XML 29 R13.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Health Care Costs Payable
 3 Months Ended
Mar. 31, 2024
Health Care And Other Insurance Liabilities [Abstract]  
Health Care Costs Payable Health Care Costs Payable
The following table shows the components of the change in health care costs payable during the three months ended March 31, 2024 and 2023:
Three Months Ended
March 31,
In millions20242023
Health care costs payable, beginning of the period$12,049 $10,142 
Less: Reinsurance recoverables5 5 
Less: Impact of discount rate on long-duration insurance reserves (1)
(23)8 
Health care costs payable, beginning of the period, net12,067 10,129 
Add: Components of incurred health care costs
  Current year28,212 21,068 
  Prior years(479)(693)
Total incurred health care costs (2)
27,733 20,375 
Less: Claims paid
  Current year16,263 11,957 
  Prior years9,150 7,645 
Total claims paid25,413 19,602 
Health care costs payable, end of the period, net14,387 10,902 
Add: Reinsurance recoverables4 5 
Add: Impact of discount rate on long-duration insurance reserves (1)
(23)(12)
Health care costs payable, end of the period$14,368 $10,895 
_____________________________________________
(1)Reflects the difference between the current discount rate and the locked-in discount rate on long-duration insurance reserves which is recorded within accumulated other comprehensive loss on the unaudited condensed consolidated balance sheets.
(2)Total incurred health care costs for the three months ended March 31, 2024 and 2023 in the table above exclude $23 million and $22 million, respectively, of health care costs recorded in the Health Care Benefits segment that are included in other insurance liabilities on the unaudited condensed consolidated balance sheets and $47 million and $51 million, respectively, of health care costs recorded in the Corporate/Other segment that are included in other insurance liabilities on the unaudited condensed consolidated balance sheets.

The Company’s estimates of prior years’ health care costs payable decreased by $479 million and $693 million, respectively, in the three months ended March 31, 2024 and 2023, because claims were settled for amounts less than originally estimated (i.e., the amount of claims incurred was lower than originally estimated), primarily due to lower health care cost trends as well as the actual claim submission time being faster than originally assumed (i.e., the Company’s completion factors were higher than originally assumed) in estimating health care costs payable at the end of the prior year.

At March 31, 2024, the Company’s liabilities for the ultimate cost of (i) services rendered to the Company’s Insured members but not yet reported to the Company and (ii) claims which have been reported to the Company but not yet paid (collectively, “IBNR”) plus expected development on reported claims totaled approximately $11.0 billion. The majority of the Company’s liabilities for IBNR plus expected development on reported claims at March 31, 2024 related to the current year.