Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2024 | Oct. 11, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-16751 | |
Entity Registrant Name | ELEVANCE HEALTH, INC. | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-2145715 | |
Entity Address, Address Line One | 220 Virginia Avenue | |
Entity Address, City or Town | Indianapolis | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46204 | |
City Area Code | 833 | |
Local Phone Number | 401-1577 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | ELV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 231,922,815 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001156039 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 7,866 | $ 6,526 |
Fixed maturity securities (amortized cost of $28,739 and $30,446; allowance for credit losses of $2 and $4) | 28,954 | 29,614 |
Equity securities | 1,113 | 229 |
Premium receivables | 7,209 | 7,902 |
Self-funded receivables | 5,135 | 4,558 |
Other receivables | 6,055 | 5,405 |
Other current assets | 5,949 | 5,795 |
Assets held for sale | 565 | 0 |
Total current assets | 62,846 | 60,029 |
Long-term investments: | ||
Fixed maturity securities (amortized cost of $883 and $890; allowance for credit losses of $0 and $0) | 893 | 876 |
Other invested assets | 9,394 | 6,107 |
Property and equipment, net | 4,505 | 4,359 |
Goodwill | 25,967 | 25,317 |
Other intangible assets | 10,325 | 10,273 |
Other noncurrent assets | 2,603 | 1,967 |
Total assets | 116,533 | 108,928 |
Current liabilities: | ||
Medical claims payable | 15,346 | 16,111 |
Other policyholder liabilities | 4,402 | 5,600 |
Unearned income | 1,793 | 1,402 |
Accounts payable and accrued expenses | 6,255 | 6,910 |
Short-term borrowings | 360 | 225 |
Current portion of long-term debt | 2,100 | 1,649 |
Other current liabilities | 11,614 | 9,894 |
Liabilities held for sale | 163 | 0 |
Total current liabilities | 42,033 | 41,791 |
Long-term debt, less current portion | 24,688 | 23,246 |
Reserves for future policy benefits | 248 | 778 |
Deferred tax liabilities, net | 2,092 | 1,970 |
Other noncurrent liabilities | 3,593 | 1,738 |
Total liabilities | 72,654 | 69,523 |
Commitments and contingencies – Note 11 | ||
Shareholders’ equity | ||
Preferred stock, without par value, shares authorized – 100,000,000; shares issued and outstanding – none | 0 | 0 |
Common stock, par value $0.01, shares authorized – 900,000,000; shares issued and outstanding – 231,929,643 and 233,071,088 | 2 | 2 |
Additional paid-in capital | 9,105 | 8,868 |
Retained earnings | 35,157 | 31,749 |
Accumulated other comprehensive loss | (489) | (1,313) |
Total shareholders’ equity | 43,775 | 39,306 |
Noncontrolling interests | 104 | 99 |
Total equity | 43,879 | 39,405 |
Total liabilities and equity | $ 116,533 | $ 108,928 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost, current | $ 28,739 | $ 30,446 |
Fixed maturities, allowance for credit loss, current | 2 | 4 |
Fixed maturities, amortized cost, noncurrent | 883 | 890 |
Fixed maturities, allowance for credit Loss, noncurrent | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (in shares) | 231,929,643 | 233,071,088 |
Common stock, shares outstanding (in shares) | 231,929,643 | 233,071,088 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Revenues | ||||
Premiums | $ 36,809 | $ 35,259 | $ 107,921 | $ 107,716 |
Total operating revenue | 44,719 | 42,480 | 130,215 | 127,755 |
Net investment income | 551 | 493 | 1,524 | 1,296 |
Net losses on financial instruments | (125) | (124) | (371) | (358) |
(Loss) gain on sale of business | (39) | 0 | 201 | 0 |
Total revenues | 45,106 | 42,849 | 131,569 | 128,693 |
Expenses | ||||
Benefit expense | 32,949 | 30,606 | 94,067 | 92,996 |
Cost of products sold | 5,093 | 4,648 | 13,738 | 12,456 |
Operating expense | 5,269 | 5,470 | 15,221 | 15,088 |
Interest expense | 300 | 259 | 845 | 771 |
Amortization of other intangible assets | 122 | 212 | 400 | 668 |
Total expenses | 43,733 | 41,195 | 124,271 | 121,979 |
Income before income tax expense | 1,373 | 1,654 | 7,298 | 6,714 |
Income tax expense | 365 | 354 | 1,740 | 1,554 |
Net income | 1,008 | 1,300 | 5,558 | 5,160 |
Net loss (income) attributable to noncontrolling interests | 8 | (11) | 4 | (29) |
Shareholders’ net income | $ 1,016 | $ 1,289 | $ 5,562 | $ 5,131 |
Shareholders’ net income per share | ||||
Basic (in dollars per share) | $ 4.38 | $ 5.48 | $ 23.94 | $ 21.70 |
Diluted (in dollars per share) | 4.36 | 5.45 | 23.81 | 21.56 |
Dividends per share (in dollars per share) | $ 1.63 | $ 1.48 | $ 4.89 | $ 4.44 |
Product revenue | ||||
Revenues | ||||
Product and service revenue | $ 5,887 | $ 5,177 | $ 15,916 | $ 14,058 |
Service fees | ||||
Revenues | ||||
Product and service revenue | $ 2,023 | $ 2,044 | $ 6,378 | $ 5,981 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,008 | $ 1,300 | $ 5,558 | $ 5,160 |
Other comprehensive income (loss), net of tax: | ||||
Change in net unrealized losses/gains on investments | 887 | (352) | 805 | (44) |
Change in non-credit component of impairment losses on investments | 0 | 2 | 0 | (1) |
Change in net unrealized gains/losses on cash flow hedges | 2 | 1 | 8 | 16 |
Change in net periodic pension and postretirement costs | 3 | 2 | 11 | 7 |
Change in future policy benefits | (1) | 3 | (2) | 2 |
Foreign currency translation adjustments | 7 | (4) | 2 | (2) |
Other comprehensive income (loss) | 898 | (348) | 824 | (22) |
Net loss (income) attributable to noncontrolling interests | 8 | (11) | 4 | (29) |
Other comprehensive income attributable to noncontrolling interests | 0 | 2 | 0 | 0 |
Total shareholders’ comprehensive income | $ 1,914 | $ 943 | $ 6,386 | $ 5,109 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities | ||||
Net income | $ 5,558 | $ 5,160 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net losses on financial instruments | 371 | 358 | ||
Gain on sale of business | (201) | 0 | ||
Equity in net losses of other invested assets | 15 | 70 | ||
Depreciation and amortization | 995 | 1,321 | ||
Impairment of property and equipment | 103 | 446 | ||
Deferred income taxes | (258) | (361) | ||
Share-based compensation | 220 | 217 | ||
Changes in operating assets and liabilities: | ||||
Receivables, net | (490) | (727) | ||
Other invested assets | (73) | (46) | ||
Other assets | (934) | (936) | ||
Policy liabilities | (1,812) | 333 | ||
Unearned income | 392 | 3,220 | ||
Accounts payable and other liabilities | 928 | 1,717 | ||
Income taxes | 231 | 257 | ||
Other, net | 57 | 3 | ||
Net cash provided by operating activities | 5,102 | 11,032 | ||
Investing activities | ||||
Purchases of investments | (14,706) | (24,337) | ||
Proceeds from sale of investments | 11,611 | 7,830 | ||
Maturities, calls and redemptions from investments | 1,481 | 14,531 | ||
Changes in securities lending collateral | (160) | 55 | ||
Proceeds from sale of subsidiaries, net of cash sold | 399 | 0 | ||
Purchases of subsidiaries, net of cash acquired | (1,124) | (1,570) | ||
Purchases of property and equipment | (934) | (970) | ||
Other, net | (96) | (82) | ||
Net cash used in investing activities | (3,529) | (4,543) | ||
Financing activities | ||||
Proceeds from long-term borrowings | 2,580 | 2,574 | ||
Repayments of long-term borrowings | (800) | (1,908) | ||
Proceeds from short-term borrowings | 210 | 0 | ||
Repayments of short-term borrowings | (75) | (265) | ||
Changes in securities lending payable | 158 | (54) | ||
Changes in bank overdrafts | (172) | (523) | ||
Repurchase and retirement of common stock | (1,089) | (1,748) | ||
Cash dividends | (1,135) | (1,049) | ||
Proceeds from issuance of common stock under employee stock plans | 205 | 112 | ||
Taxes paid through withholding of common stock under employee stock plans | (106) | (99) | ||
Other, net | 9 | 5 | ||
Net cash used in financing activities | (215) | (2,955) | ||
Effect of foreign exchange rates on cash and cash equivalents | 2 | (2) | ||
Change in cash and cash equivalents | 1,360 | 3,532 | ||
Cash and cash equivalents at beginning of period | $ 6,526 | $ 7,387 | ||
Less cash and cash equivalents included in assets held for sale at end of period | (20) | 0 | ||
Cash and cash equivalents at end of period | $ 7,866 | $ 10,919 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2022 | 238 | |||||
Beginning balance at Dec. 31, 2022 | $ 36,330 | $ 2 | $ 9,084 | $ 29,647 | $ (2,490) | $ 87 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,004 | 1,989 | 15 | |||
Other comprehensive income (loss) | 442 | 440 | 2 | |||
Repurchase and retirement of common stock, including excise tax (in shares) | (1.3) | |||||
Repurchase and retirement of common stock, including excise tax | (626) | (51) | (575) | |||
Dividends and dividend equivalents | (354) | (354) | ||||
Issuance of common stock under employee stock plans, net of related tax benefits (in shares) | 0.4 | |||||
Issuance of common stock under employee stock plans, net of related tax benefits | 6 | 6 | ||||
Convertible debenture repurchases, conversions and tax adjustments | (342) | (342) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 237.1 | |||||
Ending balance at Mar. 31, 2023 | 37,460 | $ 2 | 8,697 | 30,707 | (2,050) | 104 |
Beginning balance (in shares) at Dec. 31, 2022 | 238 | |||||
Beginning balance at Dec. 31, 2022 | 36,330 | $ 2 | 9,084 | 29,647 | (2,490) | 87 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 5,160 | |||||
Other comprehensive income (loss) | $ (22) | |||||
Repurchase and retirement of common stock, including excise tax (in shares) | (3.8) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 234.9 | |||||
Ending balance at Sep. 30, 2023 | $ 38,539 | $ 2 | 8,830 | 32,103 | (2,512) | 116 |
Beginning balance (in shares) at Mar. 31, 2023 | 237.1 | |||||
Beginning balance at Mar. 31, 2023 | 37,460 | $ 2 | 8,697 | 30,707 | (2,050) | 104 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,856 | 1,853 | 3 | |||
Other comprehensive income (loss) | (116) | (116) | ||||
Repurchase and retirement of common stock, including excise tax (in shares) | (1.4) | |||||
Repurchase and retirement of common stock, including excise tax | (652) | (52) | (600) | |||
Dividends and dividend equivalents | (352) | (352) | ||||
Issuance of common stock under employee stock plans, net of related tax benefits (in shares) | 0.2 | |||||
Issuance of common stock under employee stock plans, net of related tax benefits | 116 | 116 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 235.9 | |||||
Ending balance at Jun. 30, 2023 | 38,312 | $ 2 | 8,761 | 31,608 | (2,166) | 107 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,300 | 1,289 | 11 | |||
Other comprehensive income (loss) | (348) | (346) | (2) | |||
Repurchase and retirement of common stock, including excise tax (in shares) | (1.1) | |||||
Repurchase and retirement of common stock, including excise tax | (485) | (40) | (445) | |||
Dividends and dividend equivalents | (349) | (349) | ||||
Issuance of common stock under employee stock plans, net of related tax benefits (in shares) | 0.1 | |||||
Issuance of common stock under employee stock plans, net of related tax benefits | 109 | 109 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 234.9 | |||||
Ending balance at Sep. 30, 2023 | 38,539 | $ 2 | 8,830 | 32,103 | (2,512) | 116 |
Beginning balance (in shares) at Dec. 31, 2023 | 233.1 | |||||
Beginning balance at Dec. 31, 2023 | 39,405 | $ 2 | 8,868 | 31,749 | (1,313) | 99 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,249 | 2,246 | 3 | |||
Other comprehensive income (loss) | (52) | (52) | ||||
Repurchase and retirement of common stock, including excise tax (in shares) | (1.1) | |||||
Repurchase and retirement of common stock, including excise tax | (569) | (44) | (525) | |||
Dividends and dividend equivalents | (382) | (382) | ||||
Issuance of common stock under employee stock plans, net of related tax benefits (in shares) | 0.5 | |||||
Issuance of common stock under employee stock plans, net of related tax benefits | 59 | 59 | ||||
Ending balance (in shares) at Mar. 31, 2024 | 232.5 | |||||
Ending balance at Mar. 31, 2024 | 40,710 | $ 2 | 8,883 | 33,088 | (1,365) | 102 |
Beginning balance (in shares) at Dec. 31, 2023 | 233.1 | |||||
Beginning balance at Dec. 31, 2023 | 39,405 | $ 2 | 8,868 | 31,749 | (1,313) | 99 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 5,558 | |||||
Other comprehensive income (loss) | $ 824 | |||||
Repurchase and retirement of common stock, including excise tax (in shares) | (2.1) | |||||
Ending balance (in shares) at Sep. 30, 2024 | 231.9 | |||||
Ending balance at Sep. 30, 2024 | $ 43,879 | $ 2 | 9,105 | 35,157 | (489) | 104 |
Beginning balance (in shares) at Mar. 31, 2024 | 232.5 | |||||
Beginning balance at Mar. 31, 2024 | 40,710 | $ 2 | 8,883 | 33,088 | (1,365) | 102 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,301 | 2,300 | 1 | |||
Other comprehensive income (loss) | (22) | (22) | ||||
Noncontrolling interests adjustment | 3 | 3 | ||||
Repurchase and retirement of common stock, including excise tax (in shares) | (0.9) | |||||
Repurchase and retirement of common stock, including excise tax | (466) | (34) | (432) | |||
Dividends and dividend equivalents | (381) | (381) | ||||
Issuance of common stock under employee stock plans, net of related tax benefits (in shares) | 0.3 | |||||
Issuance of common stock under employee stock plans, net of related tax benefits | 152 | 152 | ||||
Ending balance (in shares) at Jun. 30, 2024 | 231.9 | |||||
Ending balance at Jun. 30, 2024 | 42,297 | $ 2 | 9,001 | 34,575 | (1,387) | 106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,008 | 1,016 | (8) | |||
Other comprehensive income (loss) | 898 | 898 | ||||
Noncontrolling interests adjustment | 6 | 6 | ||||
Repurchase and retirement of common stock, including excise tax (in shares) | (0.1) | |||||
Repurchase and retirement of common stock, including excise tax | (60) | (5) | (55) | |||
Dividends and dividend equivalents | (379) | (379) | ||||
Issuance of common stock under employee stock plans, net of related tax benefits (in shares) | 0.1 | |||||
Issuance of common stock under employee stock plans, net of related tax benefits | 109 | 109 | ||||
Ending balance (in shares) at Sep. 30, 2024 | 231.9 | |||||
Ending balance at Sep. 30, 2024 | $ 43,879 | $ 2 | $ 9,105 | $ 35,157 | $ (489) | $ 104 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization References to the terms “we,” “our,” “us” or “Elevance Health” used throughout these Notes to Consolidated Financial Statements refer to Elevance Health, Inc., an Indiana corporation, and unless the context otherwise requires, its direct and indirect subsidiaries. References to the “states” include the District of Columbia and Puerto Rico unless the context otherwise requires. Elevance Health is a health company with the purpose of improving the health of humanity. We are one of the largest health insurers in the United States in terms of medical membership, serving nearly 46 million medical members through our affiliated health plans as of September 30, 2024. As a lifetime, trusted health partner, we offer a broad spectrum of network-based managed care risk-based plans to Individual, Employer Group, Medicaid and Medicare markets. In addition, we provide a broad array of managed care services to fee-based customers, including claims processing, stop loss insurance, provider network access, medical management, care management, wellness programs, actuarial services and other administrative services. We provide services to the federal government in connection with our Federal Health Products & Services business, which administers the Federal Employees Health Benefits (“FEHB”) Program. We provide an array of specialty services both to customers of our subsidiary health plans and also to unaffiliated health plans, including pharmacy services, dental, vision and supplemental health insurance benefits, as well as integrated health services. We are an independent licensee of the Blue Cross and Blue Shield Association (“BCBSA”), an association of independent health benefit plans. We serve our members as the Blue Cross licensee for California and as the Blue Cross and Blue Shield (“BCBS”) licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (in the New York City metropolitan area and upstate New York), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.) and Wisconsin. In a majority of these service areas, we do business as Anthem Blue Cross and Anthem Blue Cross and Blue Shield. We also conduct business through arrangements with other BCBS licensees as well as other strategic partners. In addition, we serve members in numerous states as Freedom Health, HealthSun, MMM, Optimum HealthCare, Simply Healthcare and/or Wellpoint. We are licensed to conduct insurance operations in all 50 states, the District of Columbia and Puerto Rico through our subsidiaries. Through various subsidiaries, we also offer pharmacy services through our CarelonRx business, and other healthcare-related services as Carelon Insights, Carelon Health and Carelon Behavioral Health. We have organized our brand portfolio into the following core go-to-market brands: • Anthem Blue Cross/Anthem Blue Cross and Blue Shield — represents our Anthem-branded and affiliated Blue Cross and/or Blue Shield licensed plans; • Wellpoint — unites select non-BCBSA licensed Medicare, Medicaid and commercial plans under the Wellpoint name; and • Carelon — this brand brings together our healthcare-related brands and capabilities, including our CarelonRx and Carelon Services businesses, under a single brand name. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting. Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements. We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”), unless the information contained in those disclosures materially changed or is required by GAAP. In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three and nine months ended September 30, 2024 and 2023 have been recorded. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024, or any other period. The seasonal nature of portions of our healthcare and related benefits business, as well as competitive and other market conditions, may cause full-year results to differ from estimates based upon our interim results of operations. