

	December 31,
	2019		2018		2017
	(In millions)
Fee-for-service claims incurred but not paid (“IBNP”)	$	1,406	$	1,562	$	1,717
Pharmacy payable	126		115		112
Capitation payable	55		52		67
Other	267		232		296
Total	$	1,854	$	1,961	$	2,192

“Other” medical claims and benefits payable include amounts payable to certain providers for which we act as an intermediary on behalf of various government agencies without assuming financial risk. Such receipts and payments do not impact our consolidated statements of operations. Non-risk provider payables amounted to $132 million, $107 million and $122 million, as of December 31, 2019, 2018, and 2017, respectively.

The following table presents the components of the change in our medical claims and benefits payable for the periods indicated. The amounts presented for “Components of medical care costs related to: Prior periods” represent the amount by which our original estimate of medical claims and benefits payable at the beginning of the period were (more) less than the actual amount of the liability based on information (principally the payment of claims) developed since that liability was first reported.



	Year Ended December 31,
	2019			2018			2017
	(In millions)
Medical claims and benefits payable, beginning balance	$	1,961		$	2,192		$	1,929
Components of medical care costs related to:
Current period	14,176			15,478			17,037
Prior periods ⁽¹⁾	(271		)	(341		)	36
Total medical care costs	13,905			15,137			17,073

Change in non-risk and other provider payables	24			13			(106		)

Payments for medical care costs related to:
Current period	12,554			13,671			15,130
Prior periods	1,482			1,710			1,574
Total paid	14,036			15,381			16,704
Medical claims and benefits payable, ending balance	$	1,854		$	1,961		$	2,192

The following tables provide information about incurred and paid claims development as of December 31, 2019, as well as cumulative claims frequency and the total of incurred but not paid claims liabilities. The cumulative claim frequency is measured by claim event, and includes claims covered under capitated arrangements.



Incurred Claims and Allocated Claims Adjustment Expenses							Total IBNP		Cumulative number of reported claims
Benefit Year	2017		2018		2019		Total IBNP		Cumulative number of reported claims

	(Unaudited)		(Unaudited)
	(In millions)
2017	$	17,037	$	16,728	$	16,704	$	18	119
2018			15,478		15,245		25		110
2019					14,176		1,348		93
					$	46,125	$	1,391



Cumulative Paid Claims and Allocated Claims Adjustment Expenses
Benefit Year	2017		2018		2019

	(Unaudited)		(Unaudited)
	(In millions)
2017	$	15,130	$	16,671	$	16,686
2018			13,752		15,220
2019					12,554
					$	44,460

The following table represents a reconciliation of claims development to the aggregate carrying amount of the liability for medical claims and benefits payable.



	2019
	(In millions)
Incurred claims and allocated claims adjustment expenses	$	46,125
Less: cumulative paid claims and allocated claims adjustment expenses	(44,460		)
All outstanding liabilities before 2017	15
Non-risk and other provider payables	174
Medical claims and benefits payable	$	1,854

Our estimates of medical claims and benefits payable recorded at December 31, 2018, 2017 and 2016 developed favorably (unfavorably) by approximately $271 million, $341 million and $(36) million in 2019, 2018 and 2017, respectively.

The favorable prior year development recognized in 2019 was primarily due to lower than expected utilization of medical services by our Medicaid members, and improved operating performance. Consequently, the ultimate costs recognized in 2019 were lower than our original estimates in 2018, which was not discernible until additional information was provided, and as claims payments were processed.

The favorable prior year development recognized in 2018 includes a benefit of approximately $81 million in reduced medical care costs relating to Marketplace CSR subsidies for 2017 dates of service. The remainder of the favorable prior period development was primarily due to lower than expected utilization of medical services by our Medicaid and Marketplace members and improved operating performance. The differences between our original estimates in 2017 and the ultimate costs in 2018 were not discernable until additional information was provided to us in 2018 and the effect became clearer over time as claim payments were processed.

The unfavorable prior year development in 2017 was primarily due to higher than expected costs for settling certain claims with certain providers in states where we had recently commenced operations, such as in Illinois and Puerto Rico, or had instituted significant changes due to provider contract changes, such as in Florida and New Mexico. The differences between our original estimates in 2016 and the ultimate costs in 2017 were not discernible until additional information was provided to us in 2017, and the effect became clearer over time as claim payments were processed.