Reserves for Claims and performance-Based Arrangements (Tables)

3 Months Ended

Mar. 31, 2020

Activity in reserves for claims and performance-based arrangements for the three months ended March 31, 2020 and 2019, was as follows (in thousands):



	For the Three Months Ended March 31,
	2020								2019
	Services ⁽¹⁾			True Health ⁽³⁾		Total			Services ⁽¹⁾			True Health ⁽³⁾			Total
Beginning balance	$	54,510		$	6,640	$	61,150		$	17,715		$	9,880		$	27,595

Incurred costs related to current year	112,760			23,556		136,316			$	33,777		$	31,498		$	65,275
Incurred costs related to prior year	(638		)	111		(527		)	6,879			6,259			13,138
Paid costs related to current year	77,351			14,883		92,234			28,684			11,682			40,366
Paid costs related to prior year	9,820			5,702		15,522			6,871			7,156			14,027
Change during the year	24,951			3,082		28,033			5,101			18,919			24,020

Other adjustments ⁽²⁾	(173		)	—		(173		)	(438		)	(21,158		)	(21,596		)
Ending balance	$	79,288		$	9,722	$	89,010		$	22,378		$	7,641		$	30,019

⁽¹⁾ Costs incurred to provide specialty care management services are recorded within cost of revenue in our statement of operations.

⁽²⁾ Other adjustments to reserves for claims and performance-based arrangements for Services reflect changes in accrual for amounts payable to facilities and amounts owed to our payer partners for claims paid on our behalf. Other adjustments related to the True Health segment represent premiums received less administrative expenses related to the reinsurance agreement for amounts in 2019. Refer to Note 10 for additional information about the reinsurance agreement.

⁽³⁾ There is no single or common claim frequency metric used in the health care industry. The Company believes a relevant metric for its health insurance business is the number of customers for whom an insured medical claim was paid. Number of claims processed for the three months ended March 31, 2020 and 2019 were 112,032 and 86,368, respectively.