Segments

12 Months Ended

Dec. 31, 2019

We currently have two reportable segments: the Health Plans segment and the Other segment. Our reportable segments are consistent with how we currently manage the business and view the markets we serve. Our Other

segment, which was insignificant to our consolidated results of operations in 2018 and 2019, includes the historical results of the MMIS and behavioral health subsidiaries we sold in late 2018, as well as certain corporate amounts not allocated to the Health Plans segment.

Margin is the appropriate earnings measure for our reportable segments, based on how our chief operating decision maker currently reviews results, assesses performance, and allocates resources.

The key metrics used to assess the performance of our Health Plans segment are premium revenue, medical margin and MCR. MCR represents the amount of medical care costs as a percentage of premium revenue. Therefore, the underlying margin, or the amount earned by the Health Plans segment after medical costs are deducted from premium revenue, is the most important measure of earnings reviewed by management. Margin for our Health Plans segment is referred to as “Medical Margin.”



	Health Plans		Other		Consolidated
	(In millions)
2019
Total revenue	$	16,815	$	14	16,829
Margin	2,303		—		2,303
Goodwill, and intangible assets, net	172		—		172
Total assets	5,265		1,522		6,787
2018
Total revenue	$	18,471	$	419	$	18,890
Margin	2,475		43		2,518
Goodwill, and intangible assets, net	190		—		190
Total assets	6,165		989		7,154
2017
Total revenue	$	19,352	$	531	$	19,883
Margin	1,781		29		1,810
Goodwill, and intangible assets, net	212		43		255
Total assets	6,347		2,124		8,471

The following table reconciles margin by segment to consolidated income (loss) before income tax expense (benefit):



	Year Ended December 31,
	2019			2018			2017
	(In millions)
Margin:
Health Plans	$	2,303		$	2,475		$	1,781
Other	—			43			29
Total margin	2,303			2,518			1,810
Add: other operating revenues ⁽¹⁾	621			871			508
Less: other operating expenses ⁽²⁾	(1,880		)	(2,243		)	(2,873		)
Less: loss on sales of subsidiaries, net of gain	—			(15		)	—
Operating income (loss)	1,044			1,131			(555		)
Less: other expenses, net	72			132			57
Income (loss) before income tax expense (benefit)	$	972		$	999		$	(612	)

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(1)	Other operating revenues include premium tax revenue, health insurer fees reimbursed, investment income and other revenue.

(2)

Other operating expenses include general and administrative expenses, premium tax expenses, health insurer fees, depreciation and amortization, impairment losses, and restructuring costs.