Medical Claims and Benefits Payable

3 Months Ended

Mar. 31, 2020

Other Liabilities Disclosure [Abstract]

The following table provides the details of our medical claims and benefits payable as of the dates indicated.



	March 31, 2020		December 31, 2019
	(In millions)
Fee-for-service claims incurred but not paid (“IBNP”)	$	1,444	$	1,406
Pharmacy payable	150		126
Capitation payable	62		55
Other	325		267
	$	1,981	$	1,854

“Other” medical claims and benefits payable includes 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 income. Non-risk provider payables amounted to $116 million and $132 million as of March 31, 2020, and December 31, 2019, 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 amounts by which our original estimate of medical claims and benefits payable at the beginning of the period were more than the actual amount of the liability, based on information (principally the payment of claims) developed since that liability was first reported.



	Three Months Ended March 31,
	2020			2019
	(In millions)
Medical claims and benefits payable, beginning balance	$	1,854		$	1,961
Components of medical care costs related to:
Current period	3,817			3,560
Prior periods	(101		)	(189		)
Total medical care costs	3,716			3,371
Change in non-risk and other provider payables	(10		)	171
Payments for medical care costs related to:
Current period	2,274			2,197
Prior periods	1,305			1,311
Total paid	3,579			3,508
Medical claims and benefits payable, ending balance	$	1,981		$	1,995

Our estimates of medical claims and benefits payable recorded at December 31, 2019, and 2018 developed favorably by approximately $101 million and $189 million as of March 31, 2020, and 2019, respectively.

The favorable prior year development recognized in the three months ended March 31, 2020, 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 2020, as claims payments were processed, were lower than our original estimates in 2019.