Medical Claims Payable

6 Months Ended

Jun. 30, 2023

Liability for Claims and Claims Adjustment Expense [Abstract]

Medical Claims payable

Medical Claims Payable

A reconciliation of the beginning and ending balances for medical claims payable for the six months ended June 30, 2023 and 2022 is as follows:

	2023		2022
Gross medical claims payable, beginning of period	$	15,348	$	13,282
Ceded medical claims payable, beginning of period	(6)		(21)
Net medical claims payable, beginning of period	15,342		13,261
Business combinations and purchase adjustments	—		133
Net incurred medical claims:
Current period	61,290		55,737
Prior periods redundancies	(1,112)		(972)
Total net incurred medical claims	60,178		54,765
Net payments attributable to:
Current period medical claims	48,217		42,882
Prior periods medical claims	11,409		10,401
Total net payments	59,626		53,283
Net medical claims payable, end of period	15,894		14,876
Ceded medical claims payable, end of period	8		13
Gross medical claims payable, end of period	$	15,902	$	14,889

At June 30, 2023, the total of net incurred but not reported liabilities plus expected development on reported claims was $597, $2,224 and $13,073 for the claim years 2021 and prior, 2022 and 2023, respectively.

The favorable development recognized in the six months ended June 30, 2023 and 2022 resulted primarily from trend factors in late 2022 and late 2021, respectively, developing more favorably than originally expected. Favorable development in the completion factors resulting from the latter parts of 2022 developing faster than expected also contributed to the favorable development in the six months ended June 30, 2023.

The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the periods in 2023 is as follows:

	Three Months Ended				Six Months Ended June 30, 2023
	March 31, 2023		June 30, 2023
Total net incurred medical claims	$	29,683	$	30,495	$	60,178
Quality improvement and other claims expense	1,103		1,109		2,212
Benefit expense	$	30,786	$	31,604	$	62,390

The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the periods in 2022 is as follows:

	Three Months Ended				Six Months Ended June 30, 2022
	March 31, 2022		June 30, 2022
	(Restated)		(Restated)		(Restated)
Total net incurred medical claims	$	27,131	$	27,634	$	54,765
Quality improvement and other claims expense	1,100		1,161		2,261
Benefit expense	$	28,231	$	28,795	$	57,026

The reconciliation of the medical claims payable reflected in the tables above to the consolidated ending balance for medical claims payable included in the consolidated balance sheet, as of June 30, 2023 and December 31, 2022, is as follows:

	June 30, 2023		December 31, 2022
Net medical claims payable, end of period	$	15,894	$	15,342
Ceded medical claims payable, end of period	8		6
Insurance lines other than short duration	263		248
Gross medical claims payable, end of period	$	16,165	$	15,596