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K. Certain of our subsidiaries operate outside of the United States and have functional currencies other than the U.S. dollar (“USD”). We translate the assets and liabilities of those subsidiaries to USD using the exchange rate in effect at the end of the period. We translate the revenues and expenses of those subsidiaries to USD using the average exchange rates in effect during the period. The net effect of these translation adjustments is included in “Foreign currency translation adjustments” in our consolidated statements of comprehensive income. Cash and Cash Equivalents: We control a number of bank accounts that are used exclusively to hold customer funds for the administration of customer benefits, and we have cash and cash equivalents on deposit to meet certain regulatory requirements. These amounts totaled $339 and $294 at September 30, 2024 and December 31, 2023, respectively, and are included in the “Cash and cash equivalents” line on our consolidated balance sheets. Investments: We classify fixed maturity securities in our investment portfolio as “available-for-sale” and report those securities at fair value. Certain fixed maturity securities are available to support current operations and, accordingly, we classify such investments as current assets without regard to their contractual maturity. Investments used to satisfy contractual, regulatory or other requirements are classified as long-term, without regard to contractual maturity. If a fixed maturity security is in an unrealized loss position and we have the intent to sell the fixed maturity security, or it is more likely than not that we will have to sell the fixed maturity security before recovery of its amortized cost basis, we write down the fixed maturity security’s cost basis to fair value and record an impairment loss in our consolidated statements of income. For impaired fixed maturity securities that we do not intend to sell or if it is more likely than not that we will not have to sell such securities, but we expect that we will not fully recover the amortized cost basis, we recognize the credit component of the impairment as an allowance for credit loss in our consolidated balance sheets and record an impairment loss in our consolidated statements of income. The non-credit component of the impairment is recognized in “Accumulated other comprehensive loss.” Furthermore, unrealized losses entirely caused by non-credit-related factors related to fixed maturity securities for which we expect to fully recover the amortized cost basis continue to be recognized in “Accumulated other comprehensive loss.” The credit component of an impairment is determined primarily by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting our best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of purchase. For mortgage-backed and asset-backed securities, cash flow estimates are based on assumptions regarding the underlying collateral, including prepayment speeds, vintage, type of underlying asset, geographic concentrations, default rates, recoveries and changes in value. For all other securities, cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings and estimates regarding timing and amount of recoveries associated with a default. For asset-backed securities included in “Fixed maturity securities”, we recognize income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities. Such adjustments are reported within net investment income. The changes in fair value of our marketable equity securities are recognized in our results of operations within net losses on financial instruments. Certain marketable equity securities are held to satisfy contractual obligations or for other business purposes and are reported under the caption “Other invested assets” in our consolidated balance sheets. Mortgage loans on real estate are classified as held for investment and are reported at their amortized cost basis net of allowance under the caption “Other invested assets” in our consolidated balance sheets. Amortized cost is the amount at which the loan is originated, adjusted for accrued interest, amortization of premium, discount and net deferred fees or costs, collection of cash and write-offs. We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management. The cash surrender value of the corporate-owned life insurance policies is reported under the caption “Other invested assets” in our consolidated balance sheets. We use the equity method of accounting for investments in companies in which our ownership interest may enable us to influence the operating or financial decisions of the investee company. Our proportionate share of equity in net income of these unconsolidated affiliates is reported within net investment income. The equity method investments are reported under the caption “Other invested assets” in our consolidated balance sheets. Investment income is recorded when earned. All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. We recognize the collateral as an asset, which is reported under the caption “Other current assets” in our consolidated balance sheets, and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category in our consolidated balance sheets. Unrealized gains or losses on securities lending collateral are included in “Accumulated other comprehensive loss” as a separate component of shareholders’ equity. The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions. To the extent the loaned securities’ value appreciates faster or depreciates slower than the value of the collateral pledged, we are exposed to the risk of the shortfall. As a primary mitigating mechanism, the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall, if any, is collected accordingly. Secondarily, the collateral level is set at 102% of the value of the loaned securities, which provides a cushion before any shortfall arises. The investment of the cash collateral is subject to market risk, which is managed by limiting the investments to higher quality and shorter duration instruments. Receivables: Receivables are reported net of amounts for expected credit losses. The allowance for doubtful accounts is based on historical collection trends, future forecasts and our judgment regarding the ability to collect specific accounts. Premium receivables include the uncollected amounts from employer risk-based groups, individuals and government programs for insurance services. Premium receivables are reported net of an allowance for doubtful accounts of $185 and $212 at September 30, 2024 and December 31, 2023, respectively. Self-funded receivables include administrative fees, claims and other amounts due from fee-based customers for administrative services. Self-funded receivables are reported net of an allowance for doubtful accounts of $89 and $87 at September 30, 2024 and December 31, 2023, respectively. Other receivables include pharmacy rebates, provider advances, claims recoveries, reinsurance receivables, proceeds due from brokers on investment trades, accrued investment income and other miscellaneous amounts due to us. These receivables are reported net of an allowance for doubtful accounts of $1,140 and $941 at September 30, 2024 and December 31, 2023, respectively. Revenue Recognition: For our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheet at September 30, 2024 or December 31, 2023. For the three and nine months ended September 30, 2024 and 2023, revenue recognized from performance obligations related to prior periods, such as changes in transaction price, were not material. For contracts that have an original, expected duration of greater than one year, revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material. Recently Adopted Accounting Guidance: In November 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-11, Financial Services—Insurance (Topic 944): Effective Date and Early Application (“ASU 2020-11”). The amendments in ASU 2020-11 changed the effective date and early application of Accounting Standards Update No. 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts , which was issued in November 2018. The amendments in ASU 2020-11 extended the original effective date by one year to our interim and annual reporting periods beginning after December 15, 2022. This standard requires us to review cash flow assumptions for our long-duration insurance contracts at least annually and recognize the effect of changes in future cash flow assumptions in net income. This standard also requires us to update discount rate assumptions quarterly and recognize the effect of changes in these assumptions in other comprehensive income. The rate used to discount our reserves for future policy benefits is based on an estimate of the yield for an upper-medium grade fixed-income instrument with a duration profile matching that of our liabilities. In addition, this standard changes the amortization method for deferred acquisition costs. We adopted these amendments on January 1, 2023, using the modified retrospective transition method for changes to the liability for future policy benefits and deferred acquisition costs as of the transition date, January 1, 2021. The adoption did not have an overall material impact on our financial statements. Recent Accounting Guidance Not Yet Adopted: In December 2023, the FASB issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740) (“ASU 2023-09”). The amendments in ASU 2023-09 are intended to improve income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for our fiscal year beginning after December 15, 2024. The amendments are to be applied on a prospective basis, although retrospective adoption is permitted. We do not believe the adoption of ASU 2023-09 will have a material impact on our consolidated financial statements or disclosures. In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in ASU 2023-07 are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our fiscal year beginning after December 15, 2023, and interim periods within our fiscal year beginning after December 15, 2024. The amendments are to be applied retrospectively to all prior periods presented in the financial statements, and upon transition, the significant segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. We do not believe the adoption of ASU 2023-07 will have a material impact on our consolidated financial statements or disclosures. In August 2023, the FASB issued Accounting Standards Update No. 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement (“ASU 2023-05”). ASU 2023-05 clarifies existing guidance to reduce diversity in practice and requires a joint venture to recognize and initially measure its assets and liabilities using a new basis of accounting, at fair value, upon formation. These amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. We do not believe the adoption of ASU 2023-05 will have a material impact on our consolidated financial statements and disclosures. There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2023 Annual Report on Form 10-K that had, or are expected to have, a material impact on our consolidated financial position, results of operations, cash flows or disclosures. |
Business Acquisitions and Dives
Business Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Business Acquisitions and Divestitures | Business Acquisitions and Divestitures Investments in Joint Ventures and Completed Acquisitions On August 6, 2024, we made an investment of $2,580, consisting of cash and the net put option discussed in Note 6 "Derivative Financial Instruments", that resulted in our minority interest ownership of approximately 35% of Augusta Topco Holdings, L.P. (“Mosaic Health”), a joint venture with Clayton, Dubilier & Rice (“CD&R”) that is designed to accelerate innovation in care delivery across multiple regions in the United States by bringing together certain care delivery and enablement assets of Carelon Management Services Inc. (“CMSI Assets”), a Carelon Health business, and two CD&R portfolio businesses, apree health and Millennium Physician Group (see Note 5, “Investments”). On March 11, 2024, we completed our acquisition of Paragon Healthcare, Inc. (“Paragon”). Paragon, which operates as part of CarelonRx, provides infusion services and injectable therapies through its omnichannel model of ambulatory infusion centers, home infusion pharmacies, and other specialty pharmacy services. This acquisition aligns with our vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve. As of September 30, 2024, the purchase price was allocated to the tangible and intangible net assets acquired based on management's initial estimates of their fair values, of which $411 has been allocated to finite-lived intangible assets and $751 to goodwill. The majority of the goodwill is not deductible for income tax purposes. Since closing and during the measurement period we have adjusted goodwill by $(2). As of September 30, 2024, the initial accounting for the acquisition has not been finalized. The proforma effects of this acquisition for prior periods were not material to our consolidated results of operations. On February 15, 2023, we completed our acquisition of BioPlus Parent, LLC and subsidiaries (“BioPlus”) from CarepathRx Aggregator, LLC. Prior to the acquisition, BioPlus was one of the largest independent specialty pharmacy organizations in the United States. BioPlus, which operates as part of CarelonRx, seeks to connect payors and providers of specialty pharmaceuticals to meet the medication therapy needs of patients with complex medical conditions. This acquisition aligns with our vision to be an innovative, valuable and inclusive healthcare partner by providing care management programs that improve the lives of the people we serve. As of September 30, 2024, the purchase price was allocated to the tangible and intangible net assets acquired based on management’s estimates of their fair values, of which $820 has been allocated to finite-lived intangible assets and $893 to goodwill. The majority of goodwill is not deductible for income tax purposes. The accounting for the acquisition was finalized as of March 31, 2024. The proforma effects of this acquisition for prior periods were not material to our consolidated results of operations. Divestiture On April 1, 2024, we completed the sale of our life and disability businesses to StanCorp Financial Group, Inc. (“The Standard”), a provider of financial protection products and services for employers and individuals, which resulted in a gain on sale of business of $201, net of a contingent purchase price adjustment of $(39) in the three months ended September 30, 2024. Upon closing, we and The Standard entered into a product distribution partnership. The related net assets held for sale for the life and disability businesses divested as of December 31, 2023 and results of operations for the nine months ending September 30, 2024 were not material. Pending Acquisitions On December 31, 2023, we entered into an agreement to acquire Centers Plan for Healthy Living LLC and Centers for Specialty Care Group IPA, LLC (“Centers”). Centers is a managed long-term care plan that serves New York state Medicaid and dual-eligible Medicaid/Medicare members, enabling adults with long-term care needs and disabilities to live safely and independently in their own home. This acquisition aligns with our strategic plan to grow the Health Benefits segment and leverage industry-leading expertise while serving Medicaid and dual-eligible populations. The acquisition is expected to close in the fourth quarter of 2024 and is subject to standard closing conditions and customary approvals. |
Business Optimization Initiativ
Business Optimization Initiatives | 9 Months Ended |
Sep. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Business Optimization Initiatives | Business Optimization Initiatives During the third quarter of 2023, based on a strategic review of our operations, assets and investments, management implemented the “2023-2024 Business Efficiency Program” to enhance operating efficiency, refine the focus of our investments and optimize our physical footprint. The 2023-2024 Business Efficiency Program includes the write-off of certain information technology assets and contract exit costs, a reduction in staff including the relocation of certain job functions, and the impairment of assets associated with the closure or partial closure of data centers and offices. Actions to be taken under the 2023-2024 Business Efficiency Program were substantially finalized as of September 30, 2024. Cash outlays associated with this program, which primarily relate to the personnel-related costs, are expected to be paid through 2025. In the third quarter of 2024, we incurred $268 of costs towards the 2023-2024 Business Efficiency Program. This included primarily $72 of pre-tax charges for information technology asset write-offs, $165 of pre-tax personnel-related charges for the reduction and/or relocation of staff, which includes severance and related costs primarily determined under our existing severance plans, and $31 of pre-tax charges from asset impairments related to the closure or partial closure of offices, including operating lease-related right-of-use assets and other property and equipment. These charges were recognized as operating expense in the Corporate & Other segment. The ending balances related to the total liabilities for employee termination costs under the 2023-2024 Business Efficiency Program at September 30, 2024 and December 31, 2023 were $267 and $191, respectively. During the nine months ended September 30, 2024, there were $165 in charges recorded related to employee termination costs under the 2023-2024 Business Efficiency Program, and payments were $89. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2024 | |
Investments [Abstract] | |
Investments | Investments Fixed Maturity Securities We evaluate our available-for-sale fixed maturity securities for declines based on qualitative and quantitative factors. We have established an allowance for credit loss and recorded credit loss expense as a reflection of our expected impairment losses. We continue to review our investment portfolios under our impairment review policy. Given the inherent uncertainty of changes in market conditions and the significant judgments involved, there is a continuing risk that declines in fair value may occur and additional material impairment losses for credit losses on investments may be recorded in future periods. A summary of current and long-term fixed maturity securities, available-for-sale, at September 30, 2024 and December 31, 2023 is as follows: Cost or Gross Gross Allowance Estimated September 30, 2024 Fixed maturity securities: United States Government securities $ 1,795 $ 40 $ (19) $ — $ 1,816 Government sponsored securities 160 4 (2) — 162 Foreign government securities 24 — (1) — 23 States, municipalities and political subdivisions, tax-exempt 3,431 91 (84) — 3,438 Corporate securities 15,588 607 (264) (1) 15,930 Residential mortgage-backed securities 3,878 75 (171) — 3,782 Commercial mortgage-backed securities 1,967 39 (49) (1) 1,956 Other asset-backed securities 2,779 45 (84) — 2,740 Total fixed maturity securities $ 29,622 $ 901 $ (674) $ (2) $ 29,847 December 31, 2023 Fixed maturity securities: United States Government securities $ 1,873 $ 25 $ (54) $ — $ 1,844 Government sponsored securities 112 1 (3) — 110 Foreign government securities 5 1 (2) — 4 States, municipalities and political subdivisions, tax-exempt 3,985 69 (152) — 3,902 Corporate securities 14,838 322 (580) (2) 14,578 Residential mortgage-backed securities 4,071 40 (279) — 3,832 Commercial mortgage-backed securities 2,174 13 (138) (2) 2,047 Other asset-backed securities 4,278 25 (130) — 4,173 Total fixed maturity securities $ 31,336 $ 496 $ (1,338) $ (4) $ 30,490 Other asset-backed securities primarily consists of collateralized loan obligations and other debt securities. Allowances for credit losses have been recorded in the amount of $2 and $4 at September 30, 2024 and December 31, 2023, respectively, for declines in fair value due to unfavorable changes in the credit quality characteristics that impact our assessment of collectability of principal and interest. For fixed maturity securities in an unrealized loss position at September 30, 2024 and December 31, 2023, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position: Less than 12 Months 12 Months or Greater (Securities are whole amounts) Number of Estimated Gross Number of Estimated Gross September 30, 2024 Fixed maturity securities: United States Government securities 8 $ 98 $ — 29 $ 387 $ (19) Government sponsored securities 1 13 — 36 47 (2) Foreign government securities 1 — — 2 4 (1) States, municipalities and political subdivisions, tax-exempt 62 85 (1) 715 1,111 (83) Corporate securities 207 348 (7) 1,469 3,382 (257) Residential mortgage-backed securities 31 58 (1) 1,405 1,568 (170) Commercial mortgage-backed securities 27 91 (1) 339 784 (48) Other asset-backed securities 58 129 (8) 264 835 (76) Total fixed maturity securities 395 $ 822 $ (18) 4,259 $ 8,118 $ (656) December 31, 2023 Fixed maturity securities: United States Government securities 35 $ 552 $ (9) 44 $ 370 $ (45) Government sponsored securities — — — 40 52 (3) Foreign government securities — — — 2 4 (2) States, municipalities and political subdivisions, tax-exempt 203 354 (2) 1,034 1,811 (150) Corporate securities 389 608 (15) 2,624 6,871 (565) Residential mortgage-backed securities 183 438 (5) 1,620 2,075 (274) Commercial mortgage-backed securities 112 353 (6) 534 1,317 (132) Other asset-backed securities 110 394 (18) 761 2,342 (112) Total fixed maturity securities 1,032 $ 2,699 $ (55) 6,659 $ 14,842 $ (1,283) Unrealized losses on our securities shown in the table above have not been recognized into income because, as of September 30, 2024, we do not intend to sell these investments and it is likely that we will not be required to sell these investments prior to their maturity or anticipated recovery. The declines in fair values are largely due to increasing interest rates driven by the higher rate of inflation and other market conditions. The amortized cost and fair value of fixed maturity securities at September 30, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations. Amortized Estimated Due in one year or less $ 264 $ 259 Due after one year through five years 5,110 5,117 Due after five years through ten years 11,404 11,627 Due after ten years 6,999 7,106 Mortgage-backed securities 5,845 5,738 Total fixed maturity securities $ 29,622 $ 29,847 During the three and nine months ended September 30, 2024, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $3,870 and $12,284, respectively. During the three and nine months ended September 30, 2023, we received total proceeds from sales, maturities, calls or redemptions of fixed maturity securities of $6,236 and $21,321, respectively. In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited to: (i) changes in the investment environment; (ii) expectation that the fair value could deteriorate further; (iii) desire to reduce exposure to an issuer or an industry; (iv) changes in credit quality; or (v) changes in expected cash flow. All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. Equity Securities A summary of marketable equity securities at September 30, 2024 and December 31, 2023 is as follows: September 30, 2024 December 31, 2023 Equity securities: Exchange traded funds $ 994 $ 106 Common equity securities 40 45 Private equity securities 79 78 Total $ 1,113 $ 229 Other Invested Assets Other invested assets include primarily our investments in limited partnerships, joint ventures and other non-controlled corporations, mortgage loans and the cash surrender value of corporate-owned life insurance policies. Investments in limited partnerships, joint ventures and other non-controlled corporations are carried at our share in the entities’ undistributed earnings, which approximates fair value. Financial information for certain of these investments is reported on a one or three month lag due to the timing of when we receive financial information from the companies. As discussed in Note 3, during the three months ended September 30, 2024, we made an initial