Accounts Receivable, Net

9 Months Ended

Sep. 30, 2023

Note 3 – Accounts Receivable, Net

The following amounts were included within Accounts receivable, net:


(In millions)	September 30, 2023		December 31, 2022
Noninsurance customer receivables	$	8,384	$	6,899
Pharmaceutical manufacturers receivables	8,188		7,108
Insurance customer receivables	2,256		2,963
Other receivables	255		248


Total	$	19,083	$	17,218

These accounts receivable are reported net of our allowances of $3.3 billion as of September 30, 2023 and $1.9 billion as of December 31, 2022. These allowances include contractual allowances for certain rebates receivable with pharmaceutical manufacturers and certain accounts receivable from third-party payors, discounts and claims adjustments issued to customers in the form of client credits, an allowance for current expected credit losses and other non-credit adjustments.The Company's allowance for current expected credit losses was $96 million as of September 30, 2023 and $86 million as of December 31, 2022.

Accounts Receivable Factoring Facility

In July 2023, the Company entered into an uncommitted factoring facility (the "Facility") under which certain accounts receivable may be sold on a non-recourse basis to a financial institution. The Facility's total capacity is $1.0 billion with an initial term of two years, followed by automatic one year renewal terms unless terminated by either party. The transactions under the Facility are accounted for as a sale and recorded as a reduction to accounts receivable in the Consolidated Balance Sheets because control of, and risk related to, the accounts receivable are transferred to the financial institution. Although the sale is made without recourse, we provide collection services related to the transferred assets. Amounts associated with this Facility are reflected within Net cash provided by operating activities in the Company's Consolidated Statements of Cash Flows. Factoring fees paid under this Facility are reflected in Interest expense and other in the Consolidated Statements of Income.

During the three months ended September 30, 2023 we sold $1.0 billion and factoring fees paid were not material. As of September 30, 2023, there were $253 million of sold accounts receivable that have not been collected from manufacturers and have been removed from the Company's Consolidated Balance Sheets. There were $512 million of amounts received from manufacturers but not yet remitted to the financial institution. Such amounts are recorded within Accrued expenses and other liabilities on the Consolidated Balance Sheets.