BENEFITS PAYABLE

6 Months Ended

Jun. 30, 2021

On a consolidated basis, activity in benefits payable, was as follows for the six months ended June 30, 2021 and 2020:


	For the six months ended June 30,
		2021		2020
	(in millions)
Balances, beginning of period		$	8,143	$	6,004

Less: Reinsurance recoverables		—		(68)
Balances, beginning of period, net		8,143		5,936
Acquisitions		42		—
Incurred related to:
Current year		35,164		30,039
Prior years		(719)		(235)
Total incurred		34,445		29,804
Paid related to:
Current year		(27,556)		(22,665)
Prior years		(6,589)		(5,098)
Total paid		(34,145)		(27,763)

Reinsurance recoverable		—		3
Balances, end of period		$	8,485	$	7,980

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.

The higher prior year favorable development for the six months ended June 20, 2021 was primarily attributable to the reversal of actions taken in 2020, including the suspension of certain financial recovery programs for a period of time. The suspension during 2020 was intended to provide financial and administrative relief for providers facing unprecedented strain as a result of the COVID-19 pandemic.

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, 2021 and 2020, 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 six months ended June 30, 2021 and 2020:


	For the six months ended June 30,
		2021		2020
	(in millions)
Balances, beginning of period		$	7,428	$	5,363

Less: Reinsurance recoverables		—		(68)
Balances, beginning of period, net		7,428		5,295
Acquisitions		42		—
Incurred related to:
Current year		32,986		27,921
Prior years		(619)		(205)
Total incurred		32,367		27,716
Paid related to:
Current year		(25,953)		(21,063)
Prior years		(5,990)		(4,528)
Total paid		(31,943)		(25,591)

Reinsurance recoverable		—		3
Balances, end of period		$	7,894	$	7,423

At June 30, 2021, benefits payable for our Retail segment included IBNR of approximately $4.9 billion, primarily associated with claims incurred in 2021.

Group and Specialty Segment

Activity in benefits payable for our Group and Specialty segment was as follows for the six months ended June 30, 2021 and 2020:


	For the six months ended June 30,
		2021		2020
	(in millions)
Balances, beginning of period		$	715	$	641




Incurred related to:
Current year		2,492		2,434
Prior years		(100)		(30)
Total incurred		2,392		2,404
Paid related to:
Current year		(1,917)		(1,918)
Prior years		(599)		(570)
Total paid		(2,516)		(2,488)


Balances, end of period		$	591	$	557

At June 30, 2021, benefits payable for our Group and Specialty segment included IBNR of approximately $514 million, primarily associated with claims incurred in 2021.