Medical payables

3 Months Ended

Mar. 31, 2017

Health Care Organizations [Abstract]

Medical payables

Medical payables

The following table includes estimates for the cost of professional medical services provided by non-employed physicians and other providers, as well as inpatient and other ancillary costs, other than California's non-global risk contracts. The Company does not include inpatient and other ancillary costs for non-global risk contracts held in California, as state regulation does not allow medical group entities to assume risk for inpatient services. Healthcare costs payable are included in medical payables in the condensed consolidated balance sheet.

The following table shows the components of changes in health care costs payable for the three months ended March 31, 2017: 

	Three months ended
	March 31, 2017
Healthcare costs payable, beginning of the period	$	214,275
Add: Components of incurred health care costs
Current year	467,683
Prior years	421
Total incurred health care costs	468,104
Less: Claims paid
Current year	247,723
Prior years	172,693
Total claims paid	420,416
Healthcare costs payable, end of the period	$	261,963

The Company’s prior year estimates of healthcare costs payable resulted in medical claims being settled for different amounts than originally estimated. When significant increases (decreases) in prior-year health care cost estimates occur that the Company believes significantly impact its current year operating results, the Company discloses that amount as unfavorable (favorable) development of prior-year’s health care cost estimates. Actual claim payments for prior year services have not been materially different from the Company’s year-end estimates.