MEDICAL COSTS PAYABLE

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

MEDICAL COSTS PAYABLE

MEDICAL COSTS PAYABLE

The following table shows the components of the change in medical costs payable for the three months ended March 31 (in thousands):

	March 31,
	2023		2022
Medical costs payable - January 1	$	411,753	$	263,187
Incurred related to:
Current year	656,599		672,697
Prior year	30,354		(76)
Total incurred	686,953		672,621
Paid related to:
Current year	338,907		367,504
Prior year	301,334		161,143
Total paid	640,241		528,647
Medical costs payable - March 31	$	458,465	$	407,161

Medical costs payable attributable to prior years increased by $30.4 million and decreased by $0.1 million for the three months ended March 31, 2023 and 2022, respectively. Medical costs payable estimates are adjusted as additional information becomes known regarding claims; there were no significant changes to estimation methodologies during the periods.

The table below details the components making up the medical costs payable as of March 31 (in thousands):

	March 31,
	2023		2022
Claims unpaid	$	52,502	$	63,329
Provider incentive payable	61,748		40,691
Claims adjustment expense liability	5,823		4,918
Incurred but not reported (IBNR)	338,392		298,223
Total medical costs payable	$	458,465	$	407,161

Medical costs payable are primarily related to the current year. The Company has recorded claims adjustment expense as a component of operating costs in the Condensed Consolidated Statements of Income (Loss).