investment in Mosaic Health which is accounted for as an equity method investment. Including all direct transaction costs, our investment was $2,580, representing approximately 35% of Mosaic Health ownership. Our additional contribution of the CMSI Assets to Mosaic Health is subject to certain closing conditions and customary approvals and is expected to be made in the fourth quarter of 2024 or first quarter of 2025. The CMSI Assets, along with certain other unrelated assets planned to be divested, are included under the captions “Assets held for sale” and “Liabilities held for sale” in our consolidated balance sheet as of September 30, 2024. In connection with our equity method investment in Mosaic Health, we entered into a financing agreement to provide a term loan of $200 and a revolving credit facility of up to $500 to Mosaic Health. Net amounts receivable under these arrangements were $188 at September 30, 2024, which is included under the caption “Other noncurrent assets” in our consolidated balance sheets as of September 30, 2024. Investment (Losses) and Gains Net investment (losses) and gains for the three and nine months ended September 30, 2024 and 2023 are as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net (losses) gains: Fixed maturity securities: Gross realized gains from sales $ 53 $ 13 $ 92 $ 34 Gross realized losses from sales (107) (164) (354) (377) Impairment (losses) gains recognized in income (9) 2 (13) (8) Net realized losses from sales of fixed maturity securities (63) (149) (275) (351) Equity securities: Unrealized gains (losses) recognized on equity securities still held at the end of the period 3 — 4 (1) Net realized (losses) gains recognized on equity securities sold during the period (3) 2 (4) 5 Net gains on equity securities — 2 — 4 Other investments: Gross gains 35 86 45 91 Gross losses — (68) (25) (62) Impairment losses recognized in income (98) (8) (124) (37) Net (losses) gains on other investments (63) 10 (104) (8) Net losses on investments $ (126) $ (137) $ (379) $ (355) Accrued Investment Income At September 30, 2024 and December 31, 2023, accrued investment income totaled $300 and $301, respectively. We recognize accrued investment income under the caption “Other receivables” on our consolidated balance sheets. Securities Lending Programs We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. The fair value of the collateral received at the time of the transactions amounted to $2,538 and $2,380 at September 30, 2024 and December 31, 2023, respectively. The value of the collateral represented 102% of the market value of the securities on loan at each of September 30, 2024 and December 31, 2023. We recognize the collateral as an asset under the caption “Other current assets” in our consolidated balance sheets, and we recognize a corresponding liability for the obligation to return the collateral to the borrower under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets. At September 30, 2024 and December 31, 2023, the remaining contractual maturity of our securities lending agreements included overnight and continuous transactions of cash for $2,320 and $2,255, respectively, United States Government securities for $218 and $99, respectively, and residential mortgage-backed securities for $0 and $26, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments to manage interest rate and foreign exchange risk and credit exposure. We primarily invest in the following types of derivative financial instruments: interest rate swaps, futures, forward contracts, put and call options, swaptions, embedded derivatives and warrants. We also enter into master netting agreements, which reduce credit risk by permitting net settlement of transactions. We have entered into various interest rate swap contracts to convert a portion of our interest rate exposure on our long-term debt from fixed rates to floating rates. The floating rates payable on all of our fair value hedges are benchmarked to the Secured Overnight Financing Rate (“SOFR”). Any amounts recognized for changes in fair value of these derivatives are included in the captions “Other current assets,” “Other noncurrent assets,” “Other current liabilities” or “Other noncurrent liabilities” in our consolidated balance sheets, as applicable. The unrecognized loss for all expired and terminated cash flow hedges included in “Accumulated other comprehensive loss”, was $203 and $211 at September 30, 2024 and December 31, 2023, respectively. During the three and nine months ended months ended September 30, 2024 , we recognized net gains of $1 and $8, respectively, on non-hedging derivatives. During the three and nine months ended September 30, 2023 , we recognized net gains of $13 and net losses of $3 on non-hedging derivatives, respectively. In connection with our equity investment in Mosaic Health (see Note 5, “Investments”), we entered into a limited partnership and related agreements with the majority owners that provides for certain rights and obligations of each party, including certain put, call, and purchase price true-up options. These options, if exercised, will result in our purchase of the units held by the majority owners as early as 2028 but no later than 2030 at a price based on certain multiples of revenue and earnings of Mosaic Health businesses, subject to various adjustments and qualifications. We have calculated the fair value of the net put option, which is a Level III measurement (see Note 7, “Fair Value”), using a Monte Carlo simulation, which relies on assumptions including cash flow projections, risk-free rates, volatility and details specific to the options. Significant changes in assumptions could result in significantly lower or higher fair value measurements. The net put option’s preliminary estimated fair value liability of $1,330, which is a non-cash item measured at the date of our initial investment, is included under the caption “Other noncurrent liabilities” in our consolidated balance sheet as of September 30, 2024. We have elected to not mark the net put option to market, and the value of the net put option will remain on our balance sheet until it is exercised or expires. For additional information relating to the fair value of our derivative assets and liabilities, see Note 7, “Fair Value,” included in this Quarterly Report on Form 10-Q. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. These assets and liabilities are classified into one of three levels of hierarchy defined by GAAP. For a description of the methods and assumptions that are used to estimate and determine the fair value hierarchy classification for each class of financial instruments, see Note 7, “Fair Value,” to our audited consolidated financial statements as of and for the year ended December 31, 2023 included in Part II, Item 8 of our 2023 Annual Report on Form 10-K. A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at September 30, 2024 and December 31, 2023 is as follows: Level I Level II Level III Total September 30, 2024 Assets: Cash equivalents $ 2,680 $ — $ — $ 2,680 Fixed maturity securities, available-for-sale: United States Government securities — 1,816 — 1,816 Government sponsored securities — 162 — 162 Foreign government securities — 23 — 23 States, municipalities and political subdivisions, tax-exempt — 3,438 — 3,438 Corporate securities — 15,885 45 15,930 Residential mortgage-backed securities — 3,782 — 3,782 Commercial mortgage-backed securities — 1,956 — 1,956 Other asset-backed securities — 1,953 787 2,740 Total fixed maturity securities, available-for-sale — 29,015 832 29,847 Equity securities: Exchange traded funds 994 — — 994 Common equity securities 13 27 — 40 Private equity securities — — 79 79 Total equity securities 1,007 27 79 1,113 Other invested assets - common equity securities 24 — — 24 Securities lending collateral — 2,538 — 2,538 Derivatives - other assets — 97 — 97 Total assets $ 3,711 $ 31,677 $ 911 $ 36,299 Percentage of total assets at fair value 10% 87% 3% 100% Liabilities: Derivatives - other liabilities $ — $ (26) $ — $ (26) Total liabilities $ — $ (26) $ — $ (26) December 31, 2023 Assets: Cash equivalents $ 2,210 $ — $ — $ 2,210 Fixed maturity securities, available-for-sale: United States Government securities — 1,844 — 1,844 Government sponsored securities — 110 — 110 Foreign government securities — 4 — 4 States, municipalities and political subdivisions, tax-exempt — 3,902 — 3,902 Corporate securities — 14,532 46 14,578 Residential mortgage-backed securities — 3,830 2 3,832 Commercial mortgage-backed securities — 2,047 — 2,047 Other asset-backed securities — 3,634 539 4,173 Total fixed maturity securities, available-for-sale — 29,903 587 30,490 Equity securities: Exchange traded funds 106 — — 106 Common equity securities 12 33 — 45 Private equity securities — — 78 78 Total equity securities 118 33 78 229 Other invested assets - common equity securities 111 — — 111 Securities lending collateral — 2,382 — 2,382 Derivatives - other assets — 10 — 10 Total assets $ 2,439 $ 32,328 $ 665 $ 35,432 Percentage of total assets at fair value 7% 91% 2% 100% Liabilities: Derivatives - other liabilities $ — $ (40) $ — $ (40) Total liabilities $ — $ (40) $ — $ (40) There were no individually material transfers into or out of Level III during the three and nine months ended September 30, 2024 or 2023. There were no adjustments to quoted market prices obtained from the pricing services during the three and nine months ended September 30, 2024 or 2023. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. As disclosed in Note 3, “Business Acquisitions and Divestitures,” we completed our acquisition of Paragon in the first quarter of 2024 and BioPlus in the first quarter of 2023. The net assets acquired in our acquisitions of Paragon and BioPlus and resulting goodwill and other intangible assets were recorded at fair value primarily using Level III inputs. The majority of tangible assets acquired and liabilities assumed were recorded at their carrying values as of the acquisition date, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and other intangible assets acquired in our acquisitions of Paragon and BioPlus were internally estimated based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets could be expected to generate in the future. We developed internal estimates for the expected cash flows and discount rate in the present value calculation. In 2024, we entered into a limited partnership and related agreements which included certain put and call options on our minority interest ownership of Mosaic Health. Also, in 2023, we entered into a limited liability company agreement which included certain put and call options on our minority interest ownership of Project Freedom Holdings, LLC, which is the ultimate parent of Liberty Dental Plan Corporation (“Liberty Dental”). The resulting net put option liabilities were recorded at their fair value measured at the date of acquisition using Level III inputs based on a Monte Carlo simulation, which relies on assumptions including cash flow projections, risk-free rates, volatility and details specific to the options. We have elected to not mark the net put option to market, and the value of the net put option will remain on our balance sheet until it is exercised or expires. Other than the assets acquired and liabilities assumed in our acquisitions of Paragon and BioPlus and the net put options on Mosaic Health and Liberty Dental, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the three and nine months ended September 30, 2024 or 2023. In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in our consolidated balance sheets. Non-financial instruments such as property and equipment, other current assets, deferred income taxes, intangible assets and certain financial instruments, such as policy liabilities, are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine our underlying economic value. The carrying amounts reported in the consolidated balance sheets for cash, premium receivables, self-funded receivables, other receivables, unearned income, accounts payable and accrued expenses, and certain other current liabilities approximate fair value because of the short-term nature of these items. These assets and liabilities are not listed in the table below. See Note 7, “Fair Value,” to our audited consolidated financial statements as of and for the year ended December 31, 2023 included in Part II, Item 8 of our 2023 Annual Report on Form 10-K for details on the methods and assumptions used to estimate the fair value for each class of financial instruments that are recorded at their carrying value in our consolidated balance sheets. A summary of the estimated fair values by level for each class of financial instruments that are recorded at their carrying value on our consolidated balance sheets at September 30, 2024 and December 31, 2023 is as follows: Carrying Estimated Fair Value Level I Level II Level III Total September 30, 2024 Assets: Other invested assets $ 8,041 $ — $ — $ 8,024 $ 8,024 Liabilities: Debt: Short-term borrowings 360 — 360 — 360 Notes 26,788 — 25,602 — 25,602 December 31, 2023 Assets: Other invested assets $ 5,996 $ — $ — $ 5,972 $ 5,972 Liabilities: Debt: Short-term borrowings 225 — 225 — 225 Notes 24,895 — 23,569 — 23,569 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three months ended September 30, 2024 and 2023, we recognized income tax expense of $365 an d $354, respectively, which represent effective income tax rates of 26.6% and 21.4%, respectively. During the nine months ended September 30, 2024 and 2023 , we recognized income tax expense of $ 1,740 an d $1,554, respectively, which represent effective income tax rates of 23.8% and 23.1%, respectively. The increase in our effective income tax rate from the three and nine months ended September 30, 2023 was primarily due to an increase in reserves for uncertain tax positions. Income taxes receivable totaled $312 and $543 at September 30, 2024 and December 31, 2023, respectively. We recognize income taxes receivable as an asset under the caption “Other current assets” in our consolidated balance sheets. |
Medical Claims Payable
Medical Claims Payable | 9 Months Ended |
Sep. 30, 2024 | |
Insurance [Abstract] | |
Medical Claims Payable | Medical Claims Payable A reconciliation of the beginning and ending balances for medical claims payable for the nine months ended September 30, 2024 and 2023 is as follows: 2024 2023 Gross medical claims payable, beginning of period $ 15,865 $ 15,348 Ceded medical claims payable, beginning of period (7) (6) Net medical claims payable, beginning of period 15,858 15,342 Net incurred medical claims: Current period 92,715 91,058 Prior periods redundancies (1,610) (1,342) Total net incurred medical claims 91,105 89,716 Net payments attributable to: Current period medical claims 79,220 77,048 Prior periods medical claims 12,567 12,097 Total net payments 91,787 89,145 Net medical claims payable, end of period 15,176 15,913 Ceded medical claims payable, end of period 9 4 Gross medical claims payable, end of period $ 15,185 $ 15,917 At September 30, 2024, the total of net incurred but not reported liabilities plus expected development on reported claims was $285, $1,396 and $13,495 for the claim years 2022 and prior, 2023 and 2024, respectively. The favorable development recognized in the nine months ended September 30, 2024 resulted from faster than expected development of completion factors from the latter part of 2023 as well as trend factors in late 2023 developing more favorably than originally expected. The favorable development recognized in the nine months ended September 30, 2023 resulted primarily from trend factors in late 2022 developing more favorably than expected. Favorable development in the completion factors resulting from the latter part of 2022 developing faster than expected also contributed. The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the nine months ended September 30, 2024 and 2023 is as follows: 2024 2023 Total net incurred medical claims $ 91,105 $ 89,716 Quality improvement and other claims expense 2,962 3,280 Benefit expense $ 94,067 $ 92,996 The reconciliation of the medical claims payable reflected in the tables above to the consolidated ending balance for medical claims payable included in the consolidated balance sheet, as of September 30, 2024 is as follows: Total Net medical claims payable, end of period $ 15,176 Ceded medical claims payable, end of period 9 Insurance lines other than short duration 269 Liabilities held for sale (108) Gross medical claims payable, end of period $ 15,346 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt We generally issue senior unsecured notes for long-term borrowing purposes. At September 30, 2024 and December 31, 2023, we had $26,763 and $24,870, respectively, outstanding under these notes. On May 30, 2024, we issued $600 aggregate principal amount of 5.150% Notes due 2029 (the “2029 Notes”), $1,000 aggregate principal amount of 5.375% Notes due 2034 (the “2034 Notes”) and $1,000 aggregate principal amount of 5.650% Notes due 2054 (the “2054 Notes”, and, together with the 2029 Notes and the 2034 Notes, the “Notes”) under our shelf registration statement. Interest on the Notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing December 15, 2024. We intend to use the net proceeds for working capital and general corporate purposes, including, but not limited to, the funding of acquisitions, repayment of short-term and long-term debt and the repurchase of our common stock pursuant to our share repurchase program. On August 15, 2024, we repaid, at maturity, the $800 outstanding balance of our 3.500% senior unsecured notes. We have an unsecured surplus note with an outstanding principal balance of $25 at both September 30, 2024 and December 31, 2023. We have a senior revolving credit facility (the “5-Year Facility”) with a group of lenders for general corporate purposes. The 5-Year Facility provides credit of up to $4,000 and matures in April 2027. Our ability to borrow under the 5-Year Facility is subject to compliance with certain covenants, including covenants requiring us to maintain a defined debt-to-capital ratio of not more than 60%, subject to increase in certain circumstances set forth in the credit agreement for the 5-Year Facility. As of September 30, 2024, our debt-to-capital ratio, as defined and calculated under the 5-Year Facility, was 38.2%. We do not believe the restrictions contained in our 5-Year Facility covenants materially affect our financial or operating flexibility. As of September 30, 2024, we were in compliance with all of our debt covenants under the 5-Year Facility. There were no amounts outstanding under the 5-Year Facility at any time during the nine months ended September 30, 2024 or during the twelve months ended December 31, 2023. We have an authorized commercial paper program of up to $4,000, the proceeds of which may be used for general corporate purposes. We had no amounts outstanding under this program at both September 30, 2024 and December 31, 2023. We are a member, through certain subsidiaries, of the Federal Home Loan Bank of Indianapolis, the Federal Home Loan Bank of Cincinnati, the Federal Home Loan Bank of Atlanta and the Federal Home Loan Bank of New York (collectively, the “FHLBs”). As a member, we have the ability to obtain short-term cash advances, subject to certain minimum collateral requirements. We had $360 and $225 of outstanding short-term borrowings from the FHLBs at September 30, 2024 and December 31, 2023, respectively. All debt is a direct obligation of Elevance Health, Inc., except for the FHLBs borrowings. