The following is information about incurred and cumulative paid health care claims development as of December 31, 2024, net of reinsurance, and the total IBNR liabilities plus expected development on reported claims included within the net incurred claims amounts. See Note 1 ‘‘Significant Accounting Policies’’ for information on how the Company estimates IBNR reserves and health care costs payable as well as changes to those methodologies, if any. The Company’s estimate of IBNR liabilities is primarily based on trend and completion factors. Claim frequency is not used in the calculation of the Company’s liability. In addition, it is impracticable to disclose claim frequency information for health care claims due to the Company’s inability to gather consistent claim frequency information across its multiple claims processing systems. Any claim frequency count disclosure would not be comparable across the Company’s different claim processing systems and would not be consistent from period to period based on the volume of claims processed through each system. As a result, health care claim count frequency is not included in the disclosures below.


In millions	Incurred Health Care Claims, Net of Reinsurance For the Years Ended December 31,
Date of Service	2023		2024
	(Unaudited)
2023	$	82,362	$	81,559
2024			109,458
	Total		$	191,017

In millions	Cumulative Paid Health Care Claims, Net of Reinsurance For the Years Ended December 31,
Date of Service	2023		2024
	(Unaudited)
2023	$	72,175	$	81,044
2024			97,155
	Total		$	178,199
All outstanding liabilities for health care costs payable prior to 2023, net of reinsurance			128
Total outstanding liabilities for health care costs payable, net of reinsurance			$	12,946

At December 31, 2024, the Company’s liabilities for IBNR plus expected development on reported claims totaled approximately $11.3 billion. Substantially all of the Company’s liabilities for IBNR plus expected development on reported claims at December 31, 2024 related to the current calendar year.


In millions	December 31, 2024
Short-duration health care costs payable, net of reinsurance	$	12,946
Reinsurance recoverables	81

Insurance lines other than short duration	282
Other non-insurance health care costs payable	1,755
Total health care costs payable	$	15,064


In millions	2024		2023		2022
Health care costs payable, beginning of period	$	12,049	$	10,142	$	8,678
Less: Reinsurance recoverables	5		5		8
Less: Impact of discount rate on long-duration insurance reserves (1)	(23)		8		—
Health care costs payable, beginning of period, net	12,067		10,129		8,670
Acquisition, net	—		1,098		—

Add: Components of incurred health care costs
Current year	115,774		86,639		71,399
Prior years	(947)		(685)		(654)
Total incurred health care costs (2)	114,827		85,954		70,745
Less: Claims paid
Current year	101,583		75,529		61,640
Prior years	10,327		9,585		7,646
Total claims paid	111,910		85,114		69,286

Health care costs payable, end of period, net	14,984		12,067		10,129
Add: Reinsurance recoverables	81		5		5
Add: Impact of discount rate on long-duration insurance reserves (1)	(1)		(23)		8
Health care costs payable, end of period	$	15,064	$	12,049	$	10,142

(2)Total incurred health care costs for the years ended December 31, 2024, 2023 and 2022 in the table above exclude $107 million, $83 million and $79 million, respectively, of health care costs recorded in the Health Care Benefits segment that are included in other insurance liabilities on the consolidated balance sheets and $187 million, $210 million and $249 million, respectively, of health care costs recorded in the Corporate/Other segment that are included in other insurance liabilities on the consolidated balance sheets.

The Company’s estimates of prior years’ health care costs payable decreased by $947 million, $685 million and $654 million in 2024, 2023 and 2022, respectively, 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. This development does not directly correspond to an increase in the Company’s operating results as these reductions were offset by estimated current period health care costs when the Company established the estimate of the current year health care costs payable.