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Segment Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
As discussed in Note 1 “Organization”, we are reorganizing our brand portfolio into three core go-to-market brands over the next several years. Our branding strategy reflects the evolution of our business from a traditional health insurance company to a lifetime, trusted health partner. Given this evolution, we reviewed and modified how we manage our business and the products in each of our operating segments, which has resulted in restructurings between some of our operating segments. As a result of these changes, we have changed our reportable segment presentation and its composition to reflect how we began managing our operations and monitoring performance, aligning strategies and allocating resources beginning on January 1, 2023. The results of our operations are now reported in the following four reportable segments: Health Benefits (aggregates our previously reported Commercial & Specialty Business and Government Business segments), CarelonRx, Carelon Services (previously included in our Other segment) and Corporate & Other. In 2022, we managed and presented our operations through the following four reportable segments: Commercial & Specialty Business, Government Business, CarelonRx and Other. Previously reported information throughout this Form 10-Q has been reclassified to conform to the new presentation.
Our Health Benefits segment offers a comprehensive suite of health plans and services to our Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid and FEHB program members. Our Health Benefits segment also includes our National Government Services business. The Health Benefits segment offers health products on a full-risk basis; provides a broad array of administrative managed care services to our fee-based customers; and provides a variety of specialty and other insurance products and services such as stop loss, dental, vision, life, disability and supplemental health insurance benefits.
Our CarelonRx segment includes our pharmacy business. CarelonRx markets and offers pharmacy services to our affiliated health plan customers, as well as to external customers outside of the health plans we own. CarelonRx offers a comprehensive pharmacy services portfolio, which includes services such as formulary management, pharmacy networks, specialty and home delivery pharmacy services and member services.

Our Carelon Services segment is focused on lowering the cost and improving the quality of healthcare by enabling and creating new care delivery and payment models, with a special emphasis on serving those with complex and chronic
conditions. Carelon Services offers a broad array of healthcare-related services and capabilities to internal and external customers including integrated care delivery, behavioral health, palliative care, utilization management, payment integrity services and subrogation services, as well as health and wellness programs.
Our Corporate & Other segment includes our businesses that do not individually meet the quantitative threshold for an operating segment, as well as corporate expenses not allocated to our other reportable segments.
We define operating revenues to include premium income, product revenue and service fees. Operating revenues are derived from premiums and fees received, primarily from the sale and administration of health benefits and pharmacy products and services. Operating gain is calculated as total operating revenue less benefit expense, cost of products sold and operating expense.
Affiliated revenues represent revenues or costs for services provided to our subsidiaries by CarelonRx and Carelon Services, in addition to certain back-office services provided by our international businesses, which are recorded at cost or management’s estimate of fair market value. These affiliated revenues are eliminated in consolidation.
Financial data by reportable segment for the three months ended June 30, 2023 and 2022 is as follows:
Carelon
Health
Benefits		CarelonRxCarelon
Services		TotalCorporate
& Other		EliminationsTotal
Three Months Ended June 30, 2023
Premiums$36,233 $— $429 $429 $— $(73)$36,589 
Product revenue— 4,859 — 4,859 — — 4,859 
Service fees1,767 — 201 201 (39)— 1,929 
Operating revenue - unaffiliated38,000 4,859 630 5,489 (39)(73)43,377 
Operating revenue - affiliated— 3,607 2,811 6,418 326 (6,744)— 
Operating revenue - total$38,000 $8,466 $3,441 $11,907 $287 $(6,817)$43,377 
Operating gain (loss)$2,148 $496 $136 $632 $(152)$— $2,628 
Three Months Ended June 30, 2022
Premiums$32,787 $— $327 $327 $— $(38)$33,076 
Product revenue— 3,568 — 3,568 — — 3,568 
Service fees1,609 — 220 220 9 — 1,838 
Operating revenue - unaffiliated34,396 3,568 547 4,115 9 (38)38,482 
Operating revenue - affiliated— 3,503 2,436 5,939 306 (6,245)— 
Operating revenue - total$34,396 $7,071 $2,983 $10,054 $315 $(6,283)$38,482 
Operating gain (loss) (restated)$1,781 $479 $113 $592 $(27)$— $2,346 
Financial data by reportable segment for the six months ended June 30, 2023 and 2022 is as follows:
Carelon
Health
Benefits		CarelonRxCarelon
Services		TotalCorporate
& Other		EliminationsTotal
Six Months Ended June 30, 2023
Premiums$71,767 $— $839 $839 $— $(149)$72,457 
Product revenue— 8,881 — 8,881 — — 8,881 
Service fees3,513 — 408 408 16 — 3,937 
Operating revenue - unaffiliated75,280 8,881 1,247 10,128 16 (149)85,275 
Operating revenue - affiliated— 7,609 5,506 13,115 522 (13,637)— 
Operating revenue - total$75,280 $16,490 $6,753 $23,243 $538 $(13,786)$85,275 
Operating gain (loss)$4,307 $1,008 $345 $1,353 (201)— 5,459 
Six Months Ended June 30, 2022
Premiums$65,250 $— $693 $693 $— $(82)$65,861 
Product revenue— 6,869 — 6,869 — — 6,869 
Service fees3,173 — 446 446 19 — 3,638 
Operating revenue - unaffiliated68,423 6,869 1,139 8,008 19 (82)76,368 
Operating revenue - affiliated— 6,885 4,792 11,677 569 (12,246)— 
Operating revenue - total$68,423 $13,754 $5,931 $19,685 $588 $(12,328)$76,368 
Operating gain (loss) (restated)$3,632 $877 $313 $1,190 $(49)$— $4,773 
For segment reporting, we present all capitated risk arrangements on a gross basis; therefore, eliminations also include adjustments for unaffiliated capitated risk arrangements that are recognized on a net basis under GAAP, as well as affiliated eliminations.
A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three and six months ended June 30, 2023 and 2022 is as follows:
 Three Months Ended 
 June 30		Six Months Ended 
 June 30
 2023202220232022
Reportable segments’ operating revenue43,377 $38,482 $85,275 $76,368 
Net investment income416 381 803 741 
Net losses on financial instruments(121)(231)(234)(382)
Total revenues$43,672 $38,632 $85,844 $76,727 
A reconciliation of income before income tax expense to reportable segments’ operating gain included in our consolidated statements of income for the three and six months ended June 30, 2023 and 2022 is as follows:
 Three Months Ended 
 June 30		Six Months Ended 
 June 30
 2023202220232022
(Restated)(Restated)
Income before income tax expense$2,441 $2,122 $5,060 $4,428 
Net investment income(416)(381)(803)(741)
Net losses on financial instruments121 231 234 382 
Interest expense261 208 512 409 
Amortization of other intangible assets221 166 456 295 
Reportable segments’ operating gain$2,628 $2,346 $5,459 $4,773