Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | HUM |
Entity Registrant Name | HUMANA INC |
Entity Central Index Key | 49,071 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 142,860,096 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 9,865 | $ 3,877 |
Investment securities | 8,622 | 7,595 |
Receivables, less allowance for doubtful accounts of $89 in 2017 and $118 in 2016 | 922 | 1,280 |
Other current assets | 3,776 | 3,438 |
Total current assets | 23,185 | 16,190 |
Property and equipment, net | 1,560 | 1,505 |
Long-term investment securities | 2,716 | 2,203 |
Goodwill | 3,281 | 3,272 |
Other long-term assets | 2,214 | 2,226 |
Total assets | 32,956 | 25,396 |
Current liabilities: | ||
Benefits payable | 4,959 | 4,563 |
Trade accounts payable and accrued expenses | 4,888 | 2,467 |
Book overdraft | 171 | 212 |
Unearned revenues | 3,447 | 280 |
Short-term debt | 953 | 300 |
Total current liabilities | 14,418 | 7,822 |
Long-term debt | 3,977 | 3,792 |
Future policy benefits payable | 2,893 | 2,834 |
Other long-term liabilities | 457 | 263 |
Total liabilities | 21,745 | 14,711 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $1 par; 10,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.16 2/3 par; 300,000,000 shares authorized; 198,572,158 shares issued at September 30, 2017 and 198,495,007 shares issued at December 31, 2016 | 33 | 33 |
Capital in excess of par value | 2,641 | 2,562 |
Retained earnings | 13,542 | 11,454 |
Accumulated other comprehensive income (loss) | 12 | (66) |
Treasury stock, at cost, 55,712,062 shares at September 30, 2017 and 49,189,811 shares at December 31, 2016 | (5,017) | (3,298) |
Total stockholders’ equity | 11,211 | 10,685 |
Total liabilities and stockholders’ equity | $ 32,956 | $ 25,396 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 89 | $ 118 |
Preferred stock, par (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par (in dollars per share) | $ 0.1667 | $ 0.1667 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 198,572,158 | 198,495,007 |
Treasury stock, shares | 55,712,062 | 49,189,811 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Premiums | $ 12,955 | $ 13,371 | $ 39,556 | $ 40,461 |
Services | 223 | 227 | 706 | 749 |
Investment income | 104 | 96 | 316 | 291 |
Total revenues | 13,282 | 13,694 | 40,578 | 41,501 |
Operating expenses: | ||||
Benefits | 10,642 | 10,900 | 32,857 | 33,806 |
Operating costs | 1,688 | 1,739 | 4,694 | 5,172 |
Merger termination fee and related costs, net | 0 | 20 | (947) | 81 |
Depreciation and amortization | 94 | 86 | 278 | 263 |
Total operating expenses | 12,424 | 12,745 | 36,882 | 39,322 |
Income (loss) from operations | 858 | 949 | 3,696 | 2,179 |
Interest expense | 59 | 47 | 166 | 141 |
Income (loss) before income taxes | 799 | 902 | 3,530 | 2,038 |
Provision for income taxes | 300 | 452 | 1,266 | 1,023 |
Net income | $ 499 | $ 450 | $ 2,264 | $ 1,015 |
Basic earnings per common share (in dollars per share) | $ 3.46 | $ 3.01 | $ 15.56 | $ 6.80 |
Diluted earnings per common share (in dollars per share) | 3.44 | 2.98 | 15.44 | 6.73 |
Dividends per common share (in dollars per share) | $ 0.4 | $ 0.29 | $ 1.2 | $ 0.87 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 499 | $ 450 | $ 2,264 | $ 1,015 |
Other comprehensive income: | ||||
Change in gross unrealized investment gains/losses | 26 | (9) | 152 | 150 |
Effect of income taxes | (9) | 3 | (56) | (55) |
Total change in unrealized investment gains/losses, net of tax | 17 | (6) | 96 | 95 |
Reclassification adjustment for net realized gains included in investment income | 0 | (26) | (28) | (65) |
Effect of income taxes | 0 | 10 | 10 | 24 |
Total reclassification adjustment, net of tax | 0 | (16) | (18) | (41) |
Other comprehensive income (loss), net of tax | 17 | (22) | 78 | 54 |
Comprehensive income | $ 516 | $ 428 | $ 2,342 | $ 1,069 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 2,264 | $ 1,015 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized capital gains | (28) | (65) |
Stock-based compensation | 116 | 76 |
Depreciation | 303 | 289 |
Other intangible amortization | 54 | 59 |
(Benefit) provision for deferred income taxes | (54) | 54 |
Changes in operating assets and liabilities, net of effect of businesses acquired and dispositions: | ||
Receivables | 358 | 396 |
Other assets | (369) | (419) |
Benefits payable | 396 | 73 |
Other liabilities | 641 | 127 |
Unearned revenues | 3,167 | 2,987 |
Other, net | 114 | 117 |
Net cash provided by operating activities | 6,962 | 4,709 |
Cash flows from investing activities | ||
Acquisitions, net of cash acquired | (10) | (7) |
Purchases of property and equipment | (376) | (395) |
Purchases of investment securities | (4,337) | (4,533) |
Maturities of investment securities | 919 | 1,082 |
Proceeds from sales of investment securities | 2,028 | 3,319 |
Net cash used in investing activities | (1,776) | (534) |
Cash flows from financing activities | ||
Receipts from contract deposits, net | 1,931 | 350 |
Proceeds from issuance of senior notes, net | 985 | 0 |
Repayment of commercial paper, net | (153) | (1) |
Change in book overdraft | (41) | (118) |
Common stock repurchases | (1,819) | (75) |
Dividends paid | (162) | (133) |
Proceeds from stock option exercises and other | 61 | 0 |
Net cash provided by financing activities | 802 | 23 |
Increase in cash and cash equivalents | 5,988 | 4,198 |
Cash and cash equivalents at beginning of period | 3,877 | 2,571 |
Cash and cash equivalents at end of period | 9,865 | 6,769 |
Supplemental cash flow disclosures: | ||
Interest payments | 124 | 102 |
Income tax payments, net | $ 1,206 | $ 851 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT EVENTS | BASIS OF PRESENTATION AND SIGNIFICANT EVENTS The accompanying condensed consolidated financial statements are presented in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America, or GAAP, or those normally made in an Annual Report on Form 10-K. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. For further information, the reader of this Form 10-Q should refer to our Form 10-K for the year ended December 31, 2016 , that was filed with the Securities and Exchange Commission, or the SEC, on February 17, 2017 . We refer to the Form 10-K as the “ 2016 Form 10-K” in this document. References throughout this document to “we,” “us,” “our,” “Company,” and “Humana” mean Humana Inc. and its subsidiaries. The preparation of our condensed consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. The areas involving the most significant use of estimates are the estimation of benefits payable, future policy benefits payable, the impact of risk adjustment provisions related to our Medicare contracts, the valuation and related impairment recognition of investment securities, and the valuation and related impairment recognition of long-lived assets, including goodwill. These estimates are based on knowledge of current events and anticipated future events, and accordingly, actual results may ultimately differ materially from those estimates. Refer to Note 2 to the consolidated financial statements included in our 2016 Form 10-K for information on accounting policies that we consider in preparing our consolidated financial statements. The financial information has been prepared in accordance with our customary accounting practices and has not been audited. In our opinion, the information presented reflects all adjustments necessary for a fair statement of interim results. All such adjustments are of a normal and recurring nature. Sale of Closed Block of Commercial Long-Term Care Insurance Business On November 6, 2017, we entered into a definitive agreement to sell the stock of our wholly-owned subsidiary, KMG America Corporation, or KMG, to Continental General Insurance Company, or CGIC, a Texas-based insurance company wholly owned by HC2 Holdings, Inc., a diversified holding company. KMG’s subsidiary, Kanawha Insurance Company, or KIC, includes our closed block of non-strategic commercial long-term care insurance policies . Based on the terms of the definitive agreement we expect to record a net loss associated with the sale of KMG of approximately $400 million . The estimated loss includes a pretax loss of approximately $900 million , offset by the expected tax benefit of approximately $500 million . We will fund the transaction with approximately $203 million of parent company cash contributed into KMG, subject to customary adjustments, in addition to the transfer of approximately $150 million of statutory capital with the sale, which together should be more than offset by the estimated $500 million cash savings associated with the expected tax treatment of the sale. The KMG transaction is anticipated to close by the third quarter of 2018 subject to customary closing conditions, including South Carolina Department of Insurance approval. There can be no assurance we will obtain regulatory approvals needed to sell the business or do so under terms acceptable to us. Workforce Optimization During the third quarter of 2017, we initiated a voluntary early retirement program and an involuntary workforce reduction program . These programs are expected to impact approximately 2,700 associates, or 5.7% , of our workforce. As a result, we recorded estimated charges of $124 million , or $0.54 per diluted common share. At October 31, 2017, we had approximately 47,200 employees . The estimated charges were recorded at the corporate level and not allocated to the segments. This charge is included with operating costs in the condensed consolidated statements of income for the three and nine month periods ended September 30, 2017. Payments under these programs are made upon termination during the early retirement or severance pay period, primarily starting as of the beginning of the first quarter of 2018. We expect this liability to be primarily paid within the next 12 months and classified it as a current liability, included in trade accounts payable and accrued expenses. Aetna Merger On July 2, 2015, we entered into an Agreement and Plan of Merger, which we refer to in this report as the Merger Agreement, with Aetna Inc. and certain wholly owned subsidiaries of Aetna Inc., which we refer to collectively as Aetna, which set forth the terms and conditions under which we agreed to merge with, and become a wholly owned subsidiary of Aetna, a transaction we refer to in this report as the Merger. The Merger was subject to customary closing conditions, including, among other things, (i) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of necessary approvals under state insurance and healthcare laws and regulations and pursuant to certain licenses of certain of Humana’s subsidiaries, and (ii) the absence of legal restraints and prohibitions on the consummation of the Merger. On July 21, 2016, the U.S. Department of Justice and the attorneys general of certain U.S. jurisdictions filed a civil antitrust complaint in the U.S. District Court for the District of Columbia against us and Aetna, alleging that the Merger would violate Section 7 of the Clayton Antitrust Act and seeking a permanent injunction to prevent the Merger from being completed. On January 23, 2017, the Court ruled in favor of the DOJ and granted a permanent injunction of the proposed transaction. On February 14, 2017, we and Aetna agreed to mutually terminate the Merger Agreement, as our Board determined that an appeal of the Court's ruling would not be in the best interest of our stockholders. On February 16, 2017, under the terms of the Merger Agreement, we received a breakup fee of $1 billion from Aetna, which is included in our condensed consolidated statement of income in the line captioned Merger termination fee and related costs, net. Prior period Merger related transaction costs, previously included in operating costs, have been reclassified to conform to the 2017 presentation. Business Segment Reclassifications During the three months ended March 31, 2017, we realigned certain of our businesses among our reportable segments to correspond with internal management reporting changes and our previously announced planned exit from the Individual Commercial medical business on January 1, 2018. Additionally, we renamed our Group segment to the Group and Specialty segment, and began presenting the Individual Commercial business results as a separate segment rather than as part of the Retail segment. Specialty health insurance benefits, including dental, vision, other supplement health, and financial protection products, marketed to individuals are now included in the Group and Specialty segment. Specialty health insurance benefits marketed to employer groups continue to be included in the Group and Specialty segment. As a result of this realignment, our reportable segments now include Retail, Group and Specialty, Healthcare Services, and Individual Commercial. Prior period segment financial information has been recast to conform to the 2017 presentation. See Note 15 for segment financial information. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board, or FASB, issued new guidance that amends the accounting for revenue recognition. The amendments are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. Insurance contracts are not included in the scope of this new guidance. Accordingly, our premiums revenue and investment income, collectively representing approximately 98% of our consolidated external revenues for 2016, are not included in the scope of the new guidance. We will adopt the guidance using the modified retrospective approach with a cumulative effect adjustment, if any, to retained earnings. We are analyzing how we may recognize revenue under the new guidance by reviewing selected sample contracts presently in place. While we expect revenue related to our Pharmacy, Provider Services, ASO and other services businesses to remain primarily unchanged, we are still reviewing the impact of the new guidance on the customer arrangements for these businesses. Accordingly, we continue to evaluate the impact of the new standard on our results of operations, financial condition, cash flows, and disclosures. The new guidance is effective for us beginning with annual and interim periods in 2018. In February 2016, the FASB issued new guidance related to accounting for leases which requires lessees to record assets and liabilities reflecting the leased assets and lease obligations, respectively, while following the dual model for recognition in statements of income requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). The new guidance is effective for us beginning with annual and interim periods in 2019, with earlier adoption permitted, and requires retrospective application to previously issued annual and interim financial statements. We have begun the process of identifying the population of lease agreements and other arrangements that may contain embedded leases for purposes of adopting the new standard. While we expect to record significant leased assets and corresponding lease obligations based on our existing population of individual leases, we continue to evaluate the impact on our results of operations, financial position and cash flows. In June 2016, the FASB issued guidance introducing a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The guidance is effective for us beginning January 1, 2020. The new current expected credit losses (CECL) model generally calls for the immediate recognition of all expected credit losses and applies to loans, accounts and trade receivables as well as other financial assets measured at amortized cost, loan commitments and off-balance sheet credit exposures, debt securities and other financial assets measured at fair value through other comprehensive income, and beneficial interests in securitized financial assets. The new guidance replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities, and provides for additional disclosure requirements. Our investment portfolio consists of available-for-sale debt securities. We are currently evaluating the impact on our results of operations, financial condition, or cash flows. In January 2017, the FASB issued guidance which simplifies the accounting for goodwill impairment. The new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. A goodwill impairment charge would be recognized if the carrying amount of a reporting unit exceeds the estimated fair value of the reporting unit. The new guidance is effective for us beginning with annual and interim periods in 2020, with early adoption permitted, and is to be applied prospectively. