BENEFITS PAYABLE

9 Months Ended

Sep. 30, 2020

On a consolidated basis, activity in benefits payable, was as follows for the nine months ended September 30, 2020 and 2019:


	For the nine months ended September 30,
		2020		2019
	(in millions)
Balances, beginning of period		$	6,004	$	4,862

Less: Reinsurance recoverables		(68)		(95)
Balances, beginning of period, net		5,936		4,767

Incurred related to:
Current year		45,693		40,499
Prior years		(278)		(331)
Total incurred		45,415		40,168
Paid related to:
Current year		(37,810)		(34,625)
Prior years		(5,334)		(4,158)
Total paid		(43,144)		(38,783)

Reinsurance recoverable		1		68
Balances, end of period		$	8,208	$	6,220

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.

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 September 30, 2020 and 2019, 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.

Retail Segment

Activity in benefits payable for our Retail segment was as follows for the nine months ended September 30, 2020 and 2019:


	For the nine months ended September 30,
		2020		2019
	(in millions)
Balances, beginning of period		$	5,363	$	4,338

Less: Reinsurance recoverables		(68)		(95)
Balances, beginning of period, net		5,295		4,243

Incurred related to:
Current year		42,186		36,762
Prior years		(235)		(366)
Total incurred		41,951		36,396
Paid related to:
Current year		(34,946)		(31,476)
Prior years		(4,759)		(3,634)
Total paid		(39,705)		(35,110)

Reinsurance recoverable		1		68
Balances, end of period		$	7,542	$	5,597

At September 30, 2020, benefits payable for our Retail segment included IBNR of approximately $4.6 billion, primarily associated with claims incurred in 2020.

Group and Specialty Segment

Activity in benefits payable for our Group and Specialty segment, was as follows for the nine months ended September 30, 2020 and 2019:


	For the nine months ended September 30,
		2020		2019
	(in millions)
Balances, beginning of period		$	641	$	517




Incurred related to:
Current year		3,929		4,142
Prior years		(43)		35
Total incurred		3,886		4,177
Paid related to:
Current year		(3,286)		(3,547)
Prior years		(575)		(524)
Total paid		(3,861)		(4,071)


Balances, end of period		$	666	$	623

At September 30, 2020, benefits payable for our Group and Specialty segment included IBNR of approximately $576 million, primarily associated with claims incurred in 2020.

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

	September 30,
	2020
Net outstanding liabilities	(in millions)
Retail	$	7,541
Group and Specialty	666


Benefits payable, net of reinsurance	8,207

Reinsurance recoverable on unpaid claims
Retail	1









Total benefits payable, gross	$	8,208