Medical Claims and Related Payables

12 Months Ended

Dec. 31, 2025


NOTE 8. 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,
	2025		2024		2023
Medical claims and related payables, beginning of the year	$	918,394	$	723,071	$	339,749
Components of incurred costs related to:
Current year	5,953,295		5,798,709		3,956,874
Prior years	24,611		43,821		51,785
Discontinued operations - current year	—		—		263,214
Discontinued operations - prior years	—		—		7,008
	5,977,906		5,842,530		4,278,881
Claims paid related to:
Current year	(5,040,008)		(4,878,351)		(3,237,050)
Prior years	(961,008)		(768,856)		(344,269)
Discontinued operations - current year	—		—		(263,215)
Discontinued operations - prior years	—		—		(51,025)
	(6,001,016)		(5,647,207)		(3,895,559)
Medical claims and related payables, end of the year	$	895,284	$	918,394	$	723,071

Beginning balance of medical claims and related payables disclosed above for December 31, 2023, include $45.9 million that are presented as current liabilities held for sale and discontinued operations. Ending balance of medical claims and related payables disclosed above for December 31, 2025 and 2024, includes $34.5 million and $13.3 million, respectively, 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.