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results . In March 2017, the FASB issued new guidance that amends the accounting for premium amortization on purchased callable debt securities by shortening the amortization period. This amended guidance requires the premium to be amortized to the earliest call date instead of maturity date. The new guidance is effective for us beginning with annual and interim periods in 2019. We do not expect adoption of this guidance will have a material impact on our results of operations, financial condition and cash flows. There are no other recently issued accounting standards that apply to us or that are expected to have a material impact on our results of operations, financial condition, or cash flows. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES During 2017 and 2016 , we acquired health and wellness related businesses which, individually or in the aggregate, have not had a material impact on our results of operations, financial condition, or cash flows. The results of operations and financial condition of these businesses have been included in our condensed consolidated statements of income and condensed consolidated balance sheets from the respective acquisition dates. Acquisition-related costs recognized in 2017 and 2016 were not material to our results of operations. The pro forma financial information assuming the acquisitions had occurred as of the beginning of the calendar year prior to the year of acquisition, as well as the revenues and earnings generated during the year of acquisition, were not material for disclosure purposes. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Investment securities classified as current and long-term were as follows at September 30, 2017 and December 31, 2016 , respectively: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) September 30, 2017 U.S. Treasury and other U.S. government U.S. Treasury and agency obligations $ 821 $ 1 $ (8 ) $ 814 Mortgage-backed securities 1,423 5 (19 ) 1,409 Tax-exempt municipal securities 3,457 28 (16 ) 3,469 Mortgage-backed securities: Residential 7 — — 7 Commercial 399 3 (2 ) 400 Asset-backed securities 140 — — 140 Corporate debt securities 4,921 215 (37 ) 5,099 Total debt securities $ 11,168 $ 252 $ (82 ) $ 11,338 December 31, 2016 U.S. Treasury and other U.S. government U.S. Treasury and agency obligations $ 800 $ 1 $ (15 ) $ 786 Mortgage-backed securities 1,662 6 (31 ) 1,637 Tax-exempt municipal securities 3,358 15 (68 ) 3,305 Mortgage-backed securities: Residential 9 — — 9 Commercial 307 1 (4 ) 304 Asset-backed securities 160 — — 160 Corporate debt securities 3,530 145 (78 ) 3,597 Total debt securities $ 9,826 $ 168 $ (196 ) $ 9,798 Gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows at September 30, 2017 and December 31, 2016 , respectively: Less than 12 months 12 months or more Total Fair Gross Fair Gross Fair Gross (in millions) September 30, 2017 U.S. Treasury and other U.S. U.S. Treasury and agency $ 522 $ (5 ) $ 137 $ (3 ) $ 659 $ (8 ) Mortgage-backed 986 (17 ) 82 (2 ) 1,068 (19 ) Tax-exempt municipal 1,320 (9 ) 460 (7 ) 1,780 (16 ) Mortgage-backed securities: Residential — — 4 — 4 — Commercial 115 (2 ) — — 115 (2 ) Asset-backed securities 64 — — — 64 — Corporate debt securities 999 (15 ) 469 (22 ) 1,468 (37 ) Total debt securities $ 4,006 $ (48 ) $ 1,152 $ (34 ) $ 5,158 $ (82 ) December 31, 2016 U.S. Treasury and other U.S. U.S. Treasury and agency $ 697 $ (15 ) $ 3 $ — $ 700 $ (15 ) Mortgage-backed 1,528 (31 ) 3 — 1,531 (31 ) Tax-exempt municipal 2,756 (67 ) 43 (1 ) 2,799 (68 ) Mortgage-backed securities: Residential — — 4 — 4 — Commercial 182 (3 ) 24 (1 ) 206 (4 ) Asset-backed securities 51 — 63 — 114 — Corporate debt securities 1,544 (71 ) 69 (7 ) 1,613 (78 ) Total debt securities $ 6,758 $ (187 ) $ 209 $ (9 ) $ 6,967 $ (196 ) Approximately 98% of our debt securities were investment-grade quality, with a weighted average credit rating of AA by Standard & Poor's Rating Service, or S&P, at September 30, 2017 . Most of the debt securities that were below investment-grade were rated BB , the higher end of the below investment-grade rating scale. Tax-exempt municipal securities were diversified among general obligation bonds of states and local municipalities in the United States as well as special revenue bonds issued by municipalities to finance specific public works projects such as utilities, water and sewer, transportation, or education. Our general obligation bonds are diversified across the United States with no individual state exceeding 9% . In addition, 2% of our tax-exempt securities were insured by bond insurers and had an equivalent weighted average S&P credit rating of AA exclusive of the bond insurers’ guarantee. Our investment policy limits investments in a single issuer and requires diversification among various asset types. Our unrealized losses from all securities were generated from approximately 680 positions out of a total of approximately 2,320 positions at September 30, 2017 . All issuers of securities we own that were trading at an unrealized loss at September 30, 2017 remain current on all contractual payments. After taking into account these and other factors previously described, we believe these unrealized losses primarily were caused by an increase in market interest rates in the current markets since the time the securities were purchased. At September 30, 2017 , we did not intend to sell the securities with an unrealized loss position in accumulated other comprehensive income, and it is not likely that we will be required to sell these securities before recovery of their amortized cost basis. As a result, we believe that the securities with an unrealized loss were not other-than-temporarily impaired at September 30, 2017 . The detail of realized gains (losses) related to investment securities and included within investment income was as follows for the three and nine months ended September 30, 2017 and 2016 : Three months ended Nine months ended 2017 2016 2017 2016 (in millions) Gross realized gains $ 3 $ 37 $ 34 $ 88 Gross realized losses (3 ) (11 ) (6 ) (23 ) Net realized capital gains $ — $ 26 $ 28 $ 65 There were no material other-than-temporary impairments for the three and nine months ended September 30, 2017 or 2016 . The contractual maturities of debt securities available for sale at September 30, 2017 , regardless of their balance sheet classification, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair (in millions) Due within one year $ 501 $ 502 Due after one year through five years 2,999 3,014 Due after five years through ten years 2,555 2,561 Due after ten years 3,144 3,305 Mortgage and asset-backed securities 1,969 1,956 Total debt securities $ 11,168 $ 11,338 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Financial Assets The following table summarizes our fair value measurements at September 30, 2017 and December 31, 2016 , respectively, for financial assets measured at fair value on a recurring basis: Fair Value Measurements Using Fair Quoted Prices Other Unobservable (in millions) September 30, 2017 Cash equivalents $ 9,368 $ 9,368 $ — $ — Debt securities: U.S. Treasury and other U.S. government U.S. Treasury and agency obligations 814 — 814 — Mortgage-backed securities 1,409 — 1,409 — Tax-exempt municipal securities 3,469 — 3,469 — Mortgage-backed securities: Residential 7 — 7 — Commercial 400 — 400 — Asset-backed securities 140 — 140 — Corporate debt securities 5,099 — 5,098 1 Total debt securities 11,338 — 11,337 1 Total invested assets $ 20,706 $ 9,368 $ 11,337 $ 1 December 31, 2016 Cash equivalents $ 3,654 $ 3,654 $ — $ — Debt securities: U.S. Treasury and other U.S. government U.S. Treasury and agency obligations 786 — 786 — Mortgage-backed securities 1,637 — 1,637 — Tax-exempt municipal securities 3,305 — 3,302 3 Mortgage-backed securities: Residential 9 — 9 — Commercial 304 — 304 — Asset-backed securities 160 — 160 — Corporate debt securities 3,597 — 3,593 4 Total debt securities 9,798 — 9,791 7 Total invested assets $ 13,452 $ 3,654 $ 9,791 $ 7 There were no material transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2017 or 2016 . Our Level 3 assets had a fair value of $1 million at September 30, 2017 , less than 0.01% of our total invested assets. During the three and nine months ended September 30, 2017 and 2016 , the changes in the fair value of the assets measured using significant unobservable inputs (Level 3) were comprised of the following: For the three months ended September 30, 2017 2016 Private Auction Total Private Auction Total (in millions) Beginning balance at July 1 $ 4 $ — $ 4 $ 6 $ 3 $ 9 Sales (3 ) — (3 ) — — — Balance at September 30 $ 1 $ — $ 1 $ 6 $ 3 $ 9 For the nine months ended September 30, 2017 2016 Private Auction Total Private Auction Total (in millions) Beginning balance at January 1 $ 4 $ 3 $ 7 $ 6 $ 5 $ 11 Sales (3 ) — (3 ) — — — Settlements — (3 ) (3 ) — (2 ) (2 ) Balance at September 30 $ 1 $ — $ 1 $ 6 $ 3 $ 9 Financial Liabilities Our debt is recorded at carrying value in our consolidated balance sheets. The carrying value of our senior notes debt outstanding, including the current portion, net of unamortized debt issuance costs, was $4,780 million at September 30, 2017 and $3,792 million at December 31, 2016 . The fair value of our senior notes debt, including the current portion, was $5,185 million at September 30, 2017 and $4,004 million at December 31, 2016 . The fair value of our long-term debt is determined based on Level 2 inputs, including quoted market prices for the same or similar debt, or if no quoted market prices are available, on the current prices estimated to be available to us for debt with similar terms and remaining maturities. Due to the short-term nature, carrying value approximates fair value for our commercial paper borrowings. There were outstanding commercial paper borrowings of $150 million as of September 30, 2017 and $300 million as of December 31, 2016 . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis As disclosed in Note 3, we completed the acquisition of certain health and wellness related businesses during 2017 and 2016 . The values of net tangible assets acquired and the resulting goodwill and other intangible assets were recorded at fair value using Level 3 inputs. The majority of the tangible assets acquired and liabilities assumed were recorded at their carrying values as of the respective dates of acquisition, 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 these acquisitions were internally estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. We developed internal estimates for the expected cash flows and discount rates used in the present value calculations. Other than assets acquired and liabilities assumed in these acquisitions, there were no material assets or liabilities measured at fair value on a nonrecurring basis during 2017 or 2016 . |
MEDICARE PART D
MEDICARE PART D | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
MEDICARE PART D | MEDICARE PART D We cover prescription drug benefits in accordance with Medicare Part D under multiple contracts with the Centers for Medicare and Medicaid Services, or CMS, as described further in Note 2 to the consolidated financial statements included in our 2016 Form 10-K. The accompanying condensed consolidated balance sheets include the following amounts associated with Medicare Part D at September 30, 2017 and December 31, 2016 . CMS subsidies/discounts in the table below include the reinsurance and low-income cost subsidies funded by CMS for which we assume no risk as well as brand name prescription drug discounts for Part D plan participants in the coverage gap funded by CMS and pharmaceutical manufacturers. September 30, 2017 December 31, 2016 Risk CMS Risk CMS (in millions) Other current assets $ 9 $ 1,058 $ 8 $ 1,001 Trade accounts payable and accrued expenses (118 ) (2,134 ) (158 ) (128 ) Net current (liability) asset (109 ) (1,076 ) (150 ) 873 Other long-term assets 3 — — — Other long-term liabilities (180 ) — — — Net long-term liability (177 ) — — — Total net (liability) asset $ (286 ) $ (1,076 ) $ (150 ) $ 873 |
HEALTH CARE REFORM
HEALTH CARE REFORM | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
HEALTH CARE REFORM | HEALTH CARE REFORM The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (which we collectively refer to as the Health Care Reform Law) established risk spreading premium stabilization programs effective January 1, 2014, including a permanent risk adjustment program and temporary risk corridor and reinsurance programs, which we collectively refer to as the 3Rs. The 3Rs are applicable to certain of our commercial medical insurance products as further discussed in Note 2 to our 2016 Form 10-K. Operating results for our Individual Commercial medical business compliant with the Health Care Reform Law have been challenged primarily due to unanticipated modifications in the program subsequent to the passing of the Health Care Reform Law, resulting in higher covered population morbidity and the ensuing enrollment and claims issues causing volatility in claims experience. We took a number of actions in 2015 to improve the profitability of our Individual Commercial medical business in 2016. These actions were subject to regulatory restrictions in certain geographies and included premium increases for the 2016 coverage year related generally to the first half of 2015 claims experience, the discontinuation of certain products as well as exit of certain markets for 2016, network improvements, enhancements to claims and clinical processes and administrative cost control. Despite these actions, the deterioration in the second half of 2015 claims experience together with 2016 open enrollment results indicating the retention of many high-utilizing members for 2016 resulted in a probable future loss. As a result of our then assessment of the profitability of our individual medical policies compliant with the Health Care Reform Law, in the fourth quarter of 2015, we recorded a provision for probable future losses (premium deficiency reserve, or PDR) for the 2016 coverage year of $176 million in benefits payable in our consolidated balance sheet with a corresponding increase in benefits expense in our consolidated statement of income. During the second quarter of 2016 we increased the premium deficiency reserve for the 2016 coverage year and recorded a change in estimate of $208 million with a corresponding increase in benefits expense in our condensed consolidated statement of income for the three months ended June 30, 2016. On November 10, 2016, the U.S. Court of Federal Claims ruled in favor of the government in one of a series of cases filed by insurers, unrelated to us, against the U.S. Department of Health and Human Services, or HHS, to collect risk corridor payments, rejecting all of the insurer’s statutory, contract and Constitutional claims for payment. On November 18, 2016, HHS issued a memorandum indicating a significant funding shortfall for the 2015 coverage year, the second consecutive year of significant shortfalls. Given the successful challenge of the risk corridor provisions in court, Congressional inquiries into the funding of the risk corridor program, and significant funding shortfalls under the first two years of the program, during the fourth quarter of 2016 we wrote-off $583 million in risk corridor receivables outstanding as