III inputs for the years ended December 31, 2020, 2019 and 2018 is as follows:
Insurance
Company
Contracts		Life
Insurance
Contracts		Total
Year ended December 31, 2020
Beginning balance at January 1, 2020$175 $294 $469 
Actual return on plan assets relating to assets still held at the reporting date
7 29 36 
Purchases15 — 15 
Sales(8)— (8)
Ending balance at December 31, 2020$189 $323 $512 
Year ended December 31, 2019
Beginning balance at January 1, 2019$166 $249 $415 
Actual return on plan assets relating to assets still held at the reporting date
12 45 57 
Purchases6 — 6 
Sales(9)— (9)
Ending balance at December 31, 2019$175 $294 $469 
Year ended December 31, 2018
Beginning balance at January 1, 2018$173 $269 $442 
Actual return on plan assets relating to assets still held at the reporting date
(7)(15)(22)
Purchases8 — 8 
Sales(8)(5)(13)
Ending balance at December 31, 2018$166 $249 $415 
There were no other transfers into or out of Level III during the years ended December 31, 2020, 2019 or 2018.
Our current funding strategy is to fund an amount at least equal to the minimum required funding as determined under ERISA with consideration of maximum tax deductible amounts. We may elect to make discretionary contributions up to the maximum amount deductible for income tax purposes. For the years ended December 31, 2020, 2019 and 2018, no material contributions were necessary to meet ERISA required funding levels. However, during each of the years ended December 31, 2020, 2019 and 2018, we made tax deductible discretionary contributions to the pension benefit plans of $7, $4, and $4. Employer contributions to other benefit plans represent discretionary contributions and do not include payments to retirees for current benefits.
Our estimated future payments for pension benefits and postretirement benefits, which reflect expected future service, as appropriate, are as follows:
Pension
Benefits		Other
Benefits
2021$131 $35 
2022128 34 
2023126 32 
2024121 31 
2025119 30 
2026 - 2030552 125 
In addition to the defined benefit plans, we maintain the Anthem 401(k) Plan, which is a qualified defined contribution plan covering substantially all employees. Voluntary employee contributions are matched by us subject to certain limitations. Contributions made by us totaled $221, $201 and $211 during 2020, 2019 and 2018, respectively. Contributions in 2018 include approximately $58 for a one time contribution made to employees following the enactment of the Tax Cuts and Jobs Act.