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Regulatory Proceedings We are defendants in, or parties to, a number of pending or threatened legal actions or proceedings. To the extent a plaintiff or plaintiffs in the following cases have specified in their complaint or in other court filings the amount of damages being sought, we have noted those alleged damages in the descriptions below. Where available information indicates that it is probable that a loss has been incurred as of the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many proceedings, however, it is difficult to determine whether any loss is probable or reasonably possible. In addition, even where loss is possible or probable or an exposure to loss exists in excess of the liability already accrued with respect to a previously identified loss contingency, it is not always possible to reasonably estimate the amount of the possible or probable loss or range of losses in excess of the amount, if any, accrued, for various reasons, including but not limited to some or all of the following: (i) there are novel or unsettled legal issues presented, (ii) the proceedings are in early stages, (iii) there is uncertainty as to the likelihood of a class being certified or decertified or the ultimate size and scope of the class, (iv) there is uncertainty as to the outcome of pending appeals or motions, (v) there are significant factual issues to be resolved, and/or (vi) in many cases, the plaintiffs have not specified damages in their complaint or in court filings. With respect to the cases described below, we contest liability and/or the amount of damages in each matter, and we believe we have meritorious defenses. We do not believe the outcome of any known pending or threatened legal actions or proceedings will, in the aggregate, have a material impact on our financial position. However, unanticipated outcomes do sometimes occur, which could result in liabilities in excess of our accruals and could have a material adverse effect on our consolidated financial position or results of operations. In addition to the lawsuits described below, we are also involved in other pending and threatened litigation of the character incidental to our business and are from time to time involved as a party in various governmental investigations, audits, reviews and administrative proceedings (“government actions”). These government actions include routine and special inquiries by and disclosures to state insurance departments, state attorneys general, U.S. Regulatory Agencies, the U.S. Attorney General and subcommittees of the U.S. Congress. Such government actions could result in the imposition of civil or criminal fines, penalties, other sanctions and additional rules, regulations or other restrictions on our business operations. Any liability that may result from any one of these government actions, or in the aggregate, could have a material adverse effect on our consolidated financial position or results of operations. Blue Cross Blue Shield Antitrust Litigation We are a defendant in multiple lawsuits that were initially filed in 2012 against the BCBSA and Blue Cross and/or Blue Shield licensees (the “Blue plans”) across the country. Cases filed in twenty-eight states were consolidated into a single, multi-district proceeding captioned In re Blue Cross Blue Shield Antitrust Litigation that is pending in the U.S. District Court for the Northern District of Alabama (the “Court”). Generally, the suits allege that the BCBSA and the Blue plans have conspired to horizontally allocate geographic markets through license agreements, best efforts rules that limit the percentage of non-Blue revenue of each plan, restrictions on acquisitions, rules governing the BlueCard ® and National Accounts programs and other arrangements in violation of the Sherman Antitrust Act and related state laws. The cases were brought by two putative nationwide classes of plaintiffs, health plan subscribers and providers. The BCBSA and Blue plans approved a settlement agreement and release with the subscriber plaintiffs (the “Subscriber Settlement Agreement”), which agreement required the Court’s approval to become effective. The Subscriber Settlement Agreement requires the defendants to make a monetary settlement payment and contains certain terms imposing non-monetary obligations including (i) eliminating the “national best efforts” rule in the BCBSA license agreements (which rule limits the percentage of non-Blue revenue permitted for each Blue plan) and (ii) allowing for some large national employers with self-funded benefit plans to request a bid for insurance coverage from a second Blue plan in addition to the local Blue plan. In November 2020, the Court issued an order preliminarily approving the Subscriber Settlement Agreement, following which members of the subscriber class were provided notice of the Subscriber Settlement Agreement and an opportunity to opt out of the class. A small number of subscribers submitted valid opt-outs by the opt-out deadline. In August 2022, the Court issued a final order approving the Subscriber Settlement Agreement (the “Final Approval Order”). The Court amended its Final Approval Order in September 2022, further clarifying the injunctive relief that may be available to subscribers who submitted valid opt-outs. In compliance with the Subscriber Settlement Agreement, we paid $506 into an escrow account in September 2022, for an aggregate and full settlement payment by us of $596, which was accrued in 2020. Four notices of appeal of the Final Approval Order were heard by a panel of the United States Court of Appeals for the Eleventh Circuit in September 2023 (the “Eleventh Circuit”), and the Eleventh Circuit affirmed the Court’s Final Approval Order approving the Subscriber Settlement Agreement in October 2023. Petitions for rehearing were filed by certain appellants in November 2023 and December 2023 and were denied in January 2024. As a result, the Eleventh Circuit issued a mandate terminating the jurisdiction of the Eleventh Circuit in February 2024. In March 2024, Home Depot, one of the appellants, filed a petition for certiorari to the United States Supreme Court (the “Supreme Court”). On the respondents' request, the Supreme Court granted an extension to respond until May 2024. In April 2024, David Behenna, another appellant, filed a petition for certiorari to the Supreme Court, and the defendants and the subscriber plaintiffs filed briefs in opposition in May 2024. In June 2024, the Supreme Court declined to grant certiorari, exhausting all appellate rights. The Subscriber Settlement Agreement and the defendants' payment and non-monetary obligations under the Subscriber Settlement Agreement became effective in June 2024, with the request for second Blue plan bid provisions effective in September 2024. The funds held in escrow will be distributed in accordance with the Subscriber Settlement Agreement. A number of follow-on cases involving entities that opted out of the Subscriber Settlement Agreement have been filed. Those actions are: Alaska Air Group, Inc., et al. v. Anthem, Inc., et al., No. 2:21-cv-01209-AMM (N.D. Ala.) (“Alaska Air”) ; JetBlue Airways Corp., et al. v. Anthem, Inc., et al. , No. 2:22-cv-00558-GMB (N.D. Ala.) (“Jet Blue”) ; Metropolitan Transportation Authority v. Blue Cross and Blue Shield of Alabama et al. , No. 2:22-cv-00265-RDP (N.D. Ala.) (dismissed without prejudice in June 2023); Bed Bath & Beyond Inc. v. Anthem, Inc. , No. 2:22-cv-01256-SGC (N.D. Ala.); Hoover, et al. v. Blue Cross Blue Shield Association, et al. , No. 2:22-cv-00261-RDP (N.D. Ala.); and VHS Liquidating Trust v. Blue Cross of California, et al. , No. RG21106600 (Cal. Super.) (“VHS”) . In February 2023, the Court denied the defendants’ motion to dismiss based on a statute of limitations defense in Alaska Air and Jet Blue . In September 2023, the California court presiding over the VHS case upheld its prior order granting in part defendants’ motion to strike based on the statute of limitations. We intend to continue to vigorously defend these follow-on cases, which we believe are without merit; however, their ultimate outcome cannot be presently determined. In October 2020, after the Court lifted the stay as to the provider litigation, provider plaintiffs filed a renewed motion for class certification, which defendants opposed. In March 2021, the Court issued an order terminating the pending motion for class certification until the Court determined the standard of review applicable to the providers’ claims. In response to that order, the parties filed renewed standard of review motions, and in June 2021, the parties filed summary judgment motions not critically dependent on class certification. In February 2022, the Court issued orders (i) granting certain defendants’ motion for partial summary judgment against the provider plaintiffs who had previously released claims against such defendants, and (ii) granting the provider plaintiffs’ motion for partial summary judgment, determining that Ohio v. American Express Co . does not affect the standard of review in this case. In August 2022, the Court issued orders (i) granting in part the defendants’ motion regarding the antitrust standard of review, holding that for the period of time after the elimination of the “national best efforts” rule, the rule of reason applies to the provider plaintiffs’ market allocation conspiracy claims, and (ii) denying the provider plaintiffs’ motion for partial summary judgment on the standard of review, reaffirming its prior holding that the provider groups’ boycott claims are subject to the rule of reason. In December 2023, the Court denied defendants’ motion for summary judgment on providers’ damage claims as time-barred and speculative and provider plaintiffs’ motion for partial summary judgment on the defendants’ single entity defense due to the existence of genuine issues of material fact. In January 2024, the Court issued orders (i) denying defendants’ motion for summary judgment on (a) all claims by certain hospital providers and (b) any claims based on the Blue system's rules other than exclusive serviced areas or BlueCard and (ii) denying provider plaintiffs’ motion for partial summary judgment on defendants’ common law trademark claims. Provider plaintiffs’ motion for class certification, filed in October 2020, remains pending. In the third quarter of 2024, the BCBSA, along with the individually named Blue plans approved a settlement agreement and release (the “Provider Settlement Agreement”) with the provider plaintiffs, and in October 2024 the provider plaintiffs filed a motion for preliminary approval with the Court. If approved by the Court, the Provider Settlement Agreement will require the defendants to make a monetary settlement payment, our portion of which is estimated to be $666, and will contain certain non-monetary terms including (i) expansion of certain opportunities to contract with providers in contiguous service areas, (ii) certain prompt pay commitments, and (iii) various technological enhancements to the BlueCard program. We recognized our estimated payment obligation under the Provider Settlement Agreement of $666 in September 2024. We recognized this estimated payment obligation as operating expense in the Corporate & Other segment (see Note 15, “Segment Information”). Express Scripts, Inc. PBM Litigation In March 2016, we filed a lawsuit against Express Scripts, Inc. (“Express Scripts”), our vendor at the time for pharmacy benefit management services, captioned Anthem, Inc. v. Express Scripts, Inc. , in the U.S. District Court for the Southern District of New York (the “District Court”). The lawsuit sought to recover over $14,800 in damages for pharmacy pricing that is higher than competitive benchmark pricing under the agreement between the parties (the “ESI Agreement”), over $158 in damages related to operational breaches, as well as various declarations under the ESI Agreement, including that Express Scripts: (i) breached its obligation to negotiate in good faith and to agree in writing to new pricing terms (the “Pricing Claim”); (ii) was required to provide competitive benchmark pricing to us through the term of the ESI Agreement; (iii) has breached the ESI Agreement; and (iv) is required under the ESI Agreement to provide post-termination services, at competitive benchmark pricing, for one year following any termination. Express Scripts disputed our contractual claims and it sought declaratory judgments: (i) regarding the timing of the periodic pricing review under the ESI Agreement, and (ii) that it has no obligation to ensure that we receive any specific level of pricing, that we have no contractual right to any change in pricing under the ESI Agreement and that its sole obligation is to negotiate proposed pricing terms in good faith. In the alternative, Express Scripts claimed that we have been unjustly enriched by its payment of $4,675 at the time we entered into the ESI Agreement. In March 2017, the District Court granted our motion to dismiss Express Scripts’ counterclaims for (i) breach of the implied covenant of good faith and fair dealing, and (ii) unjust enrichment with prejudice. After such ruling, Express Scripts’ only remaining claims were for breach of contract and declaratory relief. In August 2021, Express Scripts filed a motion for summary judgment, which we opposed. In March 2022, the District Court granted in part and denied in part Express Scripts’ motion for summary judgment. The District Court dismissed our declaratory judgment claim, our breach of contract claim for failure to prove damages and most of our operational breach claims. As a result of the summary judgment decision, the only remaining claims as of the filing of this Quarterly Report on Form 10-Q were (i) our operational breach claim based on Express Scripts’ prior authorization processes and (ii) Express Scripts’ counterclaim for breach of the market check provision of the ESI Agreement. Express Scripts filed a second motion for summary judgment in June 2022, challenging our remaining operational breach claims, which the District Court denied in March 2023. In November 2023, the District Court issued a final judgment ending the lawsuit in the District Court after the parties settled and stipulated to dismiss the only remaining claim that had not been disposed of by the court order or stipulation. In December 2023, we filed a notice of appeal with the United States Court of Appeals for the Second Circuit (the “Second Circuit”), regarding the Pricing Claim. Mediation ordered by the Second Circuit occurred in March 2024 and was unsuccessful. We submitted our appellant brief in April 2024. Briefing was completed in August 2024, and oral arguments before the Second Circuit are scheduled for October 2024. The ultimate outcome of this appeal cannot be presently determined. Medicare Risk Adjustment Litigation In March 2020, the U.S. Department of Justice (“DOJ”) filed a civil lawsuit against Elevance Health, Inc. in the District Court in a case captioned United States v. Anthem, Inc. The DOJ’s suit alleges, among other things, that we falsely certified the accuracy of the diagnosis data we submitted to the Centers for Medicare and Medicaid Services (“CMS”) for risk-adjustment purposes under Medicare Part C and knowingly failed to delete inaccurate diagnosis codes. The DOJ further alleges that, as a result of these purported acts, we caused CMS to calculate the risk-adjustment payments based on inaccurate diagnosis information, which enabled us to obtain unspecified amounts of payments in Medicare funds in violation of the False Claims Act. The DOJ filed an amended complaint in July 2020, alleging the same causes of action but revising some of its factual allegations. In September 2020, we filed a motion to transfer the lawsuit to the Southern District of Ohio, a motion to dismiss part of the lawsuit, and a motion to strike certain allegations in the amended complaint, all of which the District Court denied in October 2022. In November 2022, we filed an answer. In March 2023, discovery commenced, and an initial case management conference was held in April 2023. Fact discovery is ongoing. In July 2024, the District Court issued a scheduling order setting the deadlines for the completion of fact discovery in February 2025 and October 2025 for the completion of expert discovery. We intend to continue to vigorously defend this suit, which we believe is without merit; however, the ultimate outcome cannot be presently determined. Other Contingencies From time to time, we and certain of our subsidiaries are parties to various legal proceedings, many of which involve claims for coverage encountered in the ordinary course of business. We, like Health Maintenance Organizations (“HMOs”) and health insurers generally, exclude certain healthcare and other services from coverage under our HMO, Preferred Provider Organizations and other plans. We are, in the ordinary course of business, subject to the claims of our enrollees arising out of decisions to restrict or deny reimbursement for uncovered services. The loss of even one such claim, if it results in a significant punitive damage award, could have a material adverse effect on us. In addition, the risk of potential liability under punitive damage theories may increase significantly the difficulty of obtaining reasonable reimbursement of coverage claims. Contractual Obligations and Commitments In September 2024, we extended our agreement with a vendor for information technology infrastructure and related management and support services through June 2029. Our remaining commitment under this agreement at September 30, 2024 is approximately $2,107. We have the ability to terminate the agreement upon the occurrence of certain events, subject to early termination fees. CarelonRx markets and offers pharmacy services to our affiliated health plan customers throughout the country, as well as to customers outside of the health plans we own. The comprehensive pharmacy services portfolio 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. CarelonRx delegates certain core pharmacy services to CaremarkPCS Health, L.L.C. (“CVS”), which is a subsidiary of CVS Health Corporation, pursuant to an agreement that is set to terminate on December 31, 2025. In the first quarter of 2024, CarelonRx began assuming responsibility from CVS for pharmacy mail order front-end intake. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2024 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | Capital Stock Use of Capital – Dividends and Stock Repurchase Program We regularly review the appropriate use of capital, including acquisitions, common stock and debt security repurchases and dividends to shareholders. The declaration and payment of any dividends or repurchases of our common stock or debt is at the discretion of our Board of Directors and depends upon our financial condition, results of operations, future liquidity needs, regulatory and capital requirements and other factors deemed relevant by our Board of Directors. A summary of our cash dividend activity for the nine months ended September 30, 2024 and 2023 is as follows: Declaration Date Record Date Payment Date Cash Dividend per Share Total Nine Months Ended September 30, 2024 January 23, 2024 March 8, 2024 March 22, 2024 $1.63 $ 379 April 16, 2024 June 10, 2024 June 25, 2024 $1.63 $ 378 July 16, 2024 September 10, 2024 September 25, 2024 $1.63 $ 378 Nine Months Ended September 30, 2023 January 24, 2023 March 10, 2023 March 24, 2023 $1.48 $ 351 April 18, 2023 June 9, 2023 June 23, 2023 $1.48 $ 350 July 18, 2023 September 8, 2023 September 22, 2023 $1.48 $ 348 On October 15, 2024, our Audit Committee declared a fourth quarter 2024 dividend to shareholders of $1.63 per share, payable on December 20, 2024 to shareholders of record at the close of business on December 5, 2024. Under our Board of Directors’ authorization, we maintain a common stock repurchase program. On October 15, 2024, our Audit Committee, pursuant to authorization granted by the Board of Directors, authorized an $8,000 increase to the common stock repurchase program. As of October 15, 2024, $11,111 was available for repurchase under the program. No duration has been placed on the common stock repurchase program, and we reserve the right to discontinue the program at any time. Repurchases may be made from time to time at prevailing market prices, subject to certain restrictions on volume, pricing and timing. The repurchases are effected from time to time in the open market, through negotiated transactions, including accelerated share repurchase agreements, and through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Our stock repurchase program is discretionary, as we are under no obligation to repurchase shares. We repurchase shares under the program when we believe it is a prudent use of capital. The excess cost of the repurchased shares over par value is charged on a pro rata basis to additional paid-in capital and retained earnings. A summary of common stock repurchases for the nine months ended September 30, 2024 and 2023 is as follows: Nine Months Ended September 30 2024 2023 Shares repurchased 2.1 3.8 Average price per share $ 506.80 $ 462.42 Aggregate cost $ 1,089 $ 1,748 Authorization remaining at the end of the period $ 3,111 $ 5,128 For additional information regarding the use of capital for debt security repurchases, see Note 10, “Debt,” included in this Quarterly Report on Form 10-Q and Note 13, “Debt,” to our audited consolidated financial statements as of and for the year ended December 31, 2023 included in Part II, Item 8 of our 2023 Annual Report on Form 10-K. Stock Incentive Plan s A summary of stock option activity for the nine months ended September 30, 2024 is as follows: Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2024 3.0 $ 327.14 Granted 0.5 499.64 Exercised (0.5) 288.96 Forfeited or expired (0.1) 452.26 Outstanding at September 30, 2024 2.9 361.50 5.91 $ 462 Exercisable at September 30, 2024 1.9 299.01 4.70 $ 424 A summary of the status of nonvested restricted stock activity, including restricted stock units and performance units, for the nine months ended September 30, 2024 is as follows: Restricted Weighted- Nonvested at January 1, 2024 1.1 $ 423.94 Granted 0.6 502.01 Vested (0.6) 355.63 Forfeited (0.1) 475.21 Nonvested at September 30, 2024 1.0 478.61 During the nine months ended September 30, 2024, we granted approximately 0.2 restricted stock units that are contingent upon us achieving earnings targets over the three-year period from 2024 to 2026. These grants have been included in the activity shown above but will be subject to adjustment at the end of 2026 based on results in the three-year period. Fair Value We use a binomial lattice valuation model to estimate