of September 30, 2016, including $415 million associated with the 2014 and 2015 coverage years. From inception of the risk corridor program through September 30, 2017, we collected approximately $39 million from CMS for risk corridor receivables associated with the 2014 coverage year funded by HHS in accordance with previous guidance, utilizing funds HHS collected from us and other carriers under the risk corridor program. On November 2, 2017, we filed suit against the United States of America in the United States Court of Federal Claims, on behalf of our health plans seeking recovery from the federal government of approximately $611 million in payments under the risk corridor premium stabilization program established under Health Care Reform, for years 2014, 2015 and 2016. On February 14, 2017, we announced we are exiting our Individual Commercial medical business commencing January 1, 2018. As discussed previously, we have worked over the past several years to address market and programmatic challenges in order to keep coverage options available wherever we could offer a viable product. This has included pursuing business changes, such as modifying networks, restructuring product offerings, reducing the company’s geographic footprint and increasing premiums. All of these actions were taken with the expectation that our Individual Commercial medical business would stabilize to the point where we could continue to participate in the program. However, based on our analysis of data associated with our healthcare exchange membership following the 2017 open enrollment period, we saw further signs of an unbalanced risk pool. Therefore, we decided that we cannot continue to offer this coverage and will exit this business commencing January 1, 2018. The accompanying condensed consolidated balance sheets include the following amounts associated with the 3Rs at September 30, 2017 and December 31, 2016 . September 30, 2017 December 31, 2016 Risk Adjustment Reinsurance Risk Adjustment Reinsurance (in millions) Prior Coverage Years Premiums receivable $ 127 $ — $ 307 $ — Other current assets — 44 — 260 Trade accounts payable and — — (117 ) — Net current asset 127 44 190 260 Other long-term assets — — 6 — Total prior coverage years' net 127 44 196 260 Current Coverage Year Premiums receivable 30 — — — Trade accounts payable and (57 ) — — — Net current liability (27 ) — — — Other long-term assets 29 — — — Other long-term liabilities — — — — Net long-term asset 29 — — — Total 2017 coverage year net 2 — — — Total net asset $ 129 $ 44 $ 196 $ 260 During the nine months ended September 30, 2017 , we received $283 million for reinsurance recoverables and $176 million for risk adjustment and risk corridor settlements, and paid $152 million in risk adjustment charges, in each case associated with prior coverage years. During the nine months ended September 30, 2016 , we received $471 million for reinsurance recoverables as well as $88 million for risk adjustment and risk corridor settlements, and paid $240 million in risk adjustment charges, in each case associated with prior coverage years. To the extent certain provisions of the Health Care Reform Law are successfully challenged in court or there are changes in legislation or the application of legislation, there can be no guarantee that receivables established under the reinsurance or risk adjustment provisions of the Health Care Reform Law will ultimately be collected. Potential legislative changes, including activities to repeal or replace the Health Care Reform Law, creates uncertainty for our business, and we cannot predict when, or in what form, such legislative changes may occur. The annual health insurance industry fee has been suspended for calendar year 2017, but is scheduled to resume in calendar year 2018. In September 2016, we paid the federal government $916 million f or our portion of the annual health insurance industry fee attributed to calendar year 2016 in accordance with the Health Care Reform Law. This fee, fixed in amount by law and apportioned to insurance carriers based on market share, is not deductible for tax purposes. Each year on January 1, except for 2017, we record a liability for this fee in trade accounts payable and accrued expenses which we carry until the fee is paid. We record a corresponding deferred cost in other current assets in our condensed consolidated financial statements which is amortized ratably to expense over the calendar year. Amortization of the deferred cost was recorded in operating cost expense of approximately $231 million and $687 million for the three and nine months ended September 30, 2016 , respectively, resulting from the amortization of the 2016 annual health insurance industry fee. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The carrying amount of goodwill for our reportable segments has been retrospectively adjusted to conform to the 2017 business segment reclassifications as discussed in Note 1. There was no impairment. Changes in the carrying amount of goodwill for our reportable segments for the nine months ended September 30, 2017 were as follows: Retail Group and Specialty Healthcare Total (in millions) Balance at January 1, 2017 $ 1,059 $ 261 $ 1,952 $ 3,272 Acquisitions — — 9 9 Balance at September 30, 2017 $ 1,059 $ 261 $ 1,961 $ 3,281 The following table presents details of our other intangible assets included in other long-term assets in the accompanying condensed consolidated balance sheets at September 30, 2017 and December 31, 2016 . September 30, 2017 December 31, 2016 Weighted Cost Accumulated Net Cost Accumulated Net ($ in millions) Other intangible assets: Customer contracts/ 9.8 years $ 566 $ 388 $ 178 $ 566 $ 347 $ 219 Trade names and 8.2 years 104 77 27 104 69 35 Provider contracts 14.1 years 51 33 18 51 29 22 Noncompetes and 8.1 years 33 29 4 32 28 4 Total other intangible 9.8 years $ 754 $ 527 $ 227 $ 753 $ 473 $ 280 Amortization expense for other intangible assets was approximately $18 million for the three months ended September 30, 2017 and 2016. For the nine months ended September 30, 2017 and 2016 , amortization expense for other intangible assets was approximately $54 million and $59 million , respectively. The following table presents our estimate of amortization expense for 2017 and each of the five next succeeding years: (in millions) For the years ending December 31, 2017 $ 71 2018 63 2019 52 2020 48 2021 14 2022 11 |
BENEFITS PAYABLE
BENEFITS PAYABLE | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
BENEFITS PAYABLE | BENEFITS PAYABLE On a consolidated basis, activity in benefits payable, excluding military services, was as follows for the nine months ended September 30, 2017 and 2016 : For the nine months ended September 30, 2017 2016 (in millions) Balances, beginning of period $ 4,563 $ 4,976 Less: Premium deficiency reserve — (176 ) Less: Reinsurance recoverables (76 ) (85 ) Balances, beginning of period, net 4,487 4,715 Incurred related to: Current year 33,318 34,340 Prior years (430 ) (525 ) Total incurred 32,888 33,815 Paid related to: Current year (28,741 ) (29,768 ) Prior years (3,745 ) (3,996 ) Total paid (32,486 ) (33,764 ) Premium deficiency reserve — 206 Reinsurance recoverable 70 77 Balances, end of period $ 4,959 $ 5,049 Amounts incurred related to prior periods vary from previously estimated liabilities as the claims ultimately are settled. Negative amounts reported for incurred related to prior years result from claims being ultimately settled for amounts less than originally estimated (favorable development). Our reserving practice is to consistently recognize the actuarial best estimate of our ultimate liability for claims. Actuarial standards require the use of assumptions based on moderately adverse experience, which generally results in favorable reserve development, or reserves that are considered redundant. Benefits expense excluded from the previous table was as follows for the nine months ended September 30, 2017 and 2016 . For the nine months ended September 30, 2017 2016 (in millions) Premium deficiency reserve - Individual Commercial $ — $ 30 Military services — 7 Future policy benefits: Individual Commercial (67 ) (82 ) Other Businesses 36 36 Total future policy benefits (31 ) (46 ) Total $ (31 ) $ (9 ) Military services benefits expense in the tables above reflect expenses associated with our contracts with the Veterans Administration. Incurred and Paid Claims Development The following discussion provides information about incurred and paid claims development for our Retail, Group and Specialty, and Individual Commercial segments as of September 30, 2017 and 2016 , net of reinsurance and the total of IBNR included within the net incurred claims amounts. Retail Segment Activity in benefits payable for our Retail segment was as follows for the nine months ended September 30, 2017 and 2016 : For the nine months ended September 30, 2017 2016 (in millions) Balances, beginning of period $ 3,507 $ 3,600 Less: Reinsurance recoverables (76 ) (85 ) Balances, beginning of period, net 3,431 3,515 Incurred related to: Current year 29,356 28,369 Prior years (339 ) (378 ) Total incurred 29,017 27,991 Paid related to: Current year (25,460 ) (24,822 ) Prior years (2,822 ) (2,990 ) Total paid (28,282 ) (27,812 ) Reinsurance recoverable 70 77 Balances, end of period $ 4,236 $ 3,771 At September 30, 2017 , benefits payable for our Retail segment included IBNR of approximately $2.7 billion , primarily associated with claims incurred in 2017. Group and Specialty Segment Activity in benefits payable for our Group and Specialty segment, excluding military services, was as follows for the nine months ended September 30, 2017 and 2016 : For the nine months ended September 30, 2017 2016 (in millions) Balances, beginning of period $ 578 $ 616 Incurred related to: Current year 3,996 3,918 Prior years (44 ) (42 ) Total incurred 3,952 3,876 Paid related to: Current year (3,452 ) (3,337 ) Prior years (517 ) (557 ) Total paid (3,969 ) (3,894 ) Balances, end of period $ 561 $ 598 At September 30, 2017 , benefits payable for our Group and Specialty segment included IBNR of approximately $490 million , primarily associated with claims incurred in 2017. Individual Commercial Segment Activity in benefits payable for our Individual Commercial segment was as follows for the nine months ended September 30, 2017 and 2016 : For the nine months ended September 30, 2017 2016 (in millions) Balances, beginning of period $ 454 $ 740 Less: Premium deficiency reserve — (176 ) Balances, beginning of period, net 454 564 Incurred related to: Current year 502 2,694 Prior years (46 ) (104 ) Total incurred 456 2,590 Paid related to: Current year (393 ) (2,273 ) Prior years (383 ) (430 ) Total paid (776 ) (2,703 ) Premium deficiency reserve — 206 Balance, end of period $ 134 $ 657 At September 30, 2017 , benefits payable for our Individual Commercial segment included IBNR of approximately $120 million , primarily associated with claims incurred in 2017. Reconciliation to Consolidated The reconciliation of the net incurred and paid claims development tables to benefits payable in the consolidated statement of financial position is as follows: Reconciliation of the Disclosure of Incurred and Paid Claims Development to Benefits Payable, net of reinsurance September 30, 2017 Net outstanding liabilities Retail $ 4,166 Group and Specialty 561 Individual Commercial 134 Other Businesses 28 Benefits payable, net of reinsurance 4,889 Reinsurance recoverable on unpaid claims Retail 70 Total reinsurance recoverable on unpaid claims 70 Total benefits payable, gross $ 4,959 |
EARNINGS PER COMMON SHARE COMPU
EARNINGS PER COMMON SHARE COMPUTATION | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE COMPUTATION | EARNINGS PER COMMON SHARE COMPUTATION Detail supporting the computation of basic and diluted earnings per common share was as follows for the three and nine months ended September 30, 2017 and 2016 : Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 (dollars in millions, except per common share results; number of shares in thousands) Net income available for common stockholders $ 499 $ 450 $ 2,264 $ 1,015 Weighted average outstanding shares of common stock 144,215 149,417 145,546 149,321 Dilutive effect of: Employee stock options 165 210 174 216 Restricted stock 980 1,277 902 1,332 Shares used to compute diluted earnings per common share 145,360 150,904 146,622 150,869 Basic earnings per common share $ 3.46 $ 3.01 $ 15.56 $ 6.80 Diluted earnings per common share $ 3.44 $ 2.98 $ 15.44 $ 6.73 Number of antidilutive stock options and restricted stock 399 658 595 873 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Dividends The following table provides details of dividend payments, excluding dividend equivalent rights for unvested stock awards, in 2016 and 2017 under our Board approved quarterly cash dividend policy: Record Payment Amount Total (in millions) 2016 payments 12/30/2015 1/29/2016 $ 0.29 $ 43 3/31/2016 4/29/2016 $ 0.29 $ 43 6/30/2016 7/29/2016 $ 0.29 $ 43 10/13/2016 10/28/2016 $ 0.29 $ 43 2017 payments 1/12/2017 1/27/2017 $ 0.29 $ 43 3/31/2017 4/28/2017 $ 0.40 $ 58 6/30/2017 7/31/2017 $ 0.40 $ 58 9/29/2017 10/27/2017 $ 0.40 $ 57 On November 2, 2017 , the Board declared a cash dividend of $0.40 per share payable on January 26, 2018 , to stockholders of record on December 29, 2017 . Stock Repurchases On February 14, 2017, our Board of Directors replaced a previous share repurchase authorization of up to $2 billion , of which $1.04 billion remained unused, with a new authorization for repurchases of up to $2.25 billion of our common shares expiring on December 31, 2017 , exclusive of shares repurchased in connection with employee stock plans. Under the share repurchase authorization, shares may be purchased from time to time at prevailing prices in the open market, by block purchases, through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or in privately-negotiated transactions, including pursuant to accelerated share repurchase agreements with investment banks, subject to certain regulatory restrictions on volume, pricing, and timing. On February 16, 2017 , we entered into an accelerated share repurchase agreement, or ASR Agreement, with Goldman, Sachs & Co. LLC, or Goldman Sachs, to repurchase $1.5 billion of our common stock as part of the $2.25 billion share repurchase program referred to above. Under the ASR Agreement, on February 22, 2017 , we made a payment of $1.5 billion to Goldman Sachs from available cash on hand and received an initial delivery of 5.83 million shares of our common stock from Goldman Sachs based on the then current market price of Humana common stock. The payment to Goldman Sachs was recorded as a reduction to stockholders’ equity, consisting of a $1.2 billion increase in treasury stock, which reflected the value of the initial 5.83 million shares received upon initial settlement, and a $300 million decrease in capital in excess of par value, which reflected the value of stock held back by Goldman Sachs pending final settlement of the ASR Agreement. Upon settlement of the ASR on August 28, 2017, we received an additional 0.84 million shares as determined by the average daily volume weighted-average share price of our common stock during the term of the ASR Agreement of $224.81 , bringing the total shares received under this program to 6.67 million . In addition, upon settlement we reclassified the $300 million value of stock initially held back by Goldman Sachs from capital in excess of par value to treasury stock. Our remaining repurchase authorization was approximately $239 million as of November 3, 2017. In connection with employee stock plans, we acquired 0.37 million common shares for $79 million and 0.45 million common shares for $75 million during the nine months ended September 30, 2017 and 2016 , respectively. Treasury Stock Reissuance We reissued 1.40 million shares of treasury stock during the nine months ended September 30, 2017 at a cost of $99 million associated with restricted stock unit vestings and option exercises. Accumulated Other Comprehensive Income Accumulated other comprehensive income included net unrealized gains, net of tax, on our investment securities of $107 million at September 30, 2017 and net unrealized losses, net of tax, of $17 million at December 31, 2016 . In addition, accumulated other comprehensive income included $95 million , net of tax, at September 30, 2017 and $49 million , net of tax, at December 31, 2016 for an additional liability that would exist on our closed block of long-term care insurance policies if unrealized gains on the sale of the investments backing such products had been realized and the proceeds reinvested at then current yields. Refer to Note 18 to the consolidated financial statements in our 2016 Form 10-K for further discussion of our long-term care insurance policies. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rate was 37.5% for the three months ended September 30, 2017 , compared to 50.1% for the three months ended September 30, 2016 and was 35.9% for the nine months ended September 30, 2017 , compared to 50.2% for the nine months ended September 30, 2016 , primarily due to the 2017 temporary suspension of the non-deductible health insurance industry fee as well as previously non-deductible transaction costs that, as a result of termination of the Merger Agreement, became deductible for tax purposes and were recorded as such in the three months ended March 31, 2017. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The carrying value of debt outstanding, net of unamortized debt issuance costs, was as follows at September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 (in millions) Short-term: Commercial paper $ 150 $ 300 $500 million, 7.20% Senior notes due June 15, 2018 501 — $300 million, 6.30% Senior notes due August 1, 2018 302 — Total short-term debt 953 300 Long-term: Senior notes: $500 million, 7.20% due June 15, 2018 — 501 $300 million, 6.30% due August 1, 2018 — 304 $400 million, 2.625% due October 1, 2019 399 398 $600 million, 3.15% due December 1, 2022 596 595 $600 million, 3.85% due October 1, 2024 595 595 $600 million, 3.95% due March 15, 2027 594 — $250 million, 8.15% due June 15, 2038 263 264 $400 million, 4.625% due December 1, 2042 396 396 $750 million, 4.95% due October 1, 2044 739 739 $400 million, 4.80% due March 15, 2047 395 — Total long-term debt 3,977 3,792 Total debt $ 4,930 $ 4,092 Senior Notes In March 2017, we issued $600 million of 3.95% senior notes due March 15, 2027 and $400 million of 4.80% senior notes due March 15, 2047. Our net proceeds, reduced for the underwriters' discount and commission and offering expenses paid as of March 31, 2017, were $991 million . We intend to use the net proceeds from these issuances for general corporate purposes. Our senior notes, which are unsecured, may be redeemed at our option at any time at 100% of the principal amount plus accrued interest and a specified make-whole amount. The 7.20% and 8.15% senior notes are subject to an interest rate adjustment if the debt ratings assigned to the notes are downgraded (or subsequently upgraded). In addition, each series of our senior notes (other than the 6.30% senior notes) contain a change of control provision that may require us to purchase the notes under certain circumstances. Prior to 2009, we were parties to interest-rate swap agreements that exchanged the fixed interest rate under our senior notes for a variable interest rate based on LIBOR. As a result, the carrying value of the senior notes was adjusted to reflect changes in value caused by an increase or decrease in interest rates. During 2008, we terminated all of our swap agreements. The cumulative adjustment to the carrying value of our senior notes was $103 million as of the termination date which is being amortized as a reduction to interest expense over the remaining term of the senior notes. The unamortized carrying value adjustment was $19 million as of September 30, 2017 and $23 million as of December 31, 2016 . Credit Agreement In May 2017 we amended and restated our previous 5 -year $1.0 billion unsecured revolving credit agreement expiring July 2018 with a 5 -year $2.0 billion unsecured revolving credit agreement which expires May 2022. Under the credit agreement, at our option, we can borrow on either a competitive advance basis or a revolving credit basis. The revolving credit portion bears interest at either LIBOR plus a spread or the base rate plus a spread. The LIBOR spread, currently 110.0 basis points, varies depending on our credit ratings ranging from 91.0 to 150.0 basis points. We also pay an annual facility fee regardless of utilization. This facility fee, currently 15.0 basis points, may fluctuate between 9.0 and 25.0 basis points, depending upon our credit ratings. The competitive advance portion of any borrowings will bear interest at market rates prevailing at the time of borrowing on either a fixed rate or a floating rate based on LIBOR, at our option. The terms of the credit agreement include standard provisions related to conditions of borrowing, including a customary material adverse effect clause which could limit our ability to borrow additional funds. In addition, the credit agreement contains customary restrictive and financial covenants as well as customary events of default, including financial covenants regarding the maintenance of a minimum level of net worth of $9.1 billion at September 30, 2017 and a maximum leverage ratio of 3.0 :1 . We are in compliance with the financial covenants, with actual net worth of $11.2 billion and an actual leverage ratio of 1.1 :1 as measured in accordance with the credit agreement as of September 30, 2017 . Upon our agreement with one or more financial institutions, we may expand the aggregate commitments under the credit agreement to a maximum of $2.5 billion , through a $500.0 million incremental loan facility. At September 30, 2017 , we had no borrowings and no letters of credit outstanding under the credit agreement . Accordingly, as of September 30, 2017 , we had $2.0 billion of remaining borrowing capacity (which excludes the uncommitted $500 million incremental loan facility under the credit agreement), none of which would be restricted by our financial covenant compliance requirement. We have other customary, arms-length relationships, including financial advisory and banking, with some parties to the credit agreement. Commercial Paper We previously entered into a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes privately placed on a discount basis through certain broker dealers. On June 15, 2017, we increased the size of the commercial paper program to permit the issuance of the commercial notes with the aggregate face or principal amount outstanding under the program at any time not to exceed $2 billion . Amounts available under the program may be borrowed, repaid and re-borrowed from time to time . The net proceeds of issuances have been and are expected to be used for general corporate purposes. The maximum principal amount outstanding at any one time during the nine months ended September 30, 2017 was $500 million . There were outstanding borrowings of $150 million at September 30, 2017 and $300 million at December 31, 2016 . |
GUARANTEES AND CONTINGENCIES
GUARANTEES AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
GUARANTEES AND CONTINGENCIES | GUARANTEES AND CONTINGENCIES Government Contracts Our Medicare products, which accounted for approximately 78% of our total premiums and services revenue for the nine months ended September 30, 2017 , primarily consisted of products covered under the Medicare Advantage and Medicare Part D Prescription Drug Plan contracts with the federal government. These contracts are renewed generally for a calendar year term unless CMS notifies us of its decision not to renew by May 1 of the calendar year in which the contract would end, or we notify CMS of our decision not to renew by the first Monday in June of the calendar year in which the contract would end. All material contracts between Humana and CMS relating to our Medicare products have been renewed for 2018, and all of our product offerings filed with CMS for 2018 have been approved. CMS uses a risk-adjustment model which adjusts premiums paid to Medicare Advantage, or MA, plans according to health status of covered members. The risk-adjustment model, which CMS implemented pursuant to the Balanced Budget Act of 1997 (BBA) and the Benefits Improvement and Protection Act of 2000 (BIPA), generally pays more where a plan's membership has higher expected costs. Under this model, rates paid to MA plans are based on actuarially determined bids, which include a process whereby our prospective payments are based on our estimated cost of providing standard Medicare-covered benefits to an enrollee with a "national average risk profile." That baseline payment amount is adjusted to reflect the health status of our enrolled membership. Under the risk-adjustment methodology, all MA plans must collect and submit the necessary diagnosis code information from hospital inpatient, hospital outpatient, and physician providers to CMS within prescribed deadlines. The CMS risk-adjustment model uses the diagnosis data to calculate the risk-adjusted premium payment to MA plans, which CMS adjusts for coding pattern differences between the health plans and the government fee-for-service program. We generally rely on providers, including certain providers in our network who are our employees, to code their claim submissions with appropriate diagnoses, which we send to CMS as the basis for our payment received from CMS under the actuarial risk-adjustment model. We also rely on these providers to document appropriately all medical data, including the diagnosis data submitted with claims. In addition, we conduct medical record reviews as part of our data and payment accuracy compliance efforts, to more accurately reflect diagnosis conditions under the risk adjustment model. These compliance efforts include the internal contract level audits described in more detail below. CMS is phasing-in the process of calculating risk scores using diagnoses data from the Risk Adjustment Processing System, or RAPS, to diagnoses data from the Encounter Data System, or EDS. The RAPS process requires MA plans to apply a filter logic based on CMS guidelines and only submit claims that satisfy those guidelines. For submissions through EDS, CMS requires MA plans to submit all the encounter data and CMS will apply the risk adjustment filtering logic to determine the risk scores. For 2016, 10% of the risk score was calculated from claims data submitted through EDS, increasing to 25% of the risk score calculated from claims data through EDS for 2017. In April 2017, CMS revised the pace of the phase-in. For 2018, 15% of the risk score will be calculated from claims data submitted through EDS. The phase-in from RAPS to EDS could result in different risk scores from each dataset as a result of plan processing issues, CMS processing issues, or filtering logic differences between RAPS and EDS, and could have a material adverse effect on our results of operations, financial position, or cash flows. CMS is continuing to perform audits of various companies’ selected MA contracts related to this risk adjustment diagnosis data. We refer to these audits as Risk-Adjustment Data Validation Audits, or RADV audits. RADV audits review medical records in an attempt to validate provider medical record documentation and coding practices which influence the calculation of premium payments to MA plans. In 2012, CMS released a “Notice of Final Payment Error Calculation Methodology for Part C Medicare Advantage Risk Adjustment Data Validation (RADV) Contract-Level Audits.” The payment error calculation methodology provides that, in calculating the economic impact of audit results for an MA contract, if any, the results of the RADV audit sample will be extrapolated to the entire MA contract after a comparison of the audit results to a similar audit of Medicare FFS (we refer to the process of accounting for errors in FFS claims as the "FFS Adjuster"). This comparison of RADV audit results to the FFS error rate is necessary to determine the economic impact, if any, of RADV audit results because the government used the Medicare FFS program data set, including any attendant errors that are present in that data set, to estimate the costs of various health status conditions and to set the resulting adjustments to MA plans’ payment rates. CMS already makes other adjustments to payment rates based on a comparison of coding pattern differences between MA plans and Medicare FFS data (such as for frequency of coding for certain diagnoses in MA plan data versus the Medicare FFS program dataset). The final RADV extrapolation methodology, including the first application of extrapolated audit results to determine audit settlements, is expected to be applied to RADV contract level audits conducted for contract year 2011 and subsequent years. CMS is currently conducting RADV contract level audits for contract years 2011, 2012, and 2013 in which two, five and five of our Medicare Advantage plans are being audited, respectively. Per CMS guidance, selected MA contracts will be notified of an audit at some point after the close of the final reconciliation for the payment year being audited. Estimated audit settlements are recorded as a reduction of premiums revenue in our consolidated statements of income, based upon available information. We perform internal contract level audits based on the RADV audit methodology prescribed by CMS. Included in these internal contract level audits is an audit of our Private Fee-For- Service business which we used to represent a proxy of the FFS Adjuster which has not yet been released. We based our accrual of estimated audit settlements for each contract year on the results of these internal contract level audits and update our estimates as each audit is completed. Estimates derived from these results were not material to our results of operations, financial position, or cash flows. We report the results of these internal contract level audits to CMS, including identified overpayments, if any. However, as indicated, we are awaiting additional guidance from CMS regarding the FFS Adjuster. Accordingly, we cannot determine whether such RADV audits will have a material adverse effect on our results of operations, financial position, or cash flows. In addition, CMS' comments in formalized guidance regarding “overpayments” to MA plans appear to be inconsistent with CMS' prior RADV audit guidance. These statements, contained in the preamble to CMS’ final rule release regarding Medicare Advantage and Part D prescription drug benefit program regulations for Contract Year 2015, appear to equate each Medicare Advantage risk adjustment data error with an “overpayment” without reconciliation to the principles underlying the FFS Adjuster referenced above. We will continue to work with CMS to ensure that MA plans are paid accurately and that payment model principles are in accordance with the requirements of the Social Security Act, which, if not implemented correctly could have a material adverse effect on our results of operations, financial position, or cash flows. At September 30, 2017 , our military services business, which accounted for approximately 0.7% of our total premiums and services revenue for the nine months ended September 30, 2017 , primarily consisted of the TRICARE South Region contract. The current 5 -year South Region contract, which was set to expire on March 31, 2017 , is subject to annual renewals on April 1 of each year during its term at the government’s option, including an option to extend for a sixth year through March 31, 2018. On March 2, 2017, we received notice that the Defense Health Agency, or DHA, had exercised its option to extend the