Medical Claims and Related Payables

12 Months Ended

Dec. 31, 2022

Insurance [Abstract]

Medical Claims and Related Payables

NOTE 9. Medical Claims and Related Payables

Medical claims and related payables include estimates for amounts owed for claims incurred for services provided to members by various providers. Changes in amounts reported for medical claims related to prior years result from claims being paid at amounts different than originally estimated. Liabilities are continually reviewed and re-estimated as information regarding actual claim payments becomes known. This information is compared to the originally established liability at year end. The following table presents the components of changes in medical claims and related payables (in thousands):

	December 31,
	2022			2021			2020
Medical claims and related payables, beginning of the year	$	239,014		$	164,161		$	121,779
Components of incurred costs related to:
Current year		2,387,374			1,645,137			1,026,940
Prior years		12,424			2,522			(5,063	)
Discontinued operations - current year		—			1,234			85,732
Discontinued operations - prior years		34			(2,099	)		(1,543	)
		2,399,832			1,646,794			1,106,066
Claims paid related to:
Current year		(2,051,036	)		(1,416,404	)		(870,979	)
Prior years		(247,873	)		(151,128	)		(94,868	)
Discontinued operations - current year		—			(1,234	)		(80,754	)
Discontinued operations - prior years		(189	)		(3,175	)		(17,083	)
		(2,299,098	)		(1,571,941	)		(1,063,684	)
Medical claims and related payables, end of the year	$	339,748		$	239,014		$	164,161

Beginning and ending balances of medical claims and related payables disclosed above for December 31, 2020, include $1.1 million and $1.3 million, respectively, that are presented as current liabilities held for sale and discontinued operations. As of December 31, 2021 and 2020, medical claims and related payables also include $0.2 million and $4.1 million, respectively, of claims liabilities associated with certain divested California businesses for which the Company has retained the liability for claims incurred prior to the date of divestiture. Ending balance of medical claims and related payables disclosed above for December 31, 2022, includes $7.0 million that is recoverable from other parties under risk sharing arrangements and is presented as prepaid expenses and other current assets, net in the consolidated balance sheets.