the fair value of all stock options granted. For a more detailed discussion of our stock incentive plan fair value methodology, see Note 15, “Capital Stock,” to our audited consolidated financial statements as of and for the year ended December 31, 2023 included in Part II, Item 8 of our 2023 Annual Report on Form 10-K. The following weighted-average assumptions were used to estimate the fair values of options granted during the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30 2024 2023 Risk-free interest rate 4.28 % 3.95 % Volatility factor 28.00 % 29.00 % Quarterly dividend yield 0.327 % 0.316 % Weighted-average expected life (years) 4.40 4.40 The following weighted-average fair values per option or share were determined for the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30 2024 2023 Options granted during the period $ 134.65 $ 127.08 Restricted stock awards granted during the period 502.01 469.30 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income A reconciliation of the components of accumulated other comprehensive (loss) income at September 30, 2024 and 2023 is as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net unrealized investment (losses) gains: Beginning of period balance $ (714) $ (1,449) $ (632) $ (1,755) Other comprehensive income (loss) before reclassifications, net of tax benefit (expense) of $(263), $145, $(189) and $119, respectively 841 (464) 595 (317) Amounts reclassified from accumulated other comprehensive income, net of tax benefit of $(17), $(35), $(65) and $(86), respectively 46 112 210 273 Other comprehensive income (loss) 887 (352) 805 (44) Other comprehensive income attributable to noncontrolling interests, net of tax benefit (expense) of $0, $(1), $0 and $(1), respectively — 2 — — End of period balance 173 (1,799) 173 (1,799) Non-credit components of impairments on investments: Beginning of period balance (3) (6) (3) (3) Other comprehensive income (loss), net of tax expense of $0, $(1), $0 and $0, respectively — 2 — (1) End of period balance (3) (4) (3) (4) Net cash flow hedges: Beginning of period balance (205) (214) (211) (229) Other comprehensive income, net of tax benefit (expense) of $0, $(1), $(2) and $6, respectively 2 1 8 16 End of period balance (203) (213) (203) (213) Pension and other postretirement benefits: Beginning of period balance (451) (494) (459) (499) Other comprehensive income, net of tax expense of $(1), $0, $(3) and $(2), respectively 3 2 11 7 End of period balance (448) (492) (448) (492) Future policy benefits: Beginning of period balance 9 12 10 13 Other comprehensive income (loss), net of tax benefit of $0, $0, $0 and $0, respectively (1) 3 (2) 2 End of period balance 8 15 8 15 Foreign currency translation adjustments: Beginning of period balance (23) (15) (18) (17) Other comprehensive income (loss), net of tax benefit of $0, $1, $0 and $0, respectively 7 (4) 2 (2) End of period balance (16) (19) (16) (19) Total: Total beginning of period accumulated other comprehensive loss (1,387) (2,166) (1,313) (2,490) Total other comprehensive (loss) income, net of tax expense of $(281), $109, $(259), and $37, respectively 898 (348) 824 (22) Total other comprehensive loss attributable to noncontrolling interests, net of tax benefit (expense) of $0, $(1), $0 and $(1) respectively — 2 — — Total end of period accumulated other comprehensive loss $ (489) $ (2,512) $ (489) $ (2,512) |
Shareholders' Earnings per Shar
Shareholders' Earnings per Share | 9 Months Ended |
Sep. 30, 2024 | |
Earnings Per Share [Abstract] | |
Shareholders' Earnings per Share | Shareholders' Earnings per Share The denominator for basic and diluted shareholders' earnings per share for the three and nine months ended September 30, 2024 and 2023 is as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Denominator for basic shareholders' earnings per share – weighted-average shares 231.9 235.3 232.3 236.4 Effect of dilutive securities – employee stock options, nonvested restricted stock awards and convertible debentures 1.2 1.2 1.3 1.6 Denominator for diluted shareholders' earnings per share 233.1 236.5 233.6 238.0 During the three months ended September 30, 2024 and 2023, weighted-average shares related to certain stock options of 0.5 and 0.9 respectively, were excluded from the denominator for diluted shareholders' earnings per share because the stock options were anti-dilutive. During the nine months ended September 30, 2024 and 2023, weighted-average shares related to certain stock options of 0.5 and 0.8, respectively, were excluded from each of the denominators for diluted earnings per share because the stock options were anti-dilutive. During the three and nine months ended September 30, 2024, we issued approximately 0.0 and 0.6 restricted stock units under our stock incentive plans, 0.0 and 0.2 of which vesting is contingent upon us meeting specified annual earnings targets for the three-year period of 2024 through 2026. During the three and nine months ended September 30, 2023, we issued approximately 0.0 and 0.6 restricted stock units under our stock incentive plans, 0.0 and 0.2 of which vesting is contingent upon us meeting specified annual earnings targets for the three-year period of 2023 through 2025. The contingent restricted stock units have been excluded from the denominators for diluted shareholders' earnings per share and will be included only if and when the contingency is met. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 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 nine months ended September 30, 2024 and 2023 is as follows: Carelon Health CarelonRx Carelon Total Corporate Eliminations Total Three Months Ended September 30, 2024 Premiums $ 36,448 $ — $ 680 $ 680 $ — $ (319) $ 36,809 Product revenue — 5,887 — 5,887 — — 5,887 Service fees 1,830 2 201 203 (10) — 2,023 Operating revenue - unaffiliated 38,278 5,889 881 6,770 (10) (319) 44,719 Operating revenue - affiliated — 3,254 3,757 7,011 84 (7,095) — Operating revenue - total $ 38,278 $ 9,143 $ 4,638 $ 13,781 $ 74 $ (7,414) $ 44,719 Operating gain (loss) $ 1,604 $ 619 $ 184 $ 803 $ (999) $ — $ 1,408 Depreciation and amortization of property and equipment — — — — 231 — 231 Three Months Ended September 30, 2023 Premiums $ 34,934 $ — $ 422 $ 422 $ — $ (97) $ 35,259 Product revenue — 5,177 — 5,177 — — 5,177 Service fees 1,810 4 218 222 12 — 2,044 Operating revenue - unaffiliated 36,744 5,181 640 5,821 12 (97) 42,480 Operating revenue - affiliated — 3,337 2,869 6,206 83 (6,289) — Operating revenue - total $ 36,744 $ 8,518 $ 3,509 $ 12,027 $ 95 $ (6,386) $ 42,480 Operating gain (loss) $ 1,834 $ 477 $ 192 $ 669 $ (747) $ — $ 1,756 Depreciation and amortization of property and equipment — — — — 220 — 220 Carelon Health CarelonRx Carelon Total Corporate Eliminations Total Nine Months Ended September 30, 2024 Premiums $ 106,926 $ — $ 1,882 $ 1,882 $ — $ (887) $ 107,921 Product revenue — 15,916 — 15,916 — — 15,916 Service fees 5,769 4 594 598 11 — 6,378 Operating revenue - unaffiliated 112,695 15,920 2,476 18,396 11 (887) 130,215 Operating revenue - affiliated — 10,064 10,716 20,780 312 (21,092) — Operating revenue - total $ 112,695 $ 25,984 $ 13,192 $ 39,176 $ 323 $ (21,979) $ 130,215 Operating gain (loss) $ 6,036 $ 1,639 $ 682 $ 2,321 $ (1,168) $ — $ 7,189 Depreciation and amortization of property and equipment — — — — 687 — 687 Nine Months Ended September 30, 2023 Premiums $ 106,701 $ — $ 1,261 $ 1,261 $ — $ (246) $ 107,716 Product revenue — 14,058 — 14,058 — — 14,058 Service fees 5,323 4 627 631 27 — 5,981 Operating revenue - unaffiliated 112,024 14,062 1,888 15,950 27 (246) 127,755 Operating revenue - affiliated — 10,946 8,685 19,631 271 (19,902) — Operating revenue - total $ 112,024 $ 25,008 $ 10,573 $ 35,581 $ 298 $ (20,148) $ 127,755 Operating gain (loss) $ 6,121 $ 1,485 $ 578 $ 2,063 $ (969) $ — $ 7,215 Depreciation and amortization of property and equipment — — — — 659 — 659 For segment reporting, we present all capitated risk arrangements on a gross basis; therefore, eliminations also include adjustments for affiliated and unaffiliated capitated risk arrangements that are recognized on a net basis under GAAP, as well as other 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 nine months ended September 30, 2024 and 2023 is as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Reportable segments’ operating revenue $ 44,719 $ 42,480 $ 130,215 $ 127,755 Net investment income 551 493 1,524 1,296 Net losses on financial instruments (125) (124) (371) (358) (Loss) gain on sale of business (39) — 201 — Total revenues $ 45,106 $ 42,849 $ 131,569 $ 128,693 A reconciliation of income before income tax expense to reportable segments’ operating gain included in our consolidated statements of income for the three and nine months ended September 30, 2024 and 2023 is as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Income before income tax expense $ 1,373 $ 1,654 $ 7,298 $ 6,714 Net investment income (551) (493) (1,524) (1,296) Net losses on financial instruments 125 124 371 358 Loss (gain) on sale of business 39 — (201) — Interest expense 300 259 845 771 Amortization of other intangible assets 122 212 400 668 Reportable segments’ operating gain $ 1,408 $ 1,756 $ 7,189 $ 7,215 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Shareholders' net income | $ 1,016 | $ 1,289 | $ 5,562 | $ 5,131 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2024 shares | Sep. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Mark Kaye [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On September 26, 2024, Mark Kaye, our Executive Vice President and Chief Financial Officer, terminated his Rule 10b5-1 stock trading plan, which was adopted on April 22, 2024, pursuant to which he had authorized the sale of up to 6,758 shares of our common stock. This trading plan was entered into and terminated in accordance with the Company’s policies regarding transactions in our securities. No sales occurred pursuant to this Rule 10b5-1 trading plan prior to termination. | |
Name | Mark Kaye | |
Title | Executive Vice President and Chief Financial Officer | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | September 26, 2024 | |
Aggregate Available | 6,758 | 6,758 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting. Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements. We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”), unless the information contained in those disclosures materially changed or is required by GAAP. In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three and nine months ended September 30, 2024 and 2023 have been recorded. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024, or any other period. The seasonal nature of portions of our healthcare and related benefits business, as well as competitive and other market conditions, may cause full-year results to differ from estimates based upon our interim results of operations. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K. |
Foreign Currency | Certain of our subsidiaries operate outside of the United States and have functional currencies other than the U.S. dollar (“USD”). We translate the assets and liabilities of those subsidiaries to USD using the exchange rate in effect at the end of the period. We translate the revenues and expenses of those subsidiaries to USD using the average exchange rates in effect during the period. The net effect of these translation adjustments is included in “Foreign currency translation adjustments” in our consolidated statements of comprehensive income. |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Investments | Investments: We classify fixed maturity securities in our investment portfolio as “available-for-sale” and report those securities at fair value. Certain fixed maturity securities are available to support current operations and, accordingly, we classify such investments as current assets without regard to their contractual maturity. Investments used to satisfy contractual, regulatory or other requirements are classified as long-term, without regard to contractual maturity. If a fixed maturity security is in an unrealized loss position and we have the intent to sell the fixed maturity security, or it is more likely than not that we will have to sell the fixed maturity security before recovery of its amortized cost basis, we write down the fixed maturity security’s cost basis to fair value and record an impairment loss in our consolidated statements of income. For impaired fixed maturity securities that we do not intend to sell or if it is more likely than not that we will not have to sell such securities, but we expect that we will not fully recover the amortized cost basis, we recognize the credit component of the impairment as an allowance for credit loss in our consolidated balance sheets and record an impairment loss in our consolidated statements of income. The non-credit component of the impairment is recognized in “Accumulated other comprehensive loss.” Furthermore, unrealized losses entirely caused by non-credit-related factors related to fixed maturity securities for which we expect to fully recover the amortized cost basis continue to be recognized in “Accumulated other comprehensive loss.” The credit component of an impairment is determined primarily by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting our best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of purchase. For mortgage-backed and asset-backed securities, cash flow estimates are based on assumptions regarding the underlying collateral, including prepayment speeds, vintage, type of underlying asset, geographic concentrations, default rates, recoveries and changes in value. For all other securities, cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings and estimates regarding timing and amount of recoveries associated with a default. For asset-backed securities included in “Fixed maturity securities”, we recognize income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities. Such adjustments are reported within net investment income. The changes in fair value of our marketable equity securities are recognized in our results of operations within net losses on financial instruments. Certain marketable equity securities are held to satisfy contractual obligations or for other business purposes and are reported under the caption “Other invested assets” in our consolidated balance sheets. Mortgage loans on real estate are classified as held for investment and are reported at their amortized cost basis net of allowance under the caption “Other invested assets” in our consolidated balance sheets. Amortized cost is the amount at which the loan is originated, adjusted for accrued interest, amortization of premium, discount and net deferred fees or costs, collection of cash and write-offs. We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management. The cash surrender value of the corporate-owned life insurance policies is reported under the caption “Other invested assets” in our consolidated balance sheets. We use the equity method of accounting for investments in companies in which our ownership interest may enable us to influence the operating or financial decisions of the investee company. Our proportionate share of equity in net income of these unconsolidated affiliates is reported within net investment income. The equity method investments are reported under the caption “Other invested assets” in our consolidated balance sheets. Investment income is recorded when earned. All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. We recognize the collateral as an asset, which is reported under the caption “Other current assets” in our consolidated balance sheets, and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category in our consolidated balance sheets. Unrealized gains or losses on securities lending collateral are included in “Accumulated other comprehensive loss” as a separate component of shareholders’ equity. The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions. To the extent the loaned securities’ value appreciates faster or depreciates slower than the value of the collateral pledged, we are exposed to the risk of the shortfall. As a primary mitigating mechanism, the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall, if any, is collected accordingly. Secondarily, the collateral level is set at 102% of the value of the loaned securities, which provides a cushion before any shortfall arises. The investment of the cash collateral is subject to market risk, which is managed by limiting the investments to higher quality and shorter duration instruments. |
Receivables | Receivables: Receivables are reported net of amounts for expected credit losses. The allowance for doubtful accounts is based on historical collection trends, future forecasts and our judgment regarding the ability to collect specific accounts. Premium receivables include the uncollected amounts from employer risk-based groups, individuals and government programs for insurance services. Premium receivables are reported net of an allowance for doubtful accounts of $185 and $212 at September 30, 2024 and December 31, 2023, respectively. Self-funded receivables include administrative fees, claims and other amounts due from fee-based customers for administrative services. Self-funded receivables are reported net of an allowance for doubtful accounts of $89 and $87 at September 30, 2024 and December 31, 2023, respectively. Other receivables include pharmacy rebates, provider advances, claims recoveries, reinsurance receivables, proceeds due from brokers on investment trades, accrued investment income and other miscellaneous amounts due to us. These receivables are reported net of an allowance for doubtful accounts of $1,140 and $941 at September 30, 2024 and December 31, 2023, respectively. |
Revenue Recognition | Revenue Recognition: For our non-risk-based contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheet at September 30, 2024 or December 31, 2023. For the three and nine months ended September 30, 2024 and 2023, revenue recognized from performance obligations related to prior periods, such as changes in transaction price, were not material. For contracts that have an original, expected duration of greater than one year, revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material. |
Recently Adopted Accounting Guidance and Recent Accounting Guidance Not Yet Adopted | Recently Adopted Accounting Guidance: In November 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-11, Financial Services—Insurance (Topic 944): Effective Date and Early Application (“ASU 2020-11”). The amendments in ASU 2020-11 changed the effective date and early application of Accounting Standards Update No. 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts , which was issued in November 2018. The amendments in ASU 2020-11 extended the original effective date by one year to our interim and annual reporting periods beginning after December 15, 2022. This standard requires us to review cash flow assumptions for our long-duration insurance contracts at least annually and recognize the effect of changes in future cash flow assumptions in net income. This standard also requires us to update discount rate assumptions quarterly and recognize the effect of changes in these assumptions in other comprehensive income. The rate used to discount our reserves for future policy benefits is based on an estimate of the yield for an upper-medium grade fixed-income instrument with a duration profile matching that of our liabilities. In addition, this standard changes the amortization method for deferred acquisition costs. We adopted these amendments on January 1, 2023, using the modified retrospective transition method for changes to the liability for future policy benefits and deferred acquisition costs as of the transition date, January 1, 2021. The adoption did not have an overall material impact on our financial statements. Recent Accounting Guidance Not Yet Adopted: In December 2023, the FASB issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740) (“ASU 2023-09”). The amendments in ASU 2023-09 are intended to improve income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for our fiscal year beginning after December 15, 2024. The amendments are to be applied on a prospective basis, although retrospective adoption is permitted. We do not believe the adoption of ASU 2023-09 will have a material impact on our consolidated financial statements or disclosures. In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in ASU 2023-07 are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our fiscal year beginning after December 15, 2023, and interim periods within our fiscal year beginning after December 15, 2024. The amendments are to be applied retrospectively to all prior periods presented in the financial statements, and upon transition, the significant segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. We do not believe the adoption of ASU 2023-07 will have a material impact on our consolidated financial statements or disclosures. In August 2023, the FASB issued Accounting Standards Update No. 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement (“ASU 2023-05”). ASU 2023-05 clarifies existing guidance to reduce diversity in practice and requires a joint venture to recognize and initially measure its assets and liabilities using a new basis of accounting, at fair value, upon formation. These amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. We do not believe the adoption of ASU 2023-05 will have a material impact on our consolidated financial statements and disclosures. There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2023 Annual Report on Form 10-K that had, or are expected to have, a material impact on our consolidated financial position, results of operations, cash flows or disclosures. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Investments [Abstract] | |
Schedule of Current and Long-Term Investments, Available-For-Sale | A summary of current and long-term fixed maturity securities, available-for-sale, at September 30, 2024 and December 31, 2023 is as follows: Cost or Gross Gross Allowance Estimated September 30, 2024 Fixed maturity securities: United States Government securities $ 1,795 $ 40 $ (19) $ — $ 1,816 Government sponsored securities 160 4 (2) — 162 Foreign government securities 24 — (1) — 23 States, municipalities and political subdivisions, tax-exempt 3,431 91 (84) — 3,438 Corporate securities 15,588 607 (264) (1) 15,930 Residential mortgage-backed securities 3,878 75 (171) — 3,782 Commercial mortgage-backed securities 1,967 39 (49) (1) 1,956 Other asset-backed securities 2,779 45 (84) — 2,740 Total fixed maturity securities $ 29,622 $ 901 $ (674) $ (2) $ 29,847 December 31, 2023 Fixed maturity securities: United States Government securities $ 1,873 $ 25 $ (54) $ — $ 1,844 Government sponsored securities 112 1 (3) — 110 Foreign government securities 5 1 (2) — 4 States, municipalities and political subdivisions, tax-exempt 3,985 69 (152) — 3,902 Corporate securities 14,838 322 (580) (2) 14,578 Residential mortgage-backed securities 4,071 40 (279) — 3,832 Commercial mortgage-backed securities 2,174 13 (138) (2) 2,047 Other asset-backed securities 4,278 25 (130) — 4,173 Total fixed maturity securities $ 31,336 $ 496 $ (1,338) $ (4) $ 30,490 |
Schedule of Aggregate Fair Value and Gross Unrealized Loss of Fixed Maturity Securities in an Unrealized Loss Position | For fixed maturity securities in an unrealized loss position at September 30, 2024 and December 31, 2023, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position: Less than 12 Months 12 Months or Greater (Securities are whole amounts) Number of Estimated Gross Number of Estimated Gross September 30, 2024 Fixed maturity securities: United States Government securities 8 $ 98 $ — 29 $ 387 $ (19) Government sponsored securities 1 13 — 36 47 (2) Foreign government securities 1 — — 2 4 (1) States, municipalities and political subdivisions, tax-exempt 62 85 (1) 715 1,111 (83) Corporate securities 207 348 (7) 1,469 3,382 (257) Residential mortgage-backed securities 31 58 (1) 1,405 1,568 (170) Commercial mortgage-backed securities 27 91 (1) 339 784 (48) Other asset-backed securities 58 129 (8) 264 835 (76) Total fixed maturity securities 395 $ 822 $ (18) 4,259 $ 8,118 $ (656) December 31, 2023 Fixed maturity securities: United States Government securities 35 $ 552 $ (9) 44 $ 370 $ (45) Government sponsored securities — — — 40 52 (3) Foreign government securities — — — 2 4 (2) States, municipalities and political subdivisions, tax-exempt 203 354 (2) 1,034 1,811 (150) Corporate securities 389 608 (15) 2,624 6,871 (565) Residential mortgage-backed securities 183 438 (5) 1,620 2,075 (274) Commercial mortgage-backed securities 112 353 (6) 534 1,317 (132) Other asset-backed securities 110 394 (18) 761 2,342 (112) Total fixed maturity securities 1,032 $ 2,699 $ (55) 6,659 $ 14,842 $ (1,283) |
Schedule of Amortized Cost and Fair Value of Fixed Maturity Securities, By Contractual Maturity | The amortized cost and fair value of fixed maturity securities at September 30, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations. Amortized Estimated Due in one year or less $ 264 $ 259 Due after one year through five years 5,110 5,117 Due after five years through ten years 11,404 11,627 Due after ten years 6,999 7,106 Mortgage-backed securities 5,845 5,738 Total fixed maturity securities $ 29,622 $ 29,847 |
Schedule of Marketable Equity Securities | A summary of marketable equity securities at September 30, 2024 and December 31, 2023 is as follows: September 30, 2024 December 31, 2023 Equity securities: Exchange traded funds $ 994 $ 106 Common equity securities 40 45 Private equity securities 79 78 Total $ 1,113 $ 229 |
Schedule of Net Investment (Losses) and Gains | Net investment (losses) and gains for the three and nine months ended September 30, 2024 and 2023 are as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net (losses) gains: Fixed maturity securities: Gross realized gains from sales $ 53 $ 13 $ 92 $ 34 Gross realized losses from sales (107) (164) (354) (377) Impairment (losses) gains recognized in income (9) 2 (13) (8) Net realized losses from sales of fixed maturity securities (63) (149) (275) (351) Equity securities: Unrealized gains (losses) recognized on equity securities still held at the end of the period 3 — 4 (1) Net realized (losses) gains recognized on equity securities sold during the period (3) 2 (4) 5 Net gains on equity securities — 2 — 4 Other investments: Gross gains 35 86 45 91 Gross losses — (68) (25) (62) Impairment losses recognized in income (98) (8) (124) (37) Net (losses) gains on other investments (63) 10 (104) (8) Net losses on investments $ (126) $ (137) $ (379) $ (355) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements by Level | A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at September 30, 2024 and December 31, 2023 is as follows: Level I Level II Level III Total September 30, 2024 Assets: Cash equivalents $ 2,680 $ — $ — $ 2,680 Fixed maturity securities, available-for-sale: United States Government securities — 1,816 — 1,816 Government sponsored securities — 162 — 162 Foreign government securities — 23 — 23 States, municipalities and political subdivisions, tax-exempt — 3,438 — 3,438 Corporate securities — 15,885 45 15,930 Residential mortgage-backed securities — 3,782 — 3,782 Commercial mortgage-backed securities — 1,956 — 1,956 Other asset-backed securities — 1,953 787 2,740 Total fixed maturity securities, available-for-sale — 29,015 832 29,847 Equity securities: Exchange traded funds 994 — — 994 Common equity securities 13 27 — 40 Private equity securities — — 79 79 Total equity securities 1,007 27 79 1,113 Other invested assets - common equity securities 24 — — 24 Securities lending collateral — 2,538 — 2,538 Derivatives - other assets — 97 — 97 Total assets $ 3,711 $ 31,677 $ 911 $ 36,299 Percentage of total assets at fair value 10% 87% 3% 100% Liabilities: Derivatives - other liabilities $ — $ (26) $ — $ (26) Total liabilities $ — $ (26) $ — $ (26) December 31, 2023 Assets: Cash equivalents $ 2,210 $ — $ — $ 2,210 Fixed maturity securities, available-for-sale: United States Government securities — 1,844 — 1,844 Government sponsored securities — 110 — 110 Foreign government securities — 4 — 4 States, municipalities and political subdivisions, tax-exempt — 3,902 — 3,902 Corporate securities — 14,532 46 14,578 Residential mortgage-backed securities — 3,830 2 3,832 Commercial mortgage-backed securities — 2,047 — 2,047 Other asset-backed securities — 3,634 539 4,173 Total fixed maturity securities, available-for-sale — 29,903 587 30,490 Equity securities: Exchange traded funds 106 — — 106 Common equity securities 12 33 — 45 Private equity securities — — 78 78 Total equity securities 118 33 78 229 Other invested assets - common equity securities 111 — — 111 Securities lending collateral — 2,382 — 2,382 Derivatives - other assets — 10 — 10 Total assets $ 2,439 $ 32,328 $ 665 $ 35,432 Percentage of total assets at fair value 7% 91% 2% 100% Liabilities: Derivatives - other liabilities $ — $ (40) $ — $ (40) Total liabilities $ — $ (40) $ — $ (40) |
Schedule of Estimated Fair Value by Level | A summary of the estimated fair values by level for each class of financial instruments that are recorded at their carrying value on our consolidated balance sheets at September 30, 2024 and December 31, 2023 is as follows: Carrying Estimated Fair Value Level I Level II Level III Total September 30, 2024 Assets: Other invested assets $ 8,041 $ — $ — $ 8,024 $ 8,024 Liabilities: Debt: Short-term borrowings 360 — 360 — 360 Notes 26,788 — 25,602 — 25,602 December 31, 2023 Assets: Other invested assets $ 5,996 $ — $ — $ 5,972 $ 5,972 Liabilities: Debt: Short-term borrowings 225 — 225 — 225 Notes 24,895 — 23,569 — 23,569 |
Medical Claims Payable (Tables)
Medical Claims Payable (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Insurance [Abstract] | |
Schedule of Reconciliation of Medical Claims Payable | A reconciliation of the beginning and ending balances for medical claims payable for the nine months ended September 30, 2024 and 2023 is as follows: 2024 2023 Gross medical claims payable, beginning of period $ 15,865 $ 15,348 Ceded medical claims payable, beginning of period (7) (6) Net medical claims payable, beginning of period 15,858 15,342 Net incurred medical claims: Current period 92,715 91,058 Prior periods redundancies (1,610) (1,342) Total net incurred medical claims 91,105 89,716 Net payments attributable to: Current period medical claims 79,220 77,048 Prior periods medical claims 12,567 12,097 Total net payments 91,787 89,145 Net medical claims payable, end of period 15,176 15,913 Ceded medical claims payable, end of period 9 4 Gross medical claims payable, end of period $ 15,185 $ 15,917 |
Schedule of Reconciliation of Net Incurred Medical Claims to Benefit Expense | The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for the nine months ended September 30, 2024 and 2023 is as follows: 2024 2023 Total net incurred medical claims $ 91,105 $ 89,716 Quality improvement and other claims expense 2,962 3,280 Benefit expense $ 94,067 $ 92,996 |
Schedule of Reconciliation of Short Duration Medical Claims Payable to the Consolidated Medical Claims Payable | The reconciliation of the medical claims payable reflected in the tables above to the consolidated ending balance for medical claims payable included in the consolidated balance sheet, as of September 30, 2024 is as follows: Total Net medical claims payable, end of period $ 15,176 Ceded medical claims payable, end of period 9 Insurance lines other than short duration 269 Liabilities held for sale (108) Gross medical claims payable, end of period $ 15,346 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Cash Dividend Activity | A summary of our cash dividend activity for the nine months ended September 30, 2024 and 2023 is as follows: Declaration Date Record Date Payment Date Cash Dividend per Share Total Nine Months Ended September 30, 2024 January 23, 2024 March 8, 2024 March 22, 2024 $1.63 $ 379 April 16, 2024 June 10, 2024 June 25, 2024 $1.63 $ 378 July 16, 2024 September 10, 2024 September 25, 2024 $1.63 $ 378 Nine Months Ended September 30, 2023 January 24, 2023 March 10, 2023 March 24, 2023 $1.48 $ 351 April 18, 2023 June 9, 2023 June 23, 2023 $1.48 $ 350 July 18, 2023 September 8, 2023 September 22, 2023 $1.48 $ 348 |
Schedule of Share Repurchases | A summary of common stock repurchases for the nine months ended September 30, 2024 and 2023 is as follows: Nine Months Ended September 30 2024 2023 Shares repurchased 2.1 3.8 Average price per share $ 506.80 $ 462.42 Aggregate cost $ 1,089 $ 1,748 Authorization remaining at the end of the period $ 3,111 $ 5,128 |
Schedule of Stock Option Activity | A summary of stock option activity for the nine months ended September 30, 2024 is as follows: Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2024 3.0 $ 327.14 Granted 0.5 499.64 Exercised (0.5) 288.96 Forfeited or expired (0.1) 452.26 Outstanding at September 30, 2024 2.9 361.50 5.91 $ 462 Exercisable at September 30, 2024 1.9 299.01 4.70 $ 424 |
Schedule of Nonvested Restricted Stock Activity Including Restricted Stock Units | A summary of the status of nonvested restricted stock activity, including restricted stock units and performance units, for the nine months ended September 30, 2024 is as follows: Restricted Weighted- Nonvested at January 1, 2024 1.1 $ 423.94 Granted 0.6 502.01 Vested (0.6) 355.63 Forfeited (0.1) 475.21 Nonvested at September 30, 2024 1.0 478.61 |
Schedule of Weighted-Average Assumptions Used to Estimate the Fair Value of Options Granted During the Periods | The following weighted-average assumptions were used to estimate the fair values of options granted during the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30 2024 2023 Risk-free interest rate 4.28 % 3.95 % Volatility factor 28.00 % 29.00 % Quarterly dividend yield 0.327 % 0.316 % Weighted-average expected life (years) 4.40 4.40 |
Schedule of Weighted-Average Fair Values Determined for the Periods | The following weighted-average fair values per option or share were determined for the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30 2024 2023 Options granted during the period $ 134.65 $ 127.08 Restricted stock awards granted during the period 502.01 469.30 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Reconciliation of Components of Accumulated Other Comprehensive Loss | A reconciliation of the components of accumulated other comprehensive (loss) income at September 30, 2024 and 2023 is as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net unrealized investment (losses) gains: Beginning of period balance $ (714) $ (1,449) $ (632) $ (1,755) Other comprehensive income (loss) before reclassifications, net of tax benefit (expense) of $(263), $145, $(189) and $119, respectively 841 (464) 595 (317) Amounts reclassified from accumulated other comprehensive income, net of tax benefit of $(17), $(35), $(65) and $(86), respectively 46 112 210 273 Other comprehensive income (loss) 887 (352) 805 (44) Other comprehensive income attributable to noncontrolling interests, net of tax benefit (expense) of $0, $(1), $0 and $(1), respectively — 2 — — End of period balance 173 (1,799) 173 (1,799) Non-credit components of impairments on investments: Beginning of period balance (3) (6) (3) (3) Other comprehensive income (loss), net of tax expense of $0, $(1), $0 and $0, respectively — 2 — (1) End of period balance (3) (4) (3) (4) Net cash flow hedges: Beginning of period balance (205) (214) (211) (229) Other comprehensive income, net of tax benefit (expense) of $0, $(1), $(2) and $6, respectively 2 1 8 16 End of period balance (203) (213) (203) (213) Pension and other postretirement benefits: Beginning of period balance (451) (494) (459) (499) Other comprehensive income, net of tax expense of $(1), $0, $(3) and $(2), respectively 3 2 11 7 End of period balance (448) (492) (448) (492) Future policy benefits: Beginning of period balance 9 12 10 13 Other comprehensive income (loss), net of tax benefit of $0, $0, $0 and $0, respectively (1) 3 (2) 2 End of period balance 8 15 8 15 Foreign currency translation adjustments: Beginning of period balance (23) (15) (18) (17) Other comprehensive income (loss), net of tax benefit of $0, $1, $0 and $0, respectively 7 (4) 2 (2) End of period balance (16) (19) (16) (19) Total: Total beginning of period accumulated other comprehensive loss (1,387) (2,166) (1,313) (2,490) Total other comprehensive (loss) income, net of tax expense of $(281), $109, $(259), and $37, respectively 898 (348) 824 (22) Total other comprehensive loss attributable to noncontrolling interests, net of tax benefit (expense) of $0, $(1), $0 and $(1) respectively — 2 — — Total end of period accumulated other comprehensive loss $ (489) $ (2,512) $ (489) $ (2,512) |
Shareholders' Earnings per Sh_2
Shareholders' Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Denominator for Basic and Diluted Earnings Per Share | The denominator for basic and diluted shareholders' earnings per share for the three and nine months ended September 30, 2024 and 2023 is as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Denominator for basic shareholders' earnings per share – weighted-average shares 231.9 235.3 232.3 236.4 Effect of dilutive securities – employee stock options, nonvested restricted stock awards and convertible debentures 1.2 1.2 1.3 1.6 Denominator for diluted shareholders' earnings per share 233.1 236.5 233.6 238.0 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Reportable Segment | Financial data by reportable segment for the three and nine months ended September 30, 2024 and 2023 is as follows: Carelon Health CarelonRx Carelon Total Corporate Eliminations Total Three Months Ended September 30, 2024 Premiums $ 36,448 $ — $ 680 $ 680 $ — $ (319) $ 36,809 Product revenue — 5,887 — 5,887 — — 5,887 Service fees 1,830 2 201 203 (10) — 2,023 Operating revenue - unaffiliated 38,278 5,889 881 6,770 (10) (319) 44,719 Operating revenue - affiliated — 3,254 3,757 7,011 84 (7,095) — Operating revenue - total $ 38,278 $ 9,143 $ 4,638 $ 13,781 $ 74 $ (7,414) $ 44,719 Operating gain (loss) $ 1,604 $ 619 $ 184 $ 803 $ (999) $ — $ 1,408 Depreciation and amortization of property and equipment — — — — 231 — 231 Three Months Ended September 30, 2023 Premiums $ 34,934 $ — $ 422 $ 422 $ — $ (97) $ 35,259 Product revenue — 5,177 — 5,177 — — 5,177 Service fees 1,810 4 218 222 12 — 2,044 Operating revenue - unaffiliated 36,744 5,181 640 5,821 12 (97) 42,480 Operating revenue - affiliated — 3,337 2,869 6,206 83 (6,289) — Operating revenue - total $ 36,744 $ 8,518 $ 3,509 $ 12,027 $ 95 $ (6,386) $ 42,480 Operating gain (loss) $ 1,834 $ 477 $ 192 $ 669 $ (747) $ — $ 1,756 Depreciation and amortization of property and equipment — — — — 220 — 220 Carelon Health CarelonRx Carelon Total Corporate Eliminations Total Nine Months Ended September 30, 2024 Premiums $ 106,926 $ — $ 1,882 $ 1,882 $ — $ (887) $ 107,921 Product revenue — 15,916 — 15,916 — — 15,916 Service fees 5,769 4 594 598 11 — 6,378 Operating revenue - unaffiliated 112,695 15,920 2,476 18,396 11 (887) 130,215 Operating revenue - affiliated — 10,064 10,716 20,780 312 (21,092) — Operating revenue - total $ 112,695 $ 25,984 $ 13,192 $ 39,176 $ 323 $ (21,979) $ 130,215 Operating gain (loss) $ 6,036 $ 1,639 $ 682 $ 2,321 $ (1,168) $ — $ 7,189 Depreciation and amortization of property and equipment — — — — 687 — 687 Nine Months Ended September 30, 2023 Premiums $ 106,701 $ — $ 1,261 $ 1,261 $ — $ (246) $ 107,716 Product revenue — 14,058 — 14,058 — — 14,058 Service fees 5,323 4 627 631 27 — 5,981 Operating revenue - unaffiliated 112,024 14,062 1,888 15,950 27 (246) 127,755 Operating revenue - affiliated — 10,946 8,685 19,631 271 (19,902) — Operating revenue - total $ 112,024 $ 25,008 $ 10,573 $ 35,581 $ 298 $ (20,148) $ 127,755 Operating gain (loss) $ 6,121 $ 1,485 $ 578 $ 2,063 $ (969) $ — $ 7,215 Depreciation and amortization of property and equipment — — — — 659 — 659 |
Schedule of Reconciliation of Reportable Segments Operating Revenues to Total Revenues Reported in the Consolidated Statements of Income | A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three and nine months ended September 30, 2024 and 2023 is as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Reportable segments’ operating revenue $ 44,719 $ 42,480 $ 130,215 $ 127,755 Net investment income 551 493 1,524 1,296 Net losses on financial instruments (125) (124) (371) (358) (Loss) gain on sale of business (39) — 201 — Total revenues $ 45,106 $ 42,849 $ 131,569 $ 128,693 |
Schedule of Reconciliation of Income Before Income Tax Expense to Reportable Segments Operating Gain Included in the Consolidated Statements of Income | A reconciliation of income before income tax expense to reportable segments’ operating gain included in our consolidated statements of income for the three and nine months ended September 30, 2024 and 2023 is as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Income before income tax expense $ 1,373 $ 1,654 $ 7,298 $ 6,714 Net investment income (551) (493) (1,524) (1,296) Net losses on financial instruments 125 124 371 358 Loss (gain) on sale of business 39 — (201) — Interest expense 300 259 845 771 Amortization of other intangible assets 122 212 400 668 Reportable segments’ operating gain $ 1,408 $ 1,756 $ 7,189 $ 7,215 |
Organization (Details)
Organization (Details) individual in Millions | 9 Months Ended |
Sep. 30, 2024 individual segment county state | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of medical members served | individual | 46 |
Number of counties in the Kansas City area the Company does not serve | county | 30 |
Number of states in which the Company is licensed to conduct insurance operations | state | 50 |
Number of reportable segments | segment | 4 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions | Sep. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 339 | $ 294 |
Securities lending transactions, initial collateral percentage value | 102% | |
Premium receivable, allowance for doubtful accounts | $ 185 | 212 |
Self-funded receivables, allowance for doubtful accounts | 89 | 87 |
Other receivables, allowance for doubtful accounts | $ 1,140 | $ 941 |
Business Acquisitions and Div_2
Business Acquisitions and Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Aug. 06, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 25,967 | $ 25,967 | $ 25,317 | |||
Goodwill, purchase accounting adjustments | (2) | |||||
Gain on sale of business | (39) | $ 0 | 201 | $ 0 | ||
StanCorp Financial Group, Inc | Discontinued Operations, Disposed of by Sale | ||||||
Business Acquisition [Line Items] | ||||||
Gain on sale of business | 201 | |||||
Contingent purchase price adjustment | (39) | |||||
Mosaic Health | ||||||
Business Acquisition [Line Items] | ||||||
Equity method investments | $ 2,580 | $ 2,580 | $ 2,580 | |||
Ownership percentage | 35% | 35% | 35% | |||
Paragon Healthcare, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 411 | $ 411 | ||||
Goodwill | 751 | 751 | ||||
BioPlus Parent, LLC and Subsidiaries | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | 820 | 820 | ||||
Goodwill | $ 893 | $ 893 |
Business Optimization Initiat_2
Business Optimization Initiatives (Details) - 2023-2024 Business Efficiency Program - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2024 | Dec. 31, 2023 | |
Employee Termination | ||
Business Optimization Initiatives [Line Items] | ||
Liability for employee termination costs | $ 267 | $ 191 |
Corporate & Other | ||
Business Optimization Initiatives [Line Items] | ||
Restructuring and related cost, cost incurred to date | 268 | |
Corporate & Other | Write-Off of Information Technology Assets | ||
Business Optimization Initiatives [Line Items] | ||
Restructuring and related cost, cost incurred to date | 72 | |
Corporate & Other | Employee Severance and Relocation | ||
Business Optimization Initiatives [Line Items] | ||
Restructuring and related cost, cost incurred to date | 165 | |
Corporate & Other | Facility Closing | ||
Business Optimization Initiatives [Line Items] | ||
Restructuring and related cost, cost incurred to date | 31 | |
Corporate & Other | Employee Termination | ||
Business Optimization Initiatives [Line Items] | ||
Charges or releases related to employee termination costs | 165 | |
Payments | $ 89 |
Investments - Schedule of Curre
Investments - Schedule of Current and Long-Term Fixed Maturity Securities, Available-For-Sale (Details) - USD ($) $ in Millions | Sep. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 29,622 | $ 31,336 |
Gross Unrealized Gains | 901 | 496 |
Gross Unrealized Losses | (674) | (1,338) |
Allowance For Credit Losses | (2) | (4) |
Estimated Fair Value | 29,847 | 30,490 |
United States Government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 1,795 | 1,873 |
Gross Unrealized Gains | 40 | 25 |
Gross Unrealized Losses | (19) | (54) |
Allowance For Credit Losses | 0 | 0 |
Estimated Fair Value | 1,816 | 1,844 |
Government sponsored securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 160 | 112 |
Gross Unrealized Gains | 4 | 1 |
Gross Unrealized Losses | (2) | (3) |
Allowance For Credit Losses | 0 | 0 |
Estimated Fair Value | 162 | 110 |
Foreign government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 24 | 5 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (1) | (2) |
Allowance For Credit Losses | 0 | 0 |
Estimated Fair Value | 23 | 4 |
States, municipalities and political subdivisions, tax-exempt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 3,431 | 3,985 |
Gross Unrealized Gains | 91 | 69 |
Gross Unrealized Losses | (84) | (152) |
Allowance For Credit Losses | 0 | 0 |
Estimated Fair Value | 3,438 | 3,902 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 15,588 | 14,838 |
Gross Unrealized Gains | 607 | 322 |
Gross Unrealized Losses | (264) | (580) |
Allowance For Credit Losses | (1) | (2) |
Estimated Fair Value | 15,930 | 14,578 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 3,878 | 4,071 |
Gross Unrealized Gains | 75 | 40 |
Gross Unrealized Losses | (171) | (279) |
Allowance For Credit Losses | 0 | 0 |
Estimated Fair Value | 3,782 | 3,832 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 1,967 | 2,174 |
Gross Unrealized Gains | 39 | 13 |
Gross Unrealized Losses | (49) | (138) |
Allowance For Credit Losses | (1) | (2) |
Estimated Fair Value | 1,956 | 2,047 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 2,779 | 4,278 |
Gross Unrealized Gains | 45 | 25 |
Gross Unrealized Losses | (84) | (130) |
Allowance For Credit Losses | 0 | 0 |
Estimated Fair Value | $ 2,740 | $ 4,173 |
Investments - Schedule of Aggre
Investments - Schedule of Aggregate Fair Value and Gross Unrealized Loss of Fixed Maturity Securities in an Unrealized Loss Position (Details) $ in Millions | Sep. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 395 | 1,032 |
Estimated fair value, less than 12 months | $ 822 | $ 2,699 |
Gross unrealized loss, less than 12 months | $ (18) | $ (55) |
Number of securities, 12 months or greater | security | 4,259 | 6,659 |
Estimated fair value, 12 months or greater | $ 8,118 | $ 14,842 |
Gross unrealized loss, 12 months or greater | $ (656) | $ (1,283) |
United States Government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 8 | 35 |
Estimated fair value, less than 12 months | $ 98 | $ 552 |
Gross unrealized loss, less than 12 months | $ 0 | $ (9) |
Number of securities, 12 months or greater | security | 29 | 44 |
Estimated fair value, 12 months or greater | $ 387 | $ 370 |
Gross unrealized loss, 12 months or greater | $ (19) | $ (45) |
Government sponsored securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 1 | 0 |
Estimated fair value, less than 12 months | $ 13 | $ 0 |
Gross unrealized loss, less than 12 months | $ 0 | $ 0 |
Number of securities, 12 months or greater | security | 36 | 40 |
Estimated fair value, 12 months or greater | $ 47 | $ 52 |
Gross unrealized loss, 12 months or greater | $ (2) | $ (3) |
Foreign government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 1 | 0 |
Estimated fair value, less than 12 months | $ 0 | $ 0 |
Gross unrealized loss, less than 12 months | $ 0 | $ 0 |
Number of securities, 12 months or greater | security | 2 | 2 |
Estimated fair value, 12 months or greater | $ 4 | $ 4 |
Gross unrealized loss, 12 months or greater | $ (1) | $ (2) |
States, municipalities and political subdivisions, tax-exempt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 62 | 203 |
Estimated fair value, less than 12 months | $ 85 | $ 354 |
Gross unrealized loss, less than 12 months | $ (1) | $ (2) |
Number of securities, 12 months or greater | security | 715 | 1,034 |
Estimated fair value, 12 months or greater | $ 1,111 | $ 1,811 |
Gross unrealized loss, 12 months or greater | $ (83) | $ (150) |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 207 | 389 |
Estimated fair value, less than 12 months | $ 348 | $ 608 |
Gross unrealized loss, less than 12 months | $ (7) | $ (15) |
Number of securities, 12 months or greater | security | 1,469 | 2,624 |
Estimated fair value, 12 months or greater | $ 3,382 | $ 6,871 |
Gross unrealized loss, 12 months or greater | $ (257) | $ (565) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 31 | 183 |
Estimated fair value, less than 12 months | $ 58 | $ 438 |
Gross unrealized loss, less than 12 months | $ (1) | $ (5) |
Number of securities, 12 months or greater | security | 1,405 | 1,620 |
Estimated fair value, 12 months or greater | $ 1,568 | $ 2,075 |
Gross unrealized loss, 12 months or greater | $ (170) | $ (274) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 27 | 112 |
Estimated fair value, less than 12 months | $ 91 | $ 353 |
Gross unrealized loss, less than 12 months | $ (1) | $ (6) |
Number of securities, 12 months or greater | security | 339 | 534 |
Estimated fair value, 12 months or greater | $ 784 | $ 1,317 |
Gross unrealized loss, 12 months or greater | $ (48) | $ (132) |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 58 | 110 |
Estimated fair value, less than 12 months | $ 129 | $ 394 |
Gross unrealized loss, less than 12 months | $ (8) | $ (18) |
Number of securities, 12 months or greater | security | 264 | 761 |
Estimated fair value, 12 months or greater | $ 835 | $ 2,342 |
Gross unrealized loss, 12 months or greater | $ (76) | $ (112) |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Aug. 06, 2024 | Dec. 31, 2023 | |
Schedule of Investments [Line Items] | ||||||
Allowance for credit losses | $ 2 | $ 2 | $ 4 | |||
Proceeds from sales, maturities, calls or redemptions of fixed maturity securities | 3,870 | $ 6,236 | 12,284 | $ 21,321 | ||
Other noncurrent assets | 2,603 | 2,603 | 1,967 | |||
Accrued investment income receivable | 300 | 300 | 301 | |||
Fair value of collateral received at time of securities lending transactions | $ 2,538 | $ 2,538 | $ 2,380 | |||
Securities lending transactions ratio of fair value of collateral held to fair value of securities loaned | 102% | 102% | 102% | |||
Line of Credit | Mosaic Health | ||||||
Schedule of Investments [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 200 | $ 200 | ||||
Line of Credit | Mosaic Health | Equity Method Investee | ||||||
Schedule of Investments [Line Items] | ||||||
Other noncurrent assets | 188 | 188 | ||||
Revolving Credit Facility | Mosaic Health | ||||||
Schedule of Investments [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 500 | 500 | ||||
Mosaic Health | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investments | $ 2,580 | $ 2,580 | $ 2,580 | |||
Ownership percentage | 35% | 35% | 35% | |||
United States Government securities | ||||||
Schedule of Investments [Line Items] | ||||||
Allowance for credit losses | $ 0 | $ 0 | $ 0 | |||
Residential mortgage-backed securities | ||||||
Schedule of Investments [Line Items] | ||||||
Allowance for credit losses | 0 | 0 | 0 | |||
Overnight and Continuous | Cash | ||||||
Schedule of Investments [Line Items] | ||||||
Collateral received for securities loaned, at carrying value | 2,320 | 2,320 | 2,255 | |||
Overnight and Continuous | United States Government securities | ||||||
Schedule of Investments [Line Items] | ||||||
Collateral received for securities loaned, at carrying value | 218 | 218 | 99 | |||
Overnight and Continuous | Residential mortgage-backed securities | ||||||
Schedule of Investments [Line Items] | ||||||
Collateral received for securities loaned, at carrying value | $ 0 | $ 0 | $ 26 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value of Fixed Maturity Securities, By Contractual Maturity (Details) - USD ($) $ in Millions | Sep. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in one year or less | $ 264 | |
Due after one year through five years | 5,110 | |
Due after five years through ten years | 11,404 | |
Due after ten years | 6,999 | |
Mortgage-backed securities | 5,845 | |
Total fixed maturity securities | 29,622 | $ 31,336 |
Estimated Fair Value | ||
Due in one year or less | 259 | |
Due after one year through five years | 5,117 | |
Due after five years through ten years | 11,627 | |
Due after ten years | 7,106 | |
Mortgage-backed securities | 5,738 | |
Total fixed maturity securities | $ 29,847 | $ 30,490 |
Investments - Schedule of Cur_2
Investments - Schedule of Current Equity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2024 | Dec. 31, 2023 |
Equity Securities [Line Items] | ||
Equity securities | $ 1,113 | $ 229 |
Exchange traded funds | ||
Equity Securities [Line Items] | ||
Equity securities | 994 | 106 |
Common equity securities | ||
Equity Securities [Line Items] | ||
Equity securities | 40 | 45 |
Private equity securities | ||
Equity Securities [Line Items] | ||
Equity securities | $ 79 | $ 78 |
Investments - Schedule of Net I
Investments - Schedule of Net Investment (Losses) and Gains (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Other investments: | ||||
Net losses on investments | $ (126) | $ (137) | $ (379) | $ (355) |
Fixed maturity securities: | ||||
Fixed maturity securities: | ||||
Gross realized gains from sales | 53 | 13 | 92 | 34 |
Gross realized losses from sales | (107) | (164) | (354) | (377) |
Impairment (losses) gains recognized in income | (9) | 2 | (13) | (8) |
Net realized losses from sales of fixed maturity securities | (63) | (149) | (275) | (351) |
Equity securities: | ||||
Equity securities: | ||||
Unrealized gains (losses) recognized on equity securities still held at the end of the period | 3 | 0 | 4 | (1) |
Net realized (losses) gains recognized on equity securities sold during the period | (3) | 2 | (4) | 5 |
Net gains on equity securities | 0 | 2 | 0 | 4 |
Other investments: | ||||
Fixed maturity securities: | ||||
Impairment (losses) gains recognized in income | (98) | (8) | (124) | (37) |
Other investments: | ||||
Gross gains | 35 | 86 | 45 | 91 |
Gross losses | 0 | (68) | (25) | (62) |
Net (losses) gains on other investments | $ (63) | $ 10 | $ (104) | $ (8) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||||
Recognized gain on hedging derivatives | $ 1 | $ 13 | $ 8 | ||
Recognized loss on hedging derivatives | $ 3 | ||||
Business Combination, Liabilities Arising from Contingencies, Amount Recognized | 1,330 | 1,330 | |||
Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Cash flow hedges included in accumulated other comprehensive loss, net of tax | $ 203 | $ 203 | $ (211) |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements by Level (Details) $ in Millions | Sep. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Assets | ||
Cash equivalents | $ 2,680 | $ 2,210 |
Fixed maturity securities, available-for-sale: | 29,847 | 30,490 |
Other invested assets | 9,394 | 6,107 |
Securities lending collateral | 2,538 | 2,382 |
Total assets | $ 36,299 | $ 35,432 |
Percentage of total assets at fair value | 1 | 1 |
Liabilities | ||
Total liabilities | $ (26) | $ (40) |
United States Government securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 1,816 | 1,844 |
Government sponsored securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 162 | 110 |
Foreign government securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 23 | 4 |
States, municipalities and political subdivisions, tax-exempt | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 3,438 | 3,902 |
Corporate securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 15,930 | 14,578 |
Residential mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 3,782 | 3,832 |
Commercial mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 1,956 | 2,047 |
Other asset-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 2,740 | 4,173 |
Equity securities: | ||
Assets | ||
Equity securities: | 1,113 | 229 |
Equity securities: | Exchange traded funds | ||
Assets | ||
Equity securities: | 994 | 106 |
Equity securities: | Common equity securities | ||
Assets | ||
Equity securities: | 40 | 45 |
Equity securities: | Private equity securities | ||
Assets | ||
Equity securities: | 79 | 78 |
Other investments: | Common equity securities | ||
Assets | ||
Other invested assets | 24 | 111 |
Derivatives | ||
Assets | ||
Derivatives - other assets | 97 | 10 |
Liabilities | ||
Derivatives - other liabilities | (26) | (40) |
Level I | ||
Assets | ||
Cash equivalents | 2,680 | 2,210 |
Fixed maturity securities, available-for-sale: | 0 | 0 |
Securities lending collateral | 0 | 0 |
Total assets | $ 3,711 | $ 2,439 |
Percentage of total assets at fair value | 0.10 | 0.07 |
Liabilities | ||
Total liabilities | $ 0 | $ 0 |
Level I | United States Government securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level I | Government sponsored securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level I | Foreign government securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level I | States, municipalities and political subdivisions, tax-exempt | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level I | Corporate securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level I | Residential mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level I | Commercial mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level I | Other asset-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level I | Equity securities: | ||
Assets | ||
Equity securities: | 1,007 | 118 |
Level I | Equity securities: | Exchange traded funds | ||
Assets | ||
Equity securities: | 994 | 106 |
Level I | Equity securities: | Common equity securities | ||
Assets | ||
Equity securities: | 13 | 12 |
Level I | Equity securities: | Private equity securities | ||
Assets | ||
Equity securities: | 0 | 0 |
Level I | Other investments: | Common equity securities | ||
Assets | ||
Other invested assets | 24 | 111 |
Level I | Derivatives | ||
Assets | ||
Derivatives - other assets | 0 | 0 |
Liabilities | ||
Derivatives - other liabilities | 0 | 0 |
Level II | ||
Assets | ||
Cash equivalents | 0 | 0 |
Fixed maturity securities, available-for-sale: | 29,015 | 29,903 |
Securities lending collateral | 2,538 | 2,382 |
Total assets | $ 31,677 | $ 32,328 |
Percentage of total assets at fair value | 0.87 | 0.91 |
Liabilities | ||
Total liabilities | $ (26) | $ (40) |
Level II | United States Government securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 1,816 | 1,844 |
Level II | Government sponsored securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 162 | 110 |
Level II | Foreign government securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 23 | 4 |
Level II | States, municipalities and political subdivisions, tax-exempt | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 3,438 | 3,902 |
Level II | Corporate securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 15,885 | 14,532 |
Level II | Residential mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 3,782 | 3,830 |
Level II | Commercial mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 1,956 | 2,047 |
Level II | Other asset-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 1,953 | 3,634 |
Level II | Equity securities: | ||
Assets | ||
Equity securities: | 27 | 33 |
Level II | Equity securities: | Exchange traded funds | ||
Assets | ||
Equity securities: | 0 | 0 |
Level II | Equity securities: | Common equity securities | ||
Assets | ||
Equity securities: | 27 | 33 |
Level II | Equity securities: | Private equity securities | ||
Assets | ||
Equity securities: | 0 | 0 |
Level II | Other investments: | Common equity securities | ||
Assets | ||
Other invested assets | 0 | 0 |
Level II | Derivatives | ||
Assets | ||
Derivatives - other assets | 97 | 10 |
Liabilities | ||
Derivatives - other liabilities | (26) | (40) |
Level III | ||
Assets | ||
Cash equivalents | 0 | 0 |
Fixed maturity securities, available-for-sale: | 832 | 587 |
Securities lending collateral | 0 | 0 |
Total assets | $ 911 | $ 665 |
Percentage of total assets at fair value | 0.03 | 0.02 |
Liabilities | ||
Total liabilities | $ 0 | $ 0 |
Level III | United States Government securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level III | Government sponsored securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level III | Foreign government securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level III | States, municipalities and political subdivisions, tax-exempt | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level III | Corporate securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 45 | 46 |
Level III | Residential mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 2 |
Level III | Commercial mortgage-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 0 | 0 |
Level III | Other asset-backed securities | ||
Assets | ||
Fixed maturity securities, available-for-sale: | 787 | 539 |
Level III | Equity securities: | ||
Assets | ||
Equity securities: | 79 | 78 |
Level III | Equity securities: | Exchange traded funds | ||
Assets | ||
Equity securities: | 0 | 0 |
Level III | Equity securities: | Common equity securities | ||
Assets | ||
Equity securities: | 0 | 0 |
Level III | Equity securities: | Private equity securities | ||
Assets | ||
Equity securities: | 79 | 78 |
Level III | Other investments: | Common equity securities | ||
Assets | ||
Other invested assets | 0 | 0 |
Level III | Derivatives | ||
Assets | ||
Derivatives - other assets | 0 | 0 |
Liabilities | ||
Derivatives - other liabilities | $ 0 | $ 0 |
Fair Value - Schedule of Estima
Fair Value - Schedule of Estimated Fair Value by Level (Details) - USD ($) $ in Millions | Sep. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Other invested assets | $ 9,394 | $ 6,107 |
Debt: | ||
Short-term borrowings | 360 | 225 |
Fair Value, Nonrecurring | Reported Value Measurement | ||
Assets | ||
Other invested assets | 8,041 | 5,996 |
Debt: | ||
Short-term borrowings | 360 | 225 |
Notes | 26,788 | 24,895 |
Fair Value, Recurring | Estimate of Fair Value Measurement | ||
Assets | ||
Other invested assets | 8,024 | 5,972 |
Debt: | ||
Short-term borrowings | 360 | 225 |
Notes | 25,602 | 23,569 |
Fair Value, Recurring | Level I | Estimate of Fair Value Measurement | ||
Assets | ||
Other invested assets | 0 | 0 |
Debt: | ||
Short-term borrowings | 0 | 0 |
Notes | 0 | 0 |
Fair Value, Recurring | Level II | Estimate of Fair Value Measurement | ||
Assets | ||
Other invested assets | 0 | 0 |
Debt: | ||
Short-term borrowings | 360 | 225 |
Notes | 25,602 | 23,569 |
Fair Value, Recurring | Level III | Estimate of Fair Value Measurement | ||
Assets | ||
Other invested assets | 8,024 | 5,972 |
Debt: | ||
Short-term borrowings | 0 | 0 |
Notes | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 365 | $ 354 | $ 1,740 | $ 1,554 | |