TRICARE South Region contract for that sixth year. On July 21, 2016, we were notified by the DHA that we were awarded the contract for the new TRICARE East Region, which is a consolidation of the former North and South Regions, with delivery of health care services expected to commence on October 1, 2017. On March 30, 2017, we received notice that the DHA is moving the date upon which delivery of health care services is expected to commence under the new TRICARE East Region contract from October 1, 2017 to January 1, 2018. We expect the sixth option period under the current TRICARE South Region contract would be terminated in the event that delivery of health care services under the new TRICARE East Region contract commences prior to March 31, 2018. Our state-based Medicaid business accounted for approximately 5% of our total premiums and services revenue for the nine months ended September 30, 2017 . In addition to our state-based Temporary Assistance for Needy Families, or TANF, Medicaid contracts in Florida and Kentucky, we have contracts in Florida for Long Term Support Services (LTSS), in Illinois and Virginia for stand-alone dual eligible demonstration programs serving individuals dually eligible for both the federal Medicare program and the applicable state-based Medicaid program, as well as an Integrated Care Program, or ICP, Medicaid contract in Illinois. Our Integrated Care Program Medicaid contract in Illinois, and the Virginia stand-alone dual eligible demonstration program both will terminate at December 31, 2017. The loss of any of the contracts above or significant changes in these programs as a result of legislative or regulatory action, including reductions in premium payments to us, regulatory restrictions on profitability, including by comparison of our Medicare Advantage profitability to our non-Medicare Advantage business profitability and a requirement that they remain within certain ranges of each other, or increases in member benefits without corresponding increases in premium payments to us, may have a material adverse effect on our results of operations, financial position, and cash flows. Legal Proceedings and Certain Regulatory Matters On January 6, 2012, the Civil Division of the United States Attorney’s Office for the Southern District of Florida advised us that it is seeking documents and information from us and several of our affiliates relating to several matters including the coding of medical claims by one or more South Florida medical providers, and loans to physician practices. On May 1, 2014, the U.S. Attorney's Office filed a Notice of Non-Intervention in connection with a civil qui tam suit related to one of these matters captioned United States of America ex rel. Olivia Graves v. Plaza Medical Centers, et al. , and the Court ordered the complaint unsealed. Subsequently, the individual plaintiff amended the complaint and served the Company, opting to continue to pursue the action. As of November 7, 2017, all parties to the lawsuit and the United States have executed a settlement agreement to settle the plaintiff’s claims for damages and penalties, with Humana paying an amount that is not material to our results of operations. The parties are awaiting the court’s dismissal of the case. As previously disclosed, the Civil Division of the United States Department of Justice had provided us with an information request, separate from but related to the Plaza Medical matter, concerning our Medicare Part C risk adjustment practices. The request relates to our oversight and submission of risk adjustment data generated by providers in our Medicare Advantage network, including the providers identified in the Plaza Medical matter, as well as to our business and compliance practices related to risk adjustment data generated by our providers and by us, including medical record reviews conducted as part of our data and payment accuracy compliance efforts, the use of health and well-being assessments, and our fraud detection efforts. We believe that this request for information is in connection with a wider review of Medicare Risk Adjustment generally that includes a number of Medicare Advantage plans, providers and vendors. We continue to cooperate with and voluntarily respond to the information requests from the Department of Justice and the U.S. Attorney’s Office. These matters are expected to result in additional qui tam litigation. On January 19, 2016, an individual filed a qui tam suit captioned United States of America ex rel. Steven Scott v. Humana, Inc. , in United States District Court, Central District of California, Western Division. The complaint alleges certain civil violations by us in connection with the actuarial equivalence of the plan benefits under Humana’s Basic PDP plan, a prescription drug plan offered by us under Medicare Part D, as compared to required benefit levels under applicable bid rules. The action seeks damages and penalties on behalf of the United States under the False Claims Act. The court ordered the qui tam action unsealed on September 13, 2017, so that the relator can proceed, following notice from the U.S. Government that it is not intervening at this time. We take seriously our obligations to comply with applicable CMS requirements and actuarial best principles, and we intend to vigorously defend against these allegations. On November 2, 2017, we filed suit against the United States of America in the United States Court of Federal Claims, on behalf of our health plans seeking recovery from the federal government of approximately $611 million in payments under the risk corridor premium stabilization program established under Health Care Reform, for years 2014, 2015 and 2016. We have not recognized revenue, nor have we recorded a receivable, for any amount due from the federal government for unpaid risk corridor payments as of September 30, 2017. We have fully recognized all liabilities due to the federal government that we have incurred under the risk corridor program, and have paid all amounts due to the federal government as required. There is no assurance that we will prevail in the lawsuit. Other Lawsuits and Regulatory Matters Our current and past business practices are subject to review or other investigations by various state insurance and health care regulatory authorities and other state and federal regulatory authorities. These authorities regularly scrutinize the business practices of health insurance, health care delivery and benefits companies. These reviews focus on numerous facets of our business, including claims payment practices, statutory capital requirements, provider contracting, risk adjustment, competitive practices, commission payments, privacy issues, utilization management practices, pharmacy benefits, access to care, and sales practices, among others. Some of these reviews have historically resulted in fines imposed on us and some have required changes to some of our practices. We continue to be subject to these reviews, which could result in additional fines or other sanctions being imposed on us or additional changes in some of our practices. We also are involved in various other lawsuits that arise, for the most part, in the ordinary course of our business operations, certain of which may be styled as class-action lawsuits. Among other matters, this litigation may include employment matters, claims of medical malpractice, bad faith, nonacceptance or termination of providers, anticompetitive practices, improper rate setting, provider contract rate and payment disputes, general contractual matters, intellectual property matters, and challenges to subrogation practices. For example, a number of hospitals and other providers have asserted that, under their network provider contracts, we are not entitled to reduce Medicare Advantage payments to these providers in connection with changes in Medicare payment systems and in accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended (commonly referred to as “sequestration”). Those challenges have led and could lead to arbitration demands or other litigation. Also, under state guaranty assessment laws, including those related to state cooperative failures in the industry, we may be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of insolvent insurance companies that write the same line or lines of business as we do. Penn Treaty is a financially distressed unaffiliated long-term care insurance company. On March 1, 2017, a court ordered the liquidation of Penn Treaty which triggered assessments from state guaranty associations that resulted in our recording a $54 million estimate in operating costs in the three months ended March 31, 2017. As a government contractor, we may also be subject to qui tam litigation brought by individuals who seek to sue on behalf of the government, alleging that the government contractor submitted false claims to the government including, among other allegations, those resulting from coding and review practices under the Medicare risk adjustment model. Qui tam litigation is filed under seal to allow the government an opportunity to investigate and to decide if it wishes to intervene and assume control of the litigation. If the government does not intervene, the lawsuit is unsealed, and the individual may continue to prosecute the action on his or her own, on behalf of the government. We also are subject to other allegations of non-performance of contractual obligations to providers, members, and others, including failure to properly pay claims, improper policy terminations, challenges to our implementation of the Medicare Part D prescription drug program and other litigation. A limited number of the claims asserted against us are subject to insurance coverage. Personal injury claims, claims for extra contractual damages, care delivery malpractice, and claims arising from medical benefit denials are covered by insurance from our wholly owned captive insurance subsidiary and excess carriers, except to the extent that claimants seek punitive damages, which may not be covered by insurance in certain states in which insurance coverage for punitive damages is not permitted. In addition, insurance coverage for all or certain forms of liability has become increasingly costly and may become unavailable or prohibitively expensive in the future. We record accruals for the contingencies discussed in the sections above to the extent that we conclude it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. No estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made at this time regarding the matters specifically described above because of the inherently unpredictable nature of legal proceedings, which also may be exacerbated by various factors, including: (i) the damages sought in the proceedings are unsubstantiated or indeterminate; (ii) discovery is not complete; (iii) the proceeding is in its early stages; (iv) the matters present legal uncertainties; (v) there are significant facts in dispute; (vi) there are a large number of parties (including where it is uncertain how liability, if any, will be shared among multiple defendants); or (vii) there is a wide range of potential outcomes. The outcome of any current or future litigation or governmental or internal investigations, including the matters described above, cannot be accurately predicted, nor can we predict any resulting judgments, penalties, fines or other sanctions that may be imposed at the discretion of federal or state regulatory authorities or as a result of actions by third parties. Nevertheless, it is reasonably possible that any such outcome of litigation, judgments, penalties, fines or other sanctions could be substantial, and the outcome of these matters may have a material adverse effect on our results of operations, financial position, and cash flows, and may also affect our reputation. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION During the three months ended March 31, 2017, we realigned certain of our businesses among our reportable segments to correspond with internal management reporting changes and our previously announced planned exit from the Individual Commercial medical business on January 1, 2018. Additionally, we renamed our Group segment to the Group and Specialty segment, and began presenting the Individual Commercial business results as a separate segment rather than as part of the Retail segment. Specialty health insurance benefits, including dental, vision, other supplement health, and financial protection products, marketed to individuals are now included in the Group and Specialty segment. Specialty health insurance benefits marketed to employer groups continue to be included in the Group and Specialty segment. As a result of this realignment, our reportable segments now include Retail, Group and Specialty, Healthcare Services, and Individual Commercial. Prior period segment financial information has been recast to conform to the 2017 presentation. We manage our business with four reportable segments: Retail, Group and Specialty, Healthcare Services and Individual Commercial. In addition, the Other Businesses category includes businesses that are not individually reportable because they do not meet the quantitative thresholds required by generally accepted accounting principles. These segments are based on a combination of the type of health plan customer and adjacent businesses centered on well-being solutions for our health plans and other customers, as described below. These segment groupings are consistent with information used by our Chief Executive Officer to assess performance and allocate resources. The Retail segment consists of Medicare benefits, marketed to individuals or directly via group accounts. In addition, the Retail segment also includes our contract with CMS to administer the Limited Income Newly Eligible Transition, or LI-NET, prescription drug plan program and contracts with various states to provide Medicaid, dual eligible, and Long-Term Support Services benefits, which we refer to collectively as our state-based contracts. The Group and Specialty segment consists of employer group commercial fully-insured medical and specialty health insurance benefits marketed to individuals and employer groups, including dental, vision, and other supplemental health and voluntary insurance benefits and financial protection products, as well as administrative services only, or ASO products. In addition, our Group and Specialty segment includes military services business, primarily our TRICARE South Region contract. The Healthcare Services segment includes services offered to our health plan members as well as to third parties, including pharmacy solutions, provider services, and clinical care service, as well as services and capabilities to promote wellness and advance population health. The Individual Commercial segment consists of our individual commercial fully-insured medical health insurance benefits. We report under the category of Other Businesses those businesses that do not align with the reportable segments described above, primarily our closed-block long-term care insurance policies. Our Healthcare Services intersegment revenues primarily relate to managing prescription drug coverage for members of our other segments through Humana Pharmacy Solutions ® , or HPS, and includes the operations of Humana Pharmacy, Inc., our mail order pharmacy business. These revenues consist of the prescription price (ingredient cost plus dispensing fee), including the portion to be settled with the member (co-share) or with the government (subsidies), plus any associated administrative fees. Services revenues related to the distribution of prescriptions by third party retail pharmacies in our networks are recognized when the claim is processed and product revenues from dispensing prescriptions from our mail order pharmacies are recorded when the prescription or product is shipped. Our pharmacy operations, which are responsible for designing