v3.24.2
Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
We report our results of operations in the following four reportable segments: Health Benefits, CarelonRx, Carelon Services and Corporate & Other. During the fourth quarter of 2023, we moved our Carelon Global Solutions international businesses from the Corporate & Other reportable segment to the Carelon Services reportable segment. All prior period reportable segment information has been reclassified for comparability to conform to the current presentation.
Our Health Benefits segment offers a comprehensive suite of health plans and services to our Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid and FEHB program members. Our Health Benefits segment also includes our National Government Services business. The Health Benefits segment offers health products on a full-risk basis; provides a broad array of administrative managed care services to our fee-based customers; and provides a variety of specialty and other insurance products and services such as stop loss, dental, vision and supplemental health insurance benefits.
Our CarelonRx segment includes our pharmacy services business. CarelonRx markets and offers pharmacy services to our affiliated health plan customers, as well as to external customers outside of the health plans we own. CarelonRx offers a comprehensive pharmacy services portfolio, which includes all core pharmacy services, such as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database and member services, as well as infusion services and injectable therapies.
Our Carelon Services segment offers a broad array of healthcare related services and capabilities to internal and external customers including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services and subrogation services, as well as health and wellness programs. At the end of 2023, Carelon Services integrated Carelon Global Solutions into the Carelon family of offerings. The companies under Carelon Global Solutions have been providing services related to data management, information technology and business operations since 2019 and were previously included within our Corporate & Other segment.
Our Corporate & Other segment includes our businesses that do not individually meet the quantitative threshold for an operating segment, as well as corporate expenses not allocated to our other reportable segments.
We define operating revenues to include premium income, product revenue and service fees. Operating revenues are derived from premiums and fees received, primarily from the sale and administration of health benefits and pharmacy products and services. Operating gain is calculated as total operating revenue less benefit expense, cost of products sold and operating expense.
Affiliated revenues represent revenues or costs for services provided to our subsidiaries by CarelonRx and Carelon Services, in addition to certain administrative and other services provided by our international businesses, which are recorded at cost or management’s estimate of fair market value. These affiliated revenues are eliminated in consolidation.
Financial data by reportable segment for the three and six months ended June 30, 2024 and 2023 is as follows:
Carelon
Health
Benefits		CarelonRxCarelon
Services		TotalCorporate
& Other		EliminationsTotal
Three Months Ended June 30, 2024
Premiums$35,096 $— $794 $794 $— $(474)$35,416 
Product revenue— 5,530 — 5,530 — — 5,530 
Service fees2,063 1 196 197 17 — 2,277 
Operating revenue - unaffiliated37,159 5,531 990 6,521 17 (474)43,223 
Operating revenue - affiliated— 3,243 3,555 6,798 105 (6,903)— 
Operating revenue - total$37,159 $8,774 $4,545 $13,319 $122 $(7,377)$43,223 
Operating gain (loss)$2,145 $497 $208 $705 $(85)$— $2,765 
Depreciation and amortization of property and equipment— — — — 234 — — 
Three Months Ended June 30, 2023
Premiums$36,233 $— $429 $429 $— $(73)$36,589 
Product revenue— 4,859 — 4,859 — 4,859 
Service fees1,767 — 201 201 (39)1,929 
Operating revenue - unaffiliated38,000 4,859 630 5,489 (39)(73)43,377 
Operating revenue - affiliated— 3,607 2,974 6,581 151 (6,732)— 
Operating revenue - total$38,000 $8,466 $3,604 $12,070 $112 $(6,805)$43,377 
Operating gain (loss)$2,138 $496 $157 $653 $(163)$— $2,628 
Depreciation and amortization of property and equipment— — — — 221 — — 
Carelon
Health
Benefits		CarelonRxCarelon
Services		TotalCorporate
& Other		EliminationsTotal
Six Months Ended June 30, 2024
Premiums$70,478 $— $1,202 $1,202 $— $(568)$71,112 
Product revenue— 10,029 — 10,029 — 10,029 
Service fees3,939 2 393 395 21 4,355 
Operating revenue - unaffiliated74,417 10,031 1,595 11,626 21 (568)85,496 
Operating revenue - affiliated— 6,810 6,959 13,769 228 (13,997)— 
Operating revenue - total$74,417 $16,841 $8,554 $25,395 $249 $(14,565)$85,496 
Operating gain (loss)$4,432 $1,020 $498 $1,518 (169)— 5,781 
Depreciation and amortization of property and equipment— — — — 456 — 
Six Months Ended June 30, 2023
Premiums$71,767 $— $839 $839 $— $(149)$72,457 
Product revenue— 8,881 — 8,881 — 8,881 
Service fees3,513 — 409 409 15 3,937 
Operating revenue - unaffiliated75,280 8,881 1,248 10,129 15 (149)85,275 
Operating revenue - affiliated— 7,609 5,816 13,425 188 (13,613)— 
Operating revenue - total$75,280 $16,490 $7,064 $23,554 $203 $(13,762)$85,275 
Operating gain (loss)
$4,287 $1,008 $386 $1,394 $(222)$— $5,459 
Depreciation and amortization of property and equipment— — — — 439 — — 
For segment reporting, we present all capitated risk arrangements on a gross basis; therefore, eliminations also include adjustments for unaffiliated capitated risk arrangements that are recognized on a net basis under GAAP, as well as affiliated eliminations.
A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three and six months ended June 30, 2024 and 2023 is as follows:
 Three Months Ended 
 June 30		Six Months Ended 
 June 30
 2024202320242023
Reportable segments’ operating revenue$43,223 $43,377 $85,496 $85,275 
Net investment income508 416 973 803 
Net losses on financial instruments(85)(121)(246)(234)
Gain on sale of business
240 — 240 — 
Total revenues$43,886 $43,672 $86,463 $85,844 
A reconciliation of income before income tax expense to reportable segments’ operating gain included in our consolidated statements of income for the three and six months ended June 30, 2024 and 2023 is as follows:
 Three Months Ended 
 June 30		Six Months Ended 
 June 30
 2024202320242023
Income before income tax expense$2,986 $2,441 $5,925 $5,060 
Net investment income(508)(416)(973)(803)
Net losses on financial instruments85 121 246 234 
Gain on sale of business
(240)— (240)— 
Interest expense280 261 545 512 
Amortization of other intangible assets162 221 278 456 
Reportable segments’ operating gain$2,765 $2,628 $5,781 $5,459