Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) claims liability, net

  
  
7.Health Care Costs Payable  
The following is information about incurred and cumulative paid health care claims development as of December 31, 2021, 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.  
The information about incurred and paid health care claims development for the year ended December 31, 2020 is presented as required unaudited supplemental information.

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| In millions | Incurred Health Care Claims,Net of ReinsuranceFor the Years Ended December 31, |
| Date of Service | 2020 |  | 2021 |
|  | (Unaudited) |  |  |
| 2020 | $ | 54,529  |  |  | $ | 53,804  |  |
| 2021 |  |  | 62,830  |  |
|  | Total |  | $ | 116,634  |  |
|  |  |  |  |
| In millions | Cumulative Paid Health Care Claims,Net of ReinsuranceFor the Years Ended December 31, |
| Date of Service | 2020 |  | 2021 |
|  | (Unaudited) |  |  |
| 2020 | $ | 47,567  |  |  | $ | 53,590  |  |
| 2021 |  |  | 54,600  |  |
|  | Total |  | $ | 108,190  |  |
| All outstanding liabilities for health care costs payable prior to 2020, net of reinsurance |  | 130  |  |
| Total outstanding liabilities for health care costs payable, net of reinsurance |  | $ | 8,574  |  |

  
At December 31, 2021, the Company’s liabilities for IBNR plus expected development on reported claims totaled approximately $6.6 billion. Substantially all of the Company’s liabilities for IBNR plus expected development on reported claims at December 31, 2021 related to the current calendar year.  
The reconciliation of the December 31, 2021 health care net incurred and paid claims development tables to the health care costs payable liability on the consolidated balance sheet is as follows:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| In millions | December 31, 2021 |
| Short-duration health care costs payable, net of reinsurance | $ | 8,574  |  |
| Reinsurance recoverables | 8  |  |
| Premium deficiency reserve | 16  |  |
| Insurance lines other than short duration | 210  |  |
| Total health care costs payable | $ | 8,808  |  |

   
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