pharmacy benefits, including defining member co-share responsibilities, determining formulary listings, contracting with retail pharmacies, confirming member eligibility, reviewing drug utilization, and processing claims, act as a principal in the arrangement on behalf of members in our other segments. As principal, our Healthcare Services segment reports revenues on a gross basis, including co-share amounts from members collected by third party retail pharmacies at the point of service. In addition, our Healthcare Services intersegment revenues include revenues earned by certain owned providers derived from risk-based and non-risk-based managed care agreements with our health plans. Under risk based agreements, the provider receives a monthly capitated fee that varies depending on the demographics and health status of the member, for each member assigned to these owned providers by our health plans. The owned provider assumes the economic risk of funding the assigned members’ healthcare services. Under non risk-based agreements, our health plans retain the economic risk of funding the assigned members' healthcare services. Our Healthcare Services segment reports provider services revenues associated with risk-based agreements on a gross basis, whereby capitation fee revenue is recognized in the period in which the assigned members are entitled to receive healthcare services. Provider services revenues associated with non-risk-based agreements are presented net of associated healthcare costs. We present our consolidated results of operations from the perspective of the health plans. As a result, the cost of providing benefits to our members, whether provided via a third party provider or internally through a stand-alone subsidiary, is classified as benefits expense and excludes the portion of the cost for which the health plans do not bear responsibility, including member co-share amounts and government subsidies of $3.6 billion for the three months ended September 30, 2017 and 2016 . For the nine months ended September 30, 2017 and 2016 these amounts were $9.8 billion and $9.7 billion , respectively. In addition, depreciation and amortization expense associated with certain businesses in our Healthcare Services segment delivering benefits to our members, primarily associated with our provider services and pharmacy operations, are included with benefits expense. The amount of this expense was $26 million and $31 million for the three months ended September 30, 2017 and 2016 , respectively. For the nine months ended September 30, 2017 and 2016 , the amount of this expense was $79 million and $85 million , respectively. Other than those described previously, the accounting policies of each segment are the same and are described in Note 2 to the consolidated financial statements included in our 2016 Form 10-K. Transactions between reportable segments primarily consist of sales of services rendered by our Healthcare Services segment, primarily pharmacy, provider, and clinical care services, to our Retail, Group and Specialty, and Individual Commercial segment customers . Intersegment sales and expenses are recorded at fair value and eliminated in consolidation. Members served by our segments often use the same provider networks, enabling us in some instances to obtain more favorable contract terms with providers. Our segments also share indirect costs and assets. As a result, the profitability of each segment is interdependent. We allocate most operating expenses to our segments. Assets and certain corporate income and expenses are not allocated to the segments, including the portion of investment income not supporting segment operations, interest expense on corporate debt, and certain other corporate expenses. These items are managed at a corporate level. These corporate amounts are reported separately from our reportable segments and are included with intersegment eliminations in the tables presenting segment results below. Our segment results were as follows for the three and nine months ended September 30, 2017 and 2016 : Retail Group and Specialty Healthcare Individual Commercial Other Eliminations/ Consolidated (in millions) Three months ended September 30, 2017 Revenues - external customers Premiums: Individual Medicare Advantage $ 8,077 $ — $ — $ — $ — $ — $ 8,077 Group Medicare Advantage 1,272 — — — — — 1,272 Medicare stand-alone PDP 921 — — — — — 921 Total Medicare 10,270 — — — — — 10,270 Fully-insured 121 1,370 — 224 — — 1,715 Specialty — 331 — — — — 331 Medicaid and other 630 — — — 9 — 639 Total premiums 11,021 1,701 — 224 9 — 12,955 Services revenue: Provider — — 60 — — — 60 ASO and other 2 140 — — 1 — 143 Pharmacy — — 20 — — — 20 Total services revenue 2 140 80 — 1 — 223 Total revenues - external customers 11,023 1,841 80 224 10 — 13,178 Intersegment revenues Services — 5 4,339 — — (4,344 ) — Products — — 1,572 — — (1,572 ) — Total intersegment revenues — 5 5,911 — — (5,916 ) — Investment income 23 7 9 1 22 42 104 Total revenues 11,046 1,853 6,000 225 32 (5,874 ) 13,282 Operating expenses: Benefits 9,294 1,354 — 147 34 (187 ) 10,642 Operating costs 1,081 385 5,726 49 3 (5,556 ) 1,688 Depreciation and amortization 61 21 34 3 — (25 ) 94 Total operating expenses 10,436 1,760 5,760 199 37 (5,768 ) 12,424 Income (loss) from operations 610 93 240 26 (5 ) (106 ) 858 Interest expense — — — — — 59 59 Income (loss) before income taxes $ 610 $ 93 $ 240 $ 26 $ (5 ) $ (165 ) $ 799 Retail Group and Specialty Healthcare Individual Commercial Other Eliminations/ Consolidated (in millions) Three months ended September 30, 2016 Revenues - external customers Premiums: Individual Medicare Advantage $ 7,977 $ — $ — $ — $ — $ — $ 7,977 Group Medicare Advantage 1,067 — — — — — 1,067 Medicare stand-alone PDP 1,004 — — — — — 1,004 Total Medicare 10,048 — — — — — 10,048 Fully-insured 109 1,350 — 882 — — 2,341 Specialty — 318 — — — — 318 Medicaid and other 652 2 — — 10 — 664 Total premiums 10,809 1,670 — 882 10 — 13,371 Services revenue: Provider — — 69 — — — 69 ASO and other 2 147 — — 1 — 150 Pharmacy — — 8 — — — 8 Total services revenue 2 147 77 — 1 — 227 Total revenues - external customers 10,811 1,817 77 882 11 — 13,598 Intersegment revenues Services — 5 4,741 — — (4,746 ) — Products — — 1,580 — — (1,580 ) — Total intersegment revenues — 5 6,321 — — (6,326 ) — Investment income 22 7 8 — 17 42 96 Total revenues 10,833 1,829 6,406 882 28 (6,284 ) 13,694 Operating expenses: Benefits 9,031 1,352 — 727 26 (236 ) 10,900 Operating costs 1,143 421 6,073 144 4 (6,046 ) 1,739 Merger termination fee and related costs, net — — — — — 20 20 Depreciation and amortization 51 19 36 9 — (29 ) 86 Total operating expenses 10,225 1,792 6,109 880 30 (6,291 ) 12,745 Income (loss) from operations 608 37 297 2 (2 ) 7 949 Interest expense — — — — — 47 47 Income (loss) before income taxes $ 608 $ 37 $ 297 $ 2 $ (2 ) $ (40 ) $ 902 Retail Group and Specialty Healthcare Individual Commercial Other Eliminations/ Consolidated (in millions) Nine months ended September 30, 2017 Revenues - external customers Premiums: Individual Medicare Advantage $ 24,735 $ — $ — $ — $ — $ — $ 24,735 Group Medicare Advantage 3,867 — — — — — 3,867 Medicare stand-alone PDP 2,787 — — — — — 2,787 Total Medicare 31,389 — — — — — 31,389 Fully-insured 357 4,098 — 754 — — 5,209 Specialty — 976 — — — — 976 Medicaid and other 1,954 — — — 28 — 1,982 Total premiums 33,700 5,074 — 754 28 — 39,556 Services revenue: Provider — — 193 — — — 193 ASO and other 6 444 — — 5 — 455 Pharmacy — — 58 — — — 58 Total services revenue 6 444 251 — 5 — 706 Total revenues - external customers 33,706 5,518 251 754 33 — 40,262 Intersegment revenues Services — 15 12,958 — — (12,973 ) — Products — — 4,706 — — (4,706 ) — Total intersegment revenues — 15 17,664 — — (17,679 ) — Investment income 72 25 25 3 64 127 316 Total revenues 33,778 5,558 17,940 757 97 (17,552 ) 40,578 Operating expenses: Benefits 29,017 3,952 — 389 95 (596 ) 32,857 Operating costs 2,998 1,178 17,083 151 9 (16,725 ) 4,694 Merger termination fee and related costs, net — — — — — (947 ) (947 ) Depreciation and amortization 176 63 103 10 — (74 ) 278 Total operating expenses 32,191 5,193 17,186 550 104 (18,342 ) 36,882 Income (loss) from operations 1,587 365 754 207 (7 ) 790 3,696 Interest expense — — — — — 166 166 Income (loss) before income taxes $ 1,587 $ 365 $ 754 $ 207 $ (7 ) $ 624 $ 3,530 Retail Group and Specialty Healthcare Individual Commercial Other Eliminations/ Consolidated (in millions) Nine months ended September 30, 2016 Revenues - external customers Premiums: Individual Medicare Advantage $ 24,054 $ — $ — $ — $ — $ — $ 24,054 Group Medicare Advantage 3,229 — — — — — 3,229 Medicare stand-alone PDP 3,058 — — — — — 3,058 Total Medicare 30,341 — — — — — 30,341 Fully-insured 319 4,044 — 2,799 — — 7,162 Specialty — 957 — — — — 957 Medicaid and other 1,960 12 — — 29 — 2,001 Total premiums 32,620 5,013 — 2,799 29 — 40,461 Services revenue: Provider — — 214 — — — 214 ASO and other 5 500 1 — 7 — 513 Pharmacy — — 22 — — — 22 Total services revenue 5 500 237 — 7 — 749 Total revenues - external customers 32,625 5,513 237 2,799 36 — 41,210 Intersegment revenues Services — 17 14,292 — — (14,309 ) — Products — — 4,373 — — (4,373 ) — Total intersegment revenues — 17 18,665 — — (18,682 ) — Investment income 68 19 22 3 48 131 291 Total revenues 32,693 5,549 18,924 2,802 84 (18,551 ) 41,501 Operating expenses: Benefits 27,991 3,876 — 2,545 82 (688 ) 33,806 Operating costs 3,294 1,278 17,989 465 12 (17,866 ) 5,172 Merger termination fee and related costs, net — — — — — 81 81 Depreciation and amortization 145 62 107 27 — (78 ) 263 Total operating expenses 31,430 5,216 18,096 3,037 94 (18,551 ) 39,322 Income (loss) from operations 1,263 333 828 (235 ) (10 ) — 2,179 Interest expense — — — — — 141 141 Income (loss) before income taxes $ 1,263 $ 333 $ 828 $ (235 ) $ (10 ) $ (141 ) $ 2,038 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities Classified as Current and Long-Term | Investment securities classified as current and long-term were as follows at September 30, 2017 and December 31, 2016 , respectively: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) September 30, 2017 U.S. Treasury and other U.S. government U.S. Treasury and agency obligations $ 821 $ 1 $ (8 ) $ 814 Mortgage-backed securities 1,423 5 (19 ) 1,409 Tax-exempt municipal securities 3,457 28 (16 ) 3,469 Mortgage-backed securities: Residential 7 — — 7 Commercial 399 3 (2 ) 400 Asset-backed securities 140 — — 140 Corporate debt securities 4,921 215 (37 ) 5,099 Total debt securities $ 11,168 $ 252 $ (82 ) $ 11,338 December 31, 2016 U.S. Treasury and other U.S. government U.S. Treasury and agency obligations $ 800 $ 1 $ (15 ) $ 786 Mortgage-backed securities 1,662 6 (31 ) 1,637 Tax-exempt municipal securities 3,358 15 (68 ) 3,305 Mortgage-backed securities: Residential 9 — — 9 Commercial 307 1 (4 ) 304 Asset-backed securities 160 — — 160 Corporate debt securities 3,530 145 (78 ) 3,597 Total debt securities $ 9,826 $ 168 $ (196 ) $ 9,798 |
Schedule of Gross Unrealized Losses and Fair Value of Securities | Gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows at September 30, 2017 and December 31, 2016 , respectively: Less than 12 months 12 months or more Total Fair Gross Fair Gross Fair Gross (in millions) September 30, 2017 U.S. Treasury and other U.S. U.S. Treasury and agency $ 522 $ (5 ) $ 137 $ (3 ) $ 659 $ (8 ) Mortgage-backed 986 (17 ) 82 (2 ) 1,068 (19 ) Tax-exempt municipal 1,320 (9 ) 460 (7 ) 1,780 (16 ) Mortgage-backed securities: Residential — — 4 — 4 — Commercial 115 (2 ) — — 115 (2 ) Asset-backed securities 64 — — — 64 — Corporate debt securities 999 (15 ) 469 (22 ) 1,468 (37 ) Total debt securities $ 4,006 $ (48 ) $ 1,152 $ (34 ) $ 5,158 $ (82 ) December 31, 2016 U.S. Treasury and other U.S. U.S. Treasury and agency $ 697 $ (15 ) $ 3 $ — $ 700 $ (15 ) Mortgage-backed 1,528 (31 ) 3 — 1,531 (31 ) Tax-exempt municipal 2,756 (67 ) 43 (1 ) 2,799 (68 ) Mortgage-backed securities: Residential — — 4 — 4 — Commercial 182 (3 ) 24 (1 ) 206 (4 ) Asset-backed securities 51 — 63 — 114 — Corporate debt securities 1,544 (71 ) 69 (7 ) 1,613 (78 ) Total debt securities $ 6,758 $ (187 ) $ 209 $ (9 ) $ 6,967 $ (196 ) |
Schedule of Realized Gains (Losses) Related to Investment Securities Included Within Investment Income | The detail of realized gains (losses) related to investment securities and included within investment income was as follows for the three and nine months ended September 30, 2017 and 2016 : Three months ended Nine months ended 2017 2016 2017 2016 (in millions) Gross realized gains $ 3 $ 37 $ 34 $ 88 Gross realized losses (3 ) (11 ) (6 ) (23 ) Net realized capital gains $ — $ 26 $ 28 $ 65 |
Schedule of Contractual Maturity of Debt Securities Available for Sale | The contractual maturities of debt securities available for sale at September 30, 2017 , regardless of their balance sheet classification, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair (in millions) Due within one year $ 501 $ 502 Due after one year through five years 2,999 3,014 Due after five years through ten years 2,555 2,561 Due after ten years 3,144 3,305 Mortgage and asset-backed securities 1,969 1,956 Total debt securities $ 11,168 $ 11,338 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes our fair value measurements at September 30, 2017 and December 31, 2016 , respectively, for financial assets measured at fair value on a recurring basis: Fair Value Measurements Using Fair Quoted Prices Other Unobservable (in millions) September 30, 2017 Cash equivalents $ 9,368 $ 9,368 $ — $ — Debt securities: U.S. Treasury and other U.S. government U.S. Treasury and agency obligations 814 — 814 — Mortgage-backed securities 1,409 — 1,409 — Tax-exempt municipal securities 3,469 — 3,469 — Mortgage-backed securities: Residential 7 — 7 — Commercial 400 — 400 — Asset-backed securities 140 — 140 — Corporate debt securities 5,099 — 5,098 1 Total debt securities 11,338 — 11,337 1 Total invested assets $ 20,706 $ 9,368 $ 11,337 $ 1 December 31, 2016 Cash equivalents $ 3,654 $ 3,654 $ — $ — Debt securities: U.S. Treasury and other U.S. government U.S. Treasury and agency obligations 786 — 786 — Mortgage-backed securities 1,637 — 1,637 — Tax-exempt municipal securities 3,305 — 3,302 3 Mortgage-backed securities: Residential 9 — 9 — Commercial 304 — 304 — Asset-backed securities 160 — 160 — Corporate debt securities 3,597 — 3,593 4 Total debt securities 9,798 — 9,791 7 Total invested assets $ 13,452 $ 3,654 $ 9,791 $ 7 |
Changes in Fair Value of Assets Measured Using Significant Unobservable Inputs | During the three and nine months ended September 30, 2017 and 2016 , the changes in the fair value of the assets measured using significant unobservable inputs (Level 3) were comprised of the following: For the three months ended September 30, 2017 2016 Private Auction Total Private Auction Total (in millions) Beginning balance at July 1 $ 4 $ — $ 4 $ 6 $ 3 $ 9 Sales (3 ) — (3 ) — — — Balance at September 30 $ 1 $ — $ 1 $ 6 $ 3 $ 9 For the nine months ended September 30, 2017 2016 Private Auction Total Private Auction Total (in millions) Beginning balance at January 1 $ 4 $ 3 $ 7 $ 6 $ 5 $ 11 Sales (3 ) — (3 ) — — — Settlements — (3 ) (3 ) — (2 ) (2 ) Balance at September 30 $ 1 $ — $ 1 $ 6 $ 3 $ 9 |
MEDICARE PART D (Tables)
MEDICARE PART D (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Balance Sheet Amounts Associated With Medicare Part D | The accompanying condensed consolidated balance sheets include the following amounts associated with Medicare Part D at September 30, 2017 and December 31, 2016 . CMS subsidies/discounts in the table below include the reinsurance and low-income cost subsidies funded by CMS for which we assume no risk as well as brand name prescription drug discounts for Part D plan participants in the coverage gap funded by CMS and pharmaceutical manufacturers. September 30, 2017 December 31, 2016 Risk CMS Risk CMS (in millions) Other current assets $ 9 $ 1,058 $ 8 $ 1,001 Trade accounts payable and accrued expenses (118 ) (2,134 ) (158 ) (128 ) Net current (liability) asset (109 ) (1,076 ) (150 ) 873 Other long-term assets 3 — — — Other long-term liabilities (180 ) — — — Net long-term liability (177 ) — — — Total net (liability) asset $ (286 ) $ (1,076 ) $ (150 ) $ 873 |
