HEALTH CARE REFORM

The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (which we collectively refer to as the Health Care Reform Law) established risk spreading premium stabilization programs including a permanent risk adjustment program and temporary risk corridor and reinsurance programs, which we collectively refer to as the 3Rs, effective January 1, 2014. The 3Rs are applicable to certain of our commercial medical insurance products as further discussed in Note 2 to our 2014 Form 10-K. The accompanying condensed consolidated balance sheets include the following amounts associated with the 3Rs at March 31, 2015 and December 31, 2014. Amounts related to the 2015 coverage year are classified as long-term because settlement will exceed 12 months at March 31, 2015.



	March 31, 2015								December 31, 2014
	Risk Adjustment Settlement			Reinsurance Recoverables		Risk Corridor Settlement			Risk Adjustment Settlement			Reinsurance Recoverables		Risk Corridor Settlement
	(in millions)
Premiums receivable	$	131		$	—	$	—		$	131		$	—	$	—
Other current assets	—			535		93			—			586		55
Trade accounts payable and accrued expenses	(89		)	—		(2		)	(89		)	—		(4		)
Net current asset	42			535		91			42			586		51
Other long-term assets	30			47		21			—			—		—
Other long-term liabilities	(32		)	—		(2		)	—			—		—
Net long-term (liability) asset	(2		)	47		19			—			—		—
Total net asset	$	40		$	582	$	110		$	42		$	586	$	51

In September 2015, we expect to pay the federal government approximately $882 million for the annual non-deductible health insurance industry fee attributed to calendar year 2015 in accordance with the Health Care Reform Law. We have recorded a liability for this fee in other current liabilities with a corresponding deferred cost in other current assets in our condensed consolidated financial statements. Amortization of the deferred cost resulted in operating cost expense of approximately $220 million for the three months ended March 31, 2015. For the three months ended March 31, 2014 there was approximately $137 million of operating cost expense resulting from the amortization of the 2014 annual health insurance fee. The remaining deferred cost asset balance was approximately $662 million at March 31, 2015.