BENEFITS PAYABLE

6 Months Ended

Jun. 30, 2019

On a consolidated basis, activity in benefits payable, was as follows for the six months ended June 30, 2019 and 2018:



	For the six months ended June 30,
	2019			2018
	(in millions)
Balances, beginning of period	$	4,862		$	4,668
Less: Reinsurance recoverables	(95		)	(70		)
Balances, beginning of period, net	4,767			4,598
Incurred related to:
Current year	27,086			23,543
Prior years	(275		)	(338		)
Total incurred	26,811			23,205
Paid related to:
Current year	(21,700		)	(18,914		)
Prior years	(4,108		)	(3,897		)
Total paid	(25,808		)	(22,811		)
Reinsurance recoverable	72			86
Less: Held-for-sale	—			(58		)
Balances, end of period	$	5,842		$	5,020

Amounts incurred related to prior periods vary from previously estimated liabilities as the claims ultimately are settled. Negative amounts reported for incurred related to prior years result from claims being ultimately settled for amounts less than originally estimated (favorable development).

Our reserving practice is to consistently recognize the actuarial best estimate of our ultimate liability for claims. Actuarial standards require the use of assumptions based on moderately adverse experience, which generally results in favorable reserve development, or reserves that are considered redundant.

Benefits expense excluded from the previous table related to our long duration policies was as follows for the six months ended June 30, 2019 and 2018. The Other Businesses category was related to our closed-block of commercial long-term care insurance policies, which were sold in 2018. We also exited our Individual Commercial business beginning January 1, 2018.



	For the six months ended June 30,
	2019		2018
	(in millions)
Future policy benefits:
Individual Commercial	$	—	$	(14	)
Other Businesses	—		15
Total future policy benefits	$	—	$	1

Incurred and Paid Claims Development

The following discussion provides information about incurred and paid claims development for our Retail and Group and Specialty segments as of June 30, 2019 and 2018, net of reinsurance, and the total estimate of benefits payable for claims incurred but not reported, or IBNR, included within the net incurred claims amounts. Our Individual Commercial segment incurred claims development was favorable by $55 million for the six months ended June 30, 2018.

Retail Segment

Activity in benefits payable for our Retail segment was as follows for the six months ended June 30, 2019 and 2018:



	For the six months ended June 30,
	2019			2018
	(in millions)
Balances, beginning of period	$	4,338		$	3,963
Less: Reinsurance recoverables	(95		)	(70		)
Balances, beginning of period, net	4,243			3,893
Incurred related to:
Current year	24,657			21,069
Prior years	(311		)	(247		)
Total incurred	24,346			20,822
Paid related to:
Current year	(19,826		)	(17,061		)
Prior years	(3,592		)	(3,327		)
Total paid	(23,418		)	(20,388		)
Reinsurance recoverable	72			86
Balances, end of period	$	5,243		$	4,413

At June 30, 2019, benefits payable for our Retail segment included IBNR of approximately $3.2 billion, primarily associated with claims incurred in 2019.

Group and Specialty Segment

Activity in benefits payable for our Group and Specialty segment, was as follows for the six months ended June 30, 2019 and 2018:



	For the six months ended June 30,
	2019			2018
	(in millions)
Balances, beginning of period	$	517		$	568
Incurred related to:
Current year	2,693			2,665
Prior years	36			(34		)
Total incurred	2,729			2,631
Paid related to:
Current year	(2,131		)	(2,094		)
Prior years	(516		)	(496		)
Total paid	(2,647		)	(2,590		)
Balances, end of period	$	599		$	609

At June 30, 2019, benefits payable for our Group and Specialty segment included IBNR of approximately $505 million, primarily associated with claims incurred in 2019.

Reconciliation to Consolidated

The reconciliation of the net incurred and paid claims development tables to benefits payable in the consolidated

statement of financial position is as follows:



Reconciliation of the Disclosure of Incurred and Paid Claims Development to Benefits Payable, net of reinsurance

	June 30,
	2019
Net outstanding liabilities	(in millions)
Retail	$	5,171
Group and Specialty	599
Benefits payable, net of reinsurance	5,770

Reinsurance recoverable on unpaid claims
Retail	72
Total benefits payable, gross	$	5,842