HEALTH CARE REFORM (Tables)
HEALTH CARE REFORM (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Schedule Of Risk Adjustment, Reinsurance Recoverable And Risk Corridor Settlement | The accompanying condensed consolidated balance sheets include the following amounts associated with the 3Rs at September 30, 2017 and December 31, 2016 . September 30, 2017 December 31, 2016 Risk Adjustment Reinsurance Risk Adjustment Reinsurance (in millions) Prior Coverage Years Premiums receivable $ 127 $ — $ 307 $ — Other current assets — 44 — 260 Trade accounts payable and — — (117 ) — Net current asset 127 44 190 260 Other long-term assets — — 6 — Total prior coverage years' net 127 44 196 260 Current Coverage Year Premiums receivable 30 — — — Trade accounts payable and (57 ) — — — Net current liability (27 ) — — — Other long-term assets 29 — — — Other long-term liabilities — — — — Net long-term asset 29 — — — Total 2017 coverage year net 2 — — — Total net asset $ 129 $ 44 $ 196 $ 260 |
GOODWILL AND OTHER INTANGIBLE26
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill By Reportable Segments | Changes in the carrying amount of goodwill for our reportable segments for the nine months ended September 30, 2017 were as follows: Retail Group and Specialty Healthcare Total (in millions) Balance at January 1, 2017 $ 1,059 $ 261 $ 1,952 $ 3,272 Acquisitions — — 9 9 Balance at September 30, 2017 $ 1,059 $ 261 $ 1,961 $ 3,281 |
Details of Intangible Assets Included in Other Long-Term Assets | The following table presents details of our other intangible assets included in other long-term assets in the accompanying condensed consolidated balance sheets at September 30, 2017 and December 31, 2016 . September 30, 2017 December 31, 2016 Weighted Cost Accumulated Net Cost Accumulated Net ($ in millions) Other intangible assets: Customer contracts/ 9.8 years $ 566 $ 388 $ 178 $ 566 $ 347 $ 219 Trade names and 8.2 years 104 77 27 104 69 35 Provider contracts 14.1 years 51 33 18 51 29 22 Noncompetes and 8.1 years 33 29 4 32 28 4 Total other intangible 9.8 years $ 754 $ 527 $ 227 $ 753 $ 473 $ 280 |
Schedule of Estimated Amortization Expense | The following table presents our estimate of amortization expense for 2017 and each of the five next succeeding years: (in millions) For the years ending December 31, 2017 $ 71 2018 63 2019 52 2020 48 2021 14 2022 11 |
BENEFITS PAYABLE (Tables)
BENEFITS PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Activity in Benefits Payable | Activity in benefits payable for our Individual Commercial segment was as follows for the nine months ended September 30, 2017 and 2016 : For the nine months ended September 30, 2017 2016 (in millions) Balances, beginning of period $ 454 $ 740 Less: Premium deficiency reserve — (176 ) Balances, beginning of period, net 454 564 Incurred related to: Current year 502 2,694 Prior years (46 ) (104 ) Total incurred 456 2,590 Paid related to: Current year (393 ) (2,273 ) Prior years (383 ) (430 ) Total paid (776 ) (2,703 ) Premium deficiency reserve — 206 Balance, end of period $ 134 $ 657 Activity in benefits payable for our Group and Specialty segment, excluding military services, was as follows for the nine months ended September 30, 2017 and 2016 : For the nine months ended September 30, 2017 2016 (in millions) Balances, beginning of period $ 578 $ 616 Incurred related to: Current year 3,996 3,918 Prior years (44 ) (42 ) Total incurred 3,952 3,876 Paid related to: Current year (3,452 ) (3,337 ) Prior years (517 ) (557 ) Total paid (3,969 ) (3,894 ) Balances, end of period $ 561 $ 598 Activity in benefits payable for our Retail segment was as follows for the nine months ended September 30, 2017 and 2016 : For the nine months ended September 30, 2017 2016 (in millions) Balances, beginning of period $ 3,507 $ 3,600 Less: Reinsurance recoverables (76 ) (85 ) Balances, beginning of period, net 3,431 3,515 Incurred related to: Current year 29,356 28,369 Prior years (339 ) (378 ) Total incurred 29,017 27,991 Paid related to: Current year (25,460 ) (24,822 ) Prior years (2,822 ) (2,990 ) Total paid (28,282 ) (27,812 ) Reinsurance recoverable 70 77 Balances, end of period $ 4,236 $ 3,771 On a consolidated basis, activity in benefits payable, excluding military services, was as follows for the nine months ended September 30, 2017 and 2016 : For the nine months ended September 30, 2017 2016 (in millions) Balances, beginning of period $ 4,563 $ 4,976 Less: Premium deficiency reserve — (176 ) Less: Reinsurance recoverables (76 ) (85 ) Balances, beginning of period, net 4,487 4,715 Incurred related to: Current year 33,318 34,340 Prior years (430 ) (525 ) Total incurred 32,888 33,815 Paid related to: Current year (28,741 ) (29,768 ) Prior years (3,745 ) (3,996 ) Total paid (32,486 ) (33,764 ) Premium deficiency reserve — 206 Reinsurance recoverable 70 77 Balances, end of period $ 4,959 $ 5,049 |
Benefit Expenses Excluded From Activity in Benefits Payable | Benefits expense excluded from the previous table was as follows for the nine months ended September 30, 2017 and 2016 . For the nine months ended September 30, 2017 2016 (in millions) Premium deficiency reserve - Individual Commercial $ — $ 30 Military services — 7 Future policy benefits: Individual Commercial (67 ) (82 ) Other Businesses 36 36 Total future policy benefits (31 ) (46 ) Total $ (31 ) $ (9 ) |
Schedule Of Benefits Payable | The reconciliation of the net incurred and paid claims development tables to benefits payable in the consolidated statement of financial position is as follows: Reconciliation of the Disclosure of Incurred and Paid Claims Development to Benefits Payable, net of reinsurance September 30, 2017 Net outstanding liabilities Retail $ 4,166 Group and Specialty 561 Individual Commercial 134 Other Businesses 28 Benefits payable, net of reinsurance 4,889 Reinsurance recoverable on unpaid claims Retail 70 Total reinsurance recoverable on unpaid claims 70 Total benefits payable, gross $ 4,959 |
EARNINGS PER COMMON SHARE COM28
EARNINGS PER COMMON SHARE COMPUTATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Details Supporting Computation of Earnings Per Share | Detail supporting the computation of basic and diluted earnings per common share was as follows for the three and nine months ended September 30, 2017 and 2016 : Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 (dollars in millions, except per common share results; number of shares in thousands) Net income available for common stockholders $ 499 $ 450 $ 2,264 $ 1,015 Weighted average outstanding shares of common stock 144,215 149,417 145,546 149,321 Dilutive effect of: Employee stock options 165 210 174 216 Restricted stock 980 1,277 902 1,332 Shares used to compute diluted earnings per common share 145,360 150,904 146,622 150,869 Basic earnings per common share $ 3.46 $ 3.01 $ 15.56 $ 6.80 Diluted earnings per common share $ 3.44 $ 2.98 $ 15.44 $ 6.73 Number of antidilutive stock options and restricted stock 399 658 595 873 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Details of Dividend Payments | The following table provides details of dividend payments, excluding dividend equivalent rights for unvested stock awards, in 2016 and 2017 under our Board approved quarterly cash dividend policy: Record Payment Amount Total (in millions) 2016 payments 12/30/2015 1/29/2016 $ 0.29 $ 43 3/31/2016 4/29/2016 $ 0.29 $ 43 6/30/2016 7/29/2016 $ 0.29 $ 43 10/13/2016 10/28/2016 $ 0.29 $ 43 2017 payments 1/12/2017 1/27/2017 $ 0.29 $ 43 3/31/2017 4/28/2017 $ 0.40 $ 58 6/30/2017 7/31/2017 $ 0.40 $ 58 9/29/2017 10/27/2017 $ 0.40 $ 57 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of carrying value of long-term debt outstanding | The carrying value of debt outstanding, net of unamortized debt issuance costs, was as follows at September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 (in millions) Short-term: Commercial paper $ 150 $ 300 $500 million, 7.20% Senior notes due June 15, 2018 501 — $300 million, 6.30% Senior notes due August 1, 2018 302 — Total short-term debt 953 300 Long-term: Senior notes: $500 million, 7.20% due June 15, 2018 — 501 $300 million, 6.30% due August 1, 2018 — 304 $400 million, 2.625% due October 1, 2019 399 398 $600 million, 3.15% due December 1, 2022 596 595 $600 million, 3.85% due October 1, 2024 595 595 $600 million, 3.95% due March 15, 2027 594 — $250 million, 8.15% due June 15, 2038 263 264 $400 million, 4.625% due December 1, 2042 396 396 $750 million, 4.95% due October 1, 2044 739 739 $400 million, 4.80% due March 15, 2047 395 — Total long-term debt 3,977 3,792 Total debt $ 4,930 $ 4,092 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, By Segment | Our segment results were as follows for the three and nine months ended September 30, 2017 and 2016 : Retail Group and Specialty Healthcare Individual Commercial Other Eliminations/ Consolidated (in millions) Three months ended September 30, 2017 Revenues - external customers Premiums: Individual Medicare Advantage $ 8,077 $ — $ — $ — $ — $ — $ 8,077 Group Medicare Advantage 1,272 — — — — — 1,272 Medicare stand-alone PDP 921 — — — — — 921 Total Medicare 10,270 — — — — — 10,270 Fully-insured 121 1,370 — 224 — — 1,715 Specialty — 331 — — — — 331 Medicaid and other 630 — — — 9 — 639 Total premiums 11,021 1,701 — 224 9 — 12,955 Services revenue: Provider — — 60 — — — 60 ASO and other 2 140 — — 1 — 143 Pharmacy — — 20 — — — 20 Total services revenue 2 140 80 — 1 — 223 Total revenues - external customers 11,023 1,841 80 224 10 — 13,178 Intersegment revenues Services — 5 4,339 — — (4,344 ) — Products — — 1,572 — — (1,572 ) — Total intersegment revenues — 5 5,911 — — (5,916 ) — Investment income 23 7 9 1 22 42 104 Total revenues 11,046 1,853 6,000 225 32 (5,874 ) 13,282 Operating expenses: Benefits 9,294 1,354 — 147 34 (187 ) 10,642 Operating costs 1,081 385 5,726 49 3 (5,556 ) 1,688 Depreciation and amortization 61 21 34 3 — (25 ) 94 Total operating expenses 10,436 1,760 5,760 199 37 (5,768 ) 12,424 Income (loss) from operations 610 93 240 26 (5 ) (106 ) 858 Interest expense — — — — — 59 59 Income (loss) before income taxes $ 610 $ 93 $ 240 $ 26 $ (5 ) $ (165 ) $ 799 Retail Group and Specialty Healthcare Individual Commercial Other Eliminations/ Consolidated (in millions) Three months ended September 30, 2016 Revenues - external customers Premiums: Individual Medicare Advantage $ 7,977 $ — $ — $ — $ — $ — $ 7,977 Group Medicare Advantage 1,067 — — — — — 1,067 Medicare stand-alone PDP 1,004 — — — — — 1,004 Total Medicare 10,048 — — — — — 10,048 Fully-insured 109 1,350 — 882 — — 2,341 Specialty — 318 — — — — 318 Medicaid and other 652 2 — — 10 — 664 Total premiums 10,809 1,670 — 882 10 — 13,371 Services revenue: Provider — — 69 — — — 69 ASO and other 2 147 — — 1 — 150 Pharmacy — — 8 — — — 8 Total services revenue 2 147 77 — 1 — 227 Total revenues - external customers 10,811 1,817 77 882 11 — 13,598 Intersegment revenues Services — 5 4,741 — — (4,746 ) — Products — — 1,580 — — (1,580 ) — Total intersegment revenues — 5 6,321 — — (6,326 ) — Investment income 22 7 8 — 17 42 96 Total revenues 10,833 1,829 6,406 882 28 (6,284 ) 13,694 Operating expenses: Benefits 9,031 1,352 — 727 26 (236 ) 10,900 Operating costs 1,143 421 6,073 144 4 (6,046 ) 1,739 Merger termination fee and related costs, net — — — — — 20 20 Depreciation and amortization 51 19 36 9 — (29 ) 86 Total operating expenses 10,225 1,792 6,109 880 30 (6,291 ) 12,745 Income (loss) from operations 608 37 297 2 (2 ) 7 949 Interest expense — — — — — 47 47 Income (loss) before income taxes $ 608 $ 37 $ 297 $ 2 $ (2 ) $ (40 ) $ 902 Retail Group and Specialty Healthcare Individual Commercial Other Eliminations/ Consolidated (in millions) Nine months ended September 30, 2017 Revenues - external customers Premiums: Individual Medicare Advantage $ 24,735 $ — $ — $ — $ — $ — $ 24,735 Group Medicare Advantage 3,867 — — — — — 3,867 Medicare stand-alone PDP 2,787 — — — — — 2,787 Total Medicare 31,389 — — — — — 31,389 Fully-insured 357 4,098 — 754 — — 5,209 Specialty — 976 — — — — 976 Medicaid and other 1,954 — — — 28 — 1,982 Total premiums 33,700 5,074 — 754 28 — 39,556 Services revenue: Provider — — 193 — — — 193 ASO and other 6 444 — — 5 — 455 Pharmacy — — 58 — — — 58 Total services revenue 6 444 251 — 5 — 706 Total revenues - external customers 33,706 5,518 251 754 33 — 40,262 Intersegment revenues Services — 15 12,958 — — (12,973 ) — Products — — 4,706 — — (4,706 ) — Total intersegment revenues — 15 17,664 — — (17,679 ) — Investment income 72 25 25 3 64 127 316 Total revenues 33,778 5,558 17,940 757 97 (17,552 ) 40,578 Operating expenses: Benefits 29,017 3,952 — 389 95 (596 ) 32,857 Operating costs 2,998 1,178 17,083 151 9 (16,725 ) 4,694 Merger termination fee and related costs, net — — — — — (947 ) (947 ) Depreciation and amortization 176 63 103 10 — (74 ) 278 Total operating expenses 32,191 5,193 17,186 550 104 (18,342 ) 36,882 Income (loss) from operations 1,587 365 754 207 (7 ) 790 3,696 Interest expense — — — — — 166 166 Income (loss) before income taxes $ 1,587 $ 365 $ 754 $ 207 $ (7 ) $ 624 $ 3,530 Retail Group and Specialty Healthcare Individual Commercial Other Eliminations/ Consolidated (in millions) Nine months ended September 30, 2016 Revenues - external customers Premiums: Individual Medicare Advantage $ 24,054 $ — $ — $ — $ — $ — $ 24,054 Group Medicare Advantage 3,229 — — — — — 3,229 Medicare stand-alone PDP 3,058 — — — — — 3,058 Total Medicare 30,341 — — — — — 30,341 Fully-insured 319 4,044 — 2,799 — — 7,162 Specialty — 957 — — — — 957 Medicaid and other 1,960 12 — — 29 — 2,001 Total premiums 32,620 5,013 — 2,799 29 — 40,461 Services revenue: Provider — — 214 — — — 214 ASO and other 5 500 1 — 7 — 513 Pharmacy — — 22 — — — 22 Total services revenue 5 500 237 — 7 — 749 Total revenues - external customers 32,625 5,513 237 2,799 36 — 41,210 Intersegment revenues Services — 17 14,292 — — (14,309 ) — Products — — 4,373 — — (4,373 ) — Total intersegment revenues — 17 18,665 — — (18,682 ) — Investment income 68 19 22 3 48 131 291 Total revenues 32,693 5,549 18,924 2,802 84 (18,551 ) 41,501 Operating expenses: Benefits 27,991 3,876 — 2,545 82 (688 ) 33,806 Operating costs 3,294 1,278 17,989 465 12 (17,866 ) 5,172 Merger termination fee and related costs, net — — — — — 81 81 Depreciation and amortization 145 62 107 27 — (78 ) 263 Total operating expenses 31,430 5,216 18,096 3,037 94 (18,551 ) 39,322 Income (loss) from operations 1,263 333 828 (235 ) (10 ) — 2,179 Interest expense — — — — — 141 141 Income (loss) before income taxes $ 1,263 $ 333 $ 828 $ (235 ) $ (10 ) $ (141 ) $ 2,038 |
BASIS OF PRESENTATION AND SIG32
BASIS OF PRESENTATION AND SIGNIFICANT EVENTS Sale of Closed Block of Commercial Long-Term Care Insurance Business (Details) - KMG America Corporation - Disposed of by Sale - Forecast - Subsequent Event $ in Millions | Nov. 06, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Estimated net loss on sale of subsidiary | $ 400 |
Estimated pretax loss on sale of subsidiary | 900 |
Expected tax benefit on sale of subsidiary | 500 |
Parent company cash contributed to sale of subsidiary | 203 |
Transfer of statutory capital with sale of subsidiary | $ 150 |
BASIS OF PRESENTATION AND SIG33
BASIS OF PRESENTATION AND SIGNIFICANT EVENTS Workforce Optimization (Details) $ / shares in Units, $ in Millions | Feb. 16, 2017USD ($) | Sep. 30, 2017USD ($)employee$ / shares | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Oct. 31, 2017employee |
Business Acquisition [Line Items] | ||||||
Transaction costs (break up fee received) | $ 0 | $ 20 | $ (947) | $ 81 | ||
Expected number of associates impacted | employee | 2,700 | |||||
Expected percentage of workforce associates impacted | 5.70% | |||||