Effective income tax rate | 26.60% | 21.40% | 23.80% | 23.10% | |
Income taxes receivable | $ 312 | $ 312 | $ 543 |
Medical Claims Payable - Schedu
Medical Claims Payable - Schedule of Reconciliation of Medical Claims Payable (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross medical claims payable, beginning of period | $ 15,865 | $ 15,348 |
Ceded medical claims payable, beginning of period | (7) | (6) |
Net medical claims payable, beginning of period | 15,858 | 15,342 |
Net incurred medical claims: | ||
Current period | 92,715 | 91,058 |
Prior periods redundancies | (1,610) | (1,342) |
Total net incurred medical claims | 91,105 | 89,716 |
Net payments attributable to: | ||
Current period medical claims | 79,220 | 77,048 |
Prior periods medical claims | 12,567 | 12,097 |
Total net payments | 91,787 | 89,145 |
Net medical claims payable, end of period | 15,176 | 15,913 |
Ceded medical claims payable, end of period | 9 | 4 |
Gross medical claims payable, end of period | $ 15,185 | $ 15,917 |
Medical Claims Payable - Narrat
Medical Claims Payable - Narrative (Details) $ in Millions | Sep. 30, 2024 USD ($) |
2022 | |
Claims Development [Line Items] | |
Net incurred but not reported liabilities plus expected development on reported claims | $ 285 |
2023 | |
Claims Development [Line Items] | |
Net incurred but not reported liabilities plus expected development on reported claims | 1,396 |
2024 | |
Claims Development [Line Items] | |
Net incurred but not reported liabilities plus expected development on reported claims | $ 13,495 |
Medical Claims Payable - Sche_2
Medical Claims Payable - Schedule of Reconciliation of Net Incurred Medical Claims to Benefit Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Insurance [Abstract] | ||||
Total net incurred medical claims | $ 91,105 | $ 89,716 | ||
Quality improvement and other claims expense | 2,962 | 3,280 | ||
Net benefit expense | $ 32,949 | $ 30,606 | $ 94,067 | $ 92,996 |
Medical Claims Payable - Sche_3
Medical Claims Payable - Schedule of Reconciliation of the Claims Development to the Claims Liability (Details) - USD ($) $ in Millions | Sep. 30, 2024 | Dec. 31, 2023 |
Insurance [Abstract] | ||
Net medical claims payable, end of period | $ 15,176 | |
Ceded medical claims payable, end of period | 9 | |
Insurance lines other than short duration | 269 | |
Liabilities held for sale | (108) | |
Gross medical claims payable, end of period | $ 15,346 | $ 16,111 |
Debt (Details)
Debt (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2024 USD ($) | Aug. 15, 2024 USD ($) | May 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 4,000 | |||
Commercial paper | 0 | $ 0 | ||
Surplus Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 25 | 25 | ||
Federal Home Loan Bank Advances | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings from the FHLB | 360 | 225 | ||
Senior Notes | Senior Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 26,763 | 24,870 | ||
Senior Unsecured Notes | 5.150% 2029 Notes Due | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 600 | |||
Debt instrument interest rate | 5.15% | |||
Senior Unsecured Notes | 5.375% 2034 Notes Due | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 1,000 | |||
Debt instrument interest rate | 5.375% | |||
Senior Unsecured Notes | 5.650% 2054 Notes Due | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 1,000 | |||
Debt instrument interest rate | 5.65% | |||
Senior Unsecured Notes | 3.500% Senior Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 3.50% | |||
Debt instruments, repurchased face amount | $ 800 | |||
Line of Credit | 5-Year Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 4,000 | |||
Senior revolving credit facility term | 5 years | |||
Covenant, debt-to-capital ratio (not more than) | 0.60 | |||
Debt-to-capital ratio | 0.382 | |||
Amounts outstanding | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2022 USD ($) appeal | Mar. 31, 2016 USD ($) | Sep. 30, 2024 USD ($) | |
Commitments and Contingencies [Line Items] | |||
Payments | $ 506 | ||
Number of notices of appeal | appeal | 4 | ||
Technology Infrastructure and Related Management and Support Services | |||
Commitments and Contingencies [Line Items] | |||
Long-term purchase commitment, amount | $ 2,107 | ||
BCBS Antitrust Litigation | |||
Commitments and Contingencies [Line Items] | |||
Payments | $ 596 | ||
Aggregate settlement amount | $ 666 | ||
Anthem, Inc. v. Express Scripts, Inc. | |||
Commitments and Contingencies [Line Items] | |||
Proceeds originally received at time of divestiture | $ 4,675 | ||
Anthem, Inc. v. Express Scripts, Inc. | Damages for Pharmacy Pricing | |||
Commitments and Contingencies [Line Items] | |||
Approximate amount of damages sought for breaches | 14,800 | ||
Anthem, Inc. v. Express Scripts, Inc. | Damages for Operational Breaches | |||
Commitments and Contingencies [Line Items] | |||
Approximate amount of damages sought for breaches | $ 158 |
Capital Stock - Schedule of Cas
Capital Stock - Schedule of Cash Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Class of Stock Disclosures [Abstract] | ||||||||
Cash Dividend per Share (in dollars per share) | $ 1.63 | $ 1.63 | $ 1.63 | $ 1.48 | $ 1.48 | $ 1.48 | ||
Total | $ 378 | $ 378 | $ 379 | $ 348 | $ 350 | $ 351 | $ 1,135 | $ 1,049 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 15, 2024 | Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Dividends declared (in dollars per share) | $ 1.63 | $ 1.48 | $ 4.89 | $ 4.44 | |
Shares available for repurchase under stock repurchase program, amount | $ 3,111 | $ 5,128 | $ 3,111 | $ 5,128 | |
Grants (in shares) | 0.6 | ||||
Subsequent Event | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Dividends declared (in dollars per share) | $ 1.63 | ||||
Increase in amount of stock authorized in the Stock Repurchase Program | $ 8,000 | ||||
Shares available for repurchase under stock repurchase program, amount | $ 11,111 | ||||
Restricted Stock Units | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Grants (in shares) | 0.2 | ||||
Award vesting period | 3 years |
Capital Stock - Schedule of Sha
Capital Stock - Schedule of Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Class of Stock Disclosures [Abstract] | ||
Shares repurchased (in shares) | 2.1 | 3.8 |
Average price per share (in dollars per share) | $ 506.80 | $ 462.42 |
Aggregate cost | $ 1,089 | $ 1,748 |
Authorization remaining at the end of the period | $ 3,111 | $ 5,128 |
Capital Stock - Schedule of Sto
Capital Stock - Schedule of Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2024 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 3 |
Granted (in shares) | shares | 0.5 |
Exercised (in shares) | shares | (0.5) |
Forfeited or expired (in shares) | shares | (0.1) |
Outstanding at end of period (in shares) | shares | 2.9 |
Weighted- Average Option Price per Share | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 327.14 |
Granted (in dollars per share) | $ / shares | 499.64 |
Exercised (in dollars per share) | $ / shares | 288.96 |
Forfeited or expired (in dollars per share) | $ / shares | 452.26 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 361.50 |
Stock Options, Additional Disclosures | |
Exercisable at end of period (in shares) | shares | 1.9 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 299.01 |
Outstanding at end of period, Weighted-Average Remaining Contractual Life | 5 years 10 months 28 days |
Exercisable at end of period, Weighted-Average Remaining Contractual Life | 4 years 8 months 12 days |
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 462 |
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 424 |
Capital Stock - Schedule of Non
Capital Stock - Schedule of Nonvested Restricted Stock Activity Including Restricted Stock Units (Details) - $ / shares shares in Millions | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Restricted Stock Shares and Units | ||
Nonvested at beginning of period (in shares) | 1.1 | |
Grants (in shares) | 0.6 | |
Vested (in shares) | (0.6) | |
Forfeited (in shares) | (0.1) | |
Nonvested at end of period (in shares) | 1 | |
Weighted- Average Grant Date Fair Value per Share | ||
Nonvested at beginning of period (in dollars per share) | $ 423.94 | |
Granted (in dollars per share) | 502.01 | $ 469.30 |
Vested (in dollars per share) | 355.63 | |
Forfeited (in dollars per share) | 475.21 | |
Nonvested at end of period (in dollars per share) | $ 478.61 |
Capital Stock - Fair Values of
Capital Stock - Fair Values of Options Granted During the Period Estimated Using Weighted-Average Assumptions (Details) | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Class of Stock Disclosures [Abstract] | ||
Risk-free interest rate | 4.28% | 3.95% |
Volatility factor | 28% | 29% |
Quarterly dividend yield | 0.327% | 0.316% |
Weighted-average expected life (years) | 4 years 4 months 24 days | 4 years 4 months 24 days |
Capital Stock - Schedule of Wei
Capital Stock - Schedule of Weighted-Average Fair Values Determined for the Periods (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Class of Stock Disclosures [Abstract] | ||
Options granted during the period (in dollars per share) | $ 134.65 | $ 127.08 |
Restricted stock awards granted during the period (in dollars per share) | $ 502.01 | $ 469.30 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Schedule of Reconciliation of the Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 42,297 | $ 40,710 | $ 39,405 | $ 38,312 | $ 37,460 | $ 36,330 | $ 39,405 | $ 36,330 |
Other comprehensive income (loss) | 898 | (22) | (52) | (348) | (116) | 442 | 824 | (22) |
Other comprehensive income attributable to noncontrolling interests, net of tax benefit (expense) of $0, $(1), $0 and $(1), respectively | 0 | 2 | 0 | 0 | ||||
Ending balance | 43,879 | 42,297 | 40,710 | 38,539 | 38,312 | 37,460 | 43,879 | 38,539 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (1,387) | (1,313) | (2,166) | (2,490) | (1,313) | (2,490) | ||
Ending balance | (489) | (1,387) | (2,512) | (2,166) | (489) | (2,512) | ||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Including Noncontrolling Interest | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (714) | (632) | (1,449) | (1,755) | (632) | (1,755) | ||
Other comprehensive income (loss) before reclassifications, net of tax benefit (expense) of $(263), $145, $(189) and $119, respectively | 841 | (464) | 595 | (317) | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax benefit of $(17), $(35), $(65) and $(86), respectively | 46 | 112 | 210 | 273 | ||||
Other comprehensive income (loss) | 887 | (352) | 805 | (44) | ||||
Ending balance | 173 | (714) | (1,799) | (1,449) | 173 | (1,799) | ||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Noncontrolling Interest | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Other comprehensive income attributable to noncontrolling interests, net of tax benefit (expense) of $0, $(1), $0 and $(1), respectively | 0 | 2 | 0 | 0 | ||||
Non-credit components of impairments on investments: | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (3) | (3) | (6) | (3) | (3) | (3) | ||
Other comprehensive income (loss) | 0 | 2 | 0 | (1) | ||||
Ending balance | (3) | (3) | (4) | (6) | (3) | (4) | ||
Net cash flow hedges: | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (205) | (211) | (214) | (229) | (211) | (229) | ||
Other comprehensive income (loss) | 2 | 1 | 8 | 16 | ||||
Ending balance | (203) | (205) | (213) | (214) | (203) | (213) | ||
Pension and other postretirement benefits: | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (451) | (459) | (494) | (499) | (459) | (499) | ||
Other comprehensive income (loss) | 3 | 2 | 11 | 7 | ||||
Ending balance | (448) | (451) | (492) | (494) | (448) | (492) | ||
Future policy benefits: | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 9 | 10 | 12 | 13 | 10 | 13 | ||
Other comprehensive income (loss) | (1) | 3 | (2) | 2 | ||||
Ending balance | 8 | 9 | 15 | 12 | 8 | 15 | ||
Foreign currency translation adjustments: | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (23) | $ (18) | (15) | $ (17) | (18) | (17) | ||
Other comprehensive income (loss) | 7 | (4) | 2 | (2) | ||||
Ending balance | $ (16) | $ (23) | $ (19) | $ (15) | $ (16) | $ (19) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Reconciliation of the Components of Accumulated Other Comprehensive Loss (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income attributable to noncontrolling interests, tax | $ 0 | $ (1) | $ 0 | $ (1) |
Net gain (loss) recognized in other comprehensive income, tax (expense) benefit | (281) | 109 | (259) | 37 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Including Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, tax | (263) | 145 | (189) | 119 |
Reclassification from AOCI, current period, tax | (17) | (35) | (65) | (86) |
Non-credit components of impairments on investments: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gain (loss) recognized in other comprehensive income, tax (expense) benefit | 0 | (1) | 0 | 0 |
Net cash flow hedges: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gain (loss) recognized in other comprehensive income, tax (expense) benefit | 0 | (1) | (2) | 6 |
Pension and other postretirement benefits: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gain (loss) recognized in other comprehensive income, tax (expense) benefit | (1) | 0 | (3) | (2) |
Future policy benefits: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gain (loss) recognized in other comprehensive income, tax (expense) benefit | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net gain (loss) recognized in other comprehensive income, tax (expense) benefit | 0 | 1 | 0 | 0 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income attributable to noncontrolling interests, tax | $ 0 | $ (1) | $ 0 | $ (1) |
Shareholders' Earnings per Sh_3
Shareholders' Earnings per Share - Denominator for Basic and Diluted Earnings per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Denominator for basic shareholders' earnings per share – weighted-average shares | 231.9 | 235.3 | 232.3 | 236.4 |
Effect of dilutive securities – employee stock options, nonvested restricted stock awards and convertible debentures | 1.2 | 1.2 | 1.3 | 1.6 |
Denominator for diluted shareholders' earnings per share | 233.1 | 236.5 | 233.6 | 238 |
Shareholders' Earnings per Sh_4
Shareholders' Earnings per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 0.5 | 0.9 | 0.5 | 0.8 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 0 | 0 | 0.6 | 0.6 |
Restricted Stock Units - Contingent | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 0 | 0 | 0.2 | 0.2 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Information - Schedule
Segment Information - Schedule of Financial Data by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Premiums | $ 36,809 | $ 35,259 | $ 107,921 | $ 107,716 |
Operating revenue | 44,719 | 42,480 | 130,215 | 127,755 |
Operating gain (loss) | 1,408 | 1,756 | 7,189 | 7,215 |
Depreciation and amortization of property and equipment | 231 | 220 | 687 | 659 |
Product revenue | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 5,887 | 5,177 | 15,916 | 14,058 |
Service fees | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 2,023 | 2,044 | 6,378 | 5,981 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | (319) | (97) | (887) | (246) |
Operating revenue | (7,414) | (6,386) | (21,979) | (20,148) |
Operating gain (loss) | 0 | 0 | 0 | 0 |
Depreciation and amortization of property and equipment | 0 | 0 | 0 | 0 |
Eliminations | Product revenue | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 0 | 0 | 0 | 0 |
Eliminations | Service fees | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 0 | 0 | 0 | 0 |
Health Benefits | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 36,448 | 34,934 | 106,926 | 106,701 |
Operating revenue | 38,278 | 36,744 | 112,695 | 112,024 |
Operating gain (loss) | 1,604 | 1,834 | 6,036 | 6,121 |
Depreciation and amortization of property and equipment | 0 | 0 | 0 | 0 |
Health Benefits | Operating Segments | Product revenue | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 0 | 0 | 0 | 0 |
Health Benefits | Operating Segments | Service fees | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 1,830 | 1,810 | 5,769 | 5,323 |
Total | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 680 | 422 | 1,882 | 1,261 |
Operating revenue | 13,781 | 12,027 | 39,176 | 35,581 |
Operating gain (loss) | 803 | 669 | 2,321 | 2,063 |
Depreciation and amortization of property and equipment | 0 | 0 | 0 | 0 |
Total | Operating Segments | Product revenue | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 5,887 | 5,177 | 15,916 | 14,058 |
Total | Operating Segments | Service fees | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 203 | 222 | 598 | 631 |
CarelonRx | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating revenue | 9,143 | 8,518 | 25,984 | 25,008 |
Operating gain (loss) | 619 | 477 | 1,639 | 1,485 |
Depreciation and amortization of property and equipment | 0 | 0 | 0 | 0 |
CarelonRx | Operating Segments | Product revenue | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 5,887 | 5,177 | 15,916 | 14,058 |
CarelonRx | Operating Segments | Service fees | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 2 | 4 | 4 | 4 |
Carelon Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 680 | 422 | 1,882 | 1,261 |
Operating revenue | 4,638 | 3,509 | 13,192 | 10,573 |
Operating gain (loss) | 184 | 192 | 682 | 578 |
Depreciation and amortization of property and equipment | 0 | 0 | 0 | 0 |
Carelon Services | Operating Segments | Product revenue | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 0 | 0 | 0 | 0 |
Carelon Services | Operating Segments | Service fees | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 201 | 218 | 594 | 627 |
Corporate & Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating revenue | 74 | 95 | 323 | 298 |
Operating gain (loss) | (999) | (747) | (1,168) | (969) |
Depreciation and amortization of property and equipment | 231 | 220 | 687 | 659 |
Corporate & Other | Operating Segments | Product revenue | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | 0 | 0 | 0 | 0 |
Corporate & Other | Operating Segments | Service fees | ||||
Segment Reporting Information [Line Items] | ||||
Product and service revenue | (10) | 12 | 11 | 27 |
Operating revenue - unaffiliated | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 44,719 | 42,480 | 130,215 | 127,755 |
Operating revenue - unaffiliated | Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | (319) | (97) | (887) | (246) |
Operating revenue - unaffiliated | Health Benefits | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 38,278 | 36,744 | 112,695 | 112,024 |
Operating revenue - unaffiliated | Total | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 6,770 | 5,821 | 18,396 | 15,950 |
Operating revenue - unaffiliated | CarelonRx | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 5,889 | 5,181 | 15,920 | 14,062 |
Operating revenue - unaffiliated | Carelon Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 881 | 640 | 2,476 | 1,888 |
Operating revenue - unaffiliated | Corporate & Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | (10) | 12 | 11 | 27 |
Operating revenue - affiliated | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 0 | 0 | 0 | 0 |
Operating revenue - affiliated | Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | (7,095) | (6,289) | (21,092) | (19,902) |
Operating revenue - affiliated | Health Benefits | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 0 | 0 | 0 | 0 |
Operating revenue - affiliated | Total | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 7,011 | 6,206 | 20,780 | 19,631 |
Operating revenue - affiliated | CarelonRx | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 3,254 | 3,337 | 10,064 | 10,946 |
Operating revenue - affiliated | Carelon Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | 3,757 | 2,869 | 10,716 | 8,685 |
Operating revenue - affiliated | Corporate & Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | $ 84 | $ 83 | $ 312 | $ 271 |
Segment Information - Reconcili
Segment Information - Reconciliation of Reportable Segments Operating Revenues to Total Revenues Reported in the Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Segment Reporting [Abstract] | ||||
Reportable segments’ operating revenue | $ 44,719 | $ 42,480 | $ 130,215 | $ 127,755 |
Net investment income | 551 | 493 | 1,524 | 1,296 |
Net losses on financial instruments | (125) | (124) | (371) | (358) |
(Loss) gain on sale of business | (39) | 0 | 201 | 0 |
Total revenues | $ 45,106 | $ 42,849 | $ 131,569 | $ 128,693 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Income Before Income Tax Expense to Reportable Segments Operating Gain Included in the Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Segment Reporting [Abstract] | ||||
Income before income tax expense | $ 1,373 | $ 1,654 | $ 7,298 | $ 6,714 |
Net investment income | (551) | (493) | (1,524) | (1,296) |
Net losses on financial instruments | 125 | 124 | 371 | 358 |
Gain on sale of business | 39 | 0 | (201) | 0 |
Interest expense | 300 | 259 | 845 | 771 |
Amortization of other intangible assets | 122 | 212 | 400 | 668 |
Reportable segments’ operating gain | $ 1,408 | $ 1,756 | $ 7,189 | $ 7,215 |