Estimated charges | $ 124 | |||||
Estimated charges per diluted share (in USD per share) | $ / shares | $ 0.54 | |||||
Subsequent Event | ||||||
Business Acquisition [Line Items] | ||||||
Entity number of employees | employee | 47,200 | |||||
Settled litigation | U.S. Department Of Justice vs. Humana and Aetna | ||||||
Business Acquisition [Line Items] | ||||||
Transaction costs (break up fee received) | $ 1,000 |
RECENTLY ISSUED ACCOUNTING PR34
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Revenue From Premiums and Investment Income | Revenues | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Concentration risk, percentage | 98.00% |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)position | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)position | Sep. 30, 2016USD ($) | |
Investment [Line Items] | ||||
Percentage of debt securities considered to be of investment-grade | 98.00% | 98.00% | ||
Maximum percentage of any general obligation bonds in one state | 9.00% | |||
Percent of tax exempt securities insured | 2.00% | 2.00% | ||
Securities in unrealized loss positions, number of positions | 680 | 680 | ||
Number of positions | 2,320 | 2,320 | ||
Other-than-temporary impairments | $ | $ 0 | $ 0 | $ 0 | $ 0 |
INVESTMENT SECURITIES - Securit
INVESTMENT SECURITIES - Securities Classified as Current and Long-Term (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Amortized Cost | $ 11,168 | $ 9,826 |
Gross Unrealized Gains | 252 | 168 |
Gross Unrealized Losses | (82) | (196) |
Fair Value | 11,338 | 9,798 |
Debt Securities | Tax-exempt municipal securities | ||
Investment [Line Items] | ||
Amortized Cost | 3,457 | 3,358 |
Gross Unrealized Gains | 28 | 15 |
Gross Unrealized Losses | (16) | (68) |
Fair Value | 3,469 | 3,305 |
Debt Securities | Residential Mortgage-Backed Securities | ||
Investment [Line Items] | ||
Amortized Cost | 7 | 9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 7 | 9 |
Debt Securities | Commercial Mortgage-Backed Securities | ||
Investment [Line Items] | ||
Amortized Cost | 399 | 307 |
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | (2) | (4) |
Fair Value | 400 | 304 |
Debt Securities | Asset-backed securities | ||
Investment [Line Items] | ||
Amortized Cost | 140 | 160 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 140 | 160 |
Debt Securities | Corporate debt securities | ||
Investment [Line Items] | ||
Amortized Cost | 4,921 | 3,530 |
Gross Unrealized Gains | 215 | 145 |
Gross Unrealized Losses | (37) | (78) |
Fair Value | 5,099 | 3,597 |
Debt Securities | U.S. Treasury and other U.S. government corporations and agencies | U.S. Treasury and agency obligations | ||
Investment [Line Items] | ||
Amortized Cost | 821 | 800 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | (8) | (15) |
Fair Value | 814 | 786 |
Debt Securities | U.S. Treasury and other U.S. government corporations and agencies | Mortgage-backed securities | ||
Investment [Line Items] | ||
Amortized Cost | 1,423 | 1,662 |
Gross Unrealized Gains | 5 | 6 |
Gross Unrealized Losses | (19) | (31) |
Fair Value | $ 1,409 | $ 1,637 |
INVESTMENT SECURITIES - Gross U
INVESTMENT SECURITIES - Gross Unrealized Losses and Fair Values of Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Less than 12 months, Fair Value | $ 4,006 | $ 6,758 |
Less than 12 months, Gross Unrealized Losses | (48) | (187) |
12 months or more, Fair Value | 1,152 | 209 |
12 months or more, Gross Unrealized Losses | (34) | (9) |
Total, Fair Value | 5,158 | 6,967 |
Total, Gross Unrealized Losses | (82) | (196) |
Debt Securities | Tax-exempt municipal securities | ||
Investment [Line Items] | ||
Less than 12 months, Fair Value | 1,320 | 2,756 |
Less than 12 months, Gross Unrealized Losses | (9) | (67) |
12 months or more, Fair Value | 460 | 43 |
12 months or more, Gross Unrealized Losses | (7) | (1) |
Total, Fair Value | 1,780 | 2,799 |
Total, Gross Unrealized Losses | (16) | (68) |
Debt Securities | Residential Mortgage-Backed Securities | ||
Investment [Line Items] | ||
Less than 12 months, Fair Value | 0 | 0 |
Less than 12 months, Gross Unrealized Losses | 0 | 0 |
12 months or more, Fair Value | 4 | 4 |
12 months or more, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 4 | 4 |
Total, Gross Unrealized Losses | 0 | 0 |
Debt Securities | Commercial Mortgage-Backed Securities | ||
Investment [Line Items] | ||
Less than 12 months, Fair Value | 115 | 182 |
Less than 12 months, Gross Unrealized Losses | (2) | (3) |
12 months or more, Fair Value | 0 | 24 |
12 months or more, Gross Unrealized Losses | 0 | (1) |
Total, Fair Value | 115 | 206 |
Total, Gross Unrealized Losses | (2) | (4) |
Debt Securities | Asset-backed securities | ||
Investment [Line Items] | ||
Less than 12 months, Fair Value | 64 | 51 |
Less than 12 months, Gross Unrealized Losses | 0 | 0 |
12 months or more, Fair Value | 0 | 63 |
12 months or more, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 64 | 114 |
Total, Gross Unrealized Losses | 0 | 0 |
Debt Securities | Corporate debt securities | ||
Investment [Line Items] | ||
Less than 12 months, Fair Value | 999 | 1,544 |
Less than 12 months, Gross Unrealized Losses | (15) | (71) |
12 months or more, Fair Value | 469 | 69 |
12 months or more, Gross Unrealized Losses | (22) | (7) |
Total, Fair Value | 1,468 | 1,613 |
Total, Gross Unrealized Losses | (37) | (78) |
Debt Securities | U.S. Treasury and other U.S. government corporations and agencies | U.S. Treasury and agency obligations | ||
Investment [Line Items] | ||
Less than 12 months, Fair Value | 522 | 697 |
Less than 12 months, Gross Unrealized Losses | (5) | (15) |
12 months or more, Fair Value | 137 | 3 |
12 months or more, Gross Unrealized Losses | (3) | 0 |
Total, Fair Value | 659 | 700 |
Total, Gross Unrealized Losses | (8) | (15) |
Debt Securities | U.S. Treasury and other U.S. government corporations and agencies | Mortgage-backed securities | ||
Investment [Line Items] | ||
Less than 12 months, Fair Value | 986 | 1,528 |
Less than 12 months, Gross Unrealized Losses | (17) | (31) |
12 months or more, Fair Value | 82 | 3 |
12 months or more, Gross Unrealized Losses | (2) | 0 |
Total, Fair Value | 1,068 | 1,531 |
Total, Gross Unrealized Losses | $ (19) | $ (31) |
INVESTMENT SECURITIES - Realize
INVESTMENT SECURITIES - Realized Gains (Losses) Within Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains | $ 3 | $ 37 | $ 34 | $ 88 |
Gross realized losses | (3) | (11) | (6) | (23) |
Net realized capital gains | $ 0 | $ 26 | $ 28 | $ 65 |
INVESTMENT SECURITIES - Contrac
INVESTMENT SECURITIES - Contractual Maturities, Available for Sale (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due within one year | $ 501 | |
Due after one year through five years | 2,999 | |
Due after five years through ten years | 2,555 | |
Due after ten years | 3,144 | |
Mortgage and asset-backed securities | 1,969 | |
Amortized Cost | 11,168 | $ 9,826 |
Fair Value | ||
Due within one year | 502 | |
Due after one year through five years | 3,014 | |
Due after five years through ten years | 2,561 | |
Due after ten years | 3,305 | |
Mortgage and asset-backed securities | 1,956 | |
Fair Value | $ 11,338 | $ 9,798 |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Upper limit percentage of Level 3 assets to total invested assets (less than) | 0.01% | |
Short-term debt | $ 953 | $ 300 |
Commercial Paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt | 150 | 300 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of debt outstanding | 4,780 | 3,792 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of debt outstanding | 5,185 | 4,004 |
Measured On Recurring Basis | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 20,706 | 13,452 |
Unobservable Inputs (Level 3) | Measured On Recurring Basis | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 1 | $ 7 |
FAIR VALUE - Financial Assets M
FAIR VALUE - Financial Assets Measured on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 11,338 | $ 9,798 |
Measured On Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,368 | 3,654 |
Debt securities | 11,338 | 9,798 |
Total invested assets | 20,706 | 13,452 |
Measured On Recurring Basis | Tax-exempt municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 3,469 | 3,305 |
Measured On Recurring Basis | Residential Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 7 | 9 |
Measured On Recurring Basis | Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 400 | 304 |
Measured On Recurring Basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 140 | 160 |
Measured On Recurring Basis | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 5,099 | 3,597 |
Measured On Recurring Basis | U.S. Treasury and other U.S. government corporations and agencies | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 814 | 786 |
Measured On Recurring Basis | U.S. Treasury and other U.S. government corporations and agencies | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,409 | 1,637 |
Measured On Recurring Basis | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,368 | 3,654 |
Debt securities | 0 | 0 |
Total invested assets | 9,368 | 3,654 |
Measured On Recurring Basis | Quoted Prices in Active Markets (Level 1) | Tax-exempt municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Quoted Prices in Active Markets (Level 1) | Residential Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Quoted Prices in Active Markets (Level 1) | Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Quoted Prices in Active Markets (Level 1) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Quoted Prices in Active Markets (Level 1) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Quoted Prices in Active Markets (Level 1) | U.S. Treasury and other U.S. government corporations and agencies | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Quoted Prices in Active Markets (Level 1) | U.S. Treasury and other U.S. government corporations and agencies | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Debt securities | 11,337 | 9,791 |
Total invested assets | 11,337 | 9,791 |
Measured On Recurring Basis | Other Observable Inputs (Level 2) | Tax-exempt municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 3,469 | 3,302 |
Measured On Recurring Basis | Other Observable Inputs (Level 2) | Residential Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 7 | 9 |
Measured On Recurring Basis | Other Observable Inputs (Level 2) | Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 400 | 304 |
Measured On Recurring Basis | Other Observable Inputs (Level 2) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 140 | 160 |
Measured On Recurring Basis | Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 5,098 | 3,593 |
Measured On Recurring Basis | Other Observable Inputs (Level 2) | U.S. Treasury and other U.S. government corporations and agencies | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 814 | 786 |
Measured On Recurring Basis | Other Observable Inputs (Level 2) | U.S. Treasury and other U.S. government corporations and agencies | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,409 | 1,637 |
Measured On Recurring Basis | Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Debt securities | 1 | 7 |
Total invested assets | 1 | 7 |
Measured On Recurring Basis | Unobservable Inputs (Level 3) | Tax-exempt municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 3 |
Measured On Recurring Basis | Unobservable Inputs (Level 3) | Residential Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Unobservable Inputs (Level 3) | Commercial Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Unobservable Inputs (Level 3) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1 | 4 |
Measured On Recurring Basis | Unobservable Inputs (Level 3) | U.S. Treasury and other U.S. government corporations and agencies | U.S. Treasury and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Measured On Recurring Basis | Unobservable Inputs (Level 3) | U.S. Treasury and other U.S. government corporations and agencies | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 0 | $ 0 |
FAIR VALUE - Changes in Level 3
FAIR VALUE - Changes in Level 3 Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 4 | $ 9 | $ 7 | $ 11 |
Sales | (3) | 0 | (3) | 0 |
Settlements | (3) | (2) | ||
Ending Balance | 1 | 9 | 1 | 9 |
Private Placements | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 4 | 6 | 4 | 6 |
Sales | (3) | 0 | (3) | 0 |
Settlements | 0 | 0 | ||
Ending Balance | 1 | 6 | 1 | 6 |
Auction Rate Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 0 | 3 | 3 | 5 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (3) | (2) | ||
Ending Balance | $ 0 | $ 3 | $ 0 | $ 3 |
MEDICARE PART D (Detail)
MEDICARE PART D (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Other current assets | $ 3,776 | $ 3,438 |
Trade accounts payable and accrued expenses | (4,888) | (2,467) |
Other long-term assets | 2,214 | 2,226 |
Other long-term liabilities | (457) | (263) |
Risk Corridor Settlement | ||
Segment Reporting Information [Line Items] | ||
Other current assets | 9 | 8 |
Trade accounts payable and accrued expenses | (118) | (158) |
Net current (liability) asset | (109) | (150) |
Other long-term assets | 3 | 0 |
Other long-term liabilities | (180) | 0 |
Net long-term asset (liability) | (177) | 0 |
Total net (liability) asset | (286) | (150) |
CMS Subsidies/ Discounts | ||
Segment Reporting Information [Line Items] | ||
Other current assets | 1,058 | 1,001 |
Trade accounts payable and accrued expenses | (2,134) | (128) |
Net current (liability) asset | (1,076) | 873 |
Other long-term assets | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Net long-term asset (liability) | 0 | 0 |
Total net (liability) asset | $ (1,076) | $ 873 |
HEALTH CARE REFORM (Details)
HEALTH CARE REFORM (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 11 Months Ended | ||||
Sep. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Nov. 02, 2017 | |
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Premium deficiency reserve | $ 176 | |||||||
Premium deficiency reserve, change in estimate | $ 208 | |||||||
Policyholder benefits and claims incurred, net, health, increase | $ 208 | |||||||
Write off of risk corridor receivables | 583 | |||||||
Other current assets | 3,438 | $ 3,776 | $ 3,776 | |||||
Trade accounts payable and accrued expenses | (2,467) | (4,888) | (4,888) | |||||
Other long-term assets | 2,226 | 2,214 | 2,214 | |||||
Other long-term liabilities | (263) | (457) | (457) | |||||
Subsequent Event | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Litigation recoveries sought | $ 611 | |||||||
Risk Adjustment Settlement | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Total net (liability) asset | 196 | 129 | 129 | |||||
Reinsurance Recoverables | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Total net (liability) asset | 260 | 44 | 44 | |||||
Health Care Reform | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Payment of annual health insurance industry fee | $ 916 | |||||||
Amortization of deferred charges | $ 231 | $ 687 | ||||||
2014 and 2015 Coverage Years | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Write off of risk corridor receivables | 415 | |||||||
2014 Coverage Year | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Risk corridor received since inception | 39 | |||||||
Prior Coverage Years | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Proceeds from reinsurance recoverable | 283 | 471 | ||||||
Proceeds from risk adjustment settlements and risk corridor | 176 | 88 | ||||||
Payments For Risk Adjustment Charges | 152 | $ 240 | ||||||
Prior Coverage Years | Risk Adjustment Settlement | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Premiums receivable | 307 | 127 | 127 | |||||
Other current assets | 0 | 0 | 0 | |||||
Trade accounts payable and accrued expenses | (117) | 0 | 0 | |||||
Net current (liability) asset | 190 | 127 | 127 | |||||
Other long-term assets | 6 | 0 | 0 | |||||
Total net (liability) asset | 196 | 127 | 127 | |||||
Prior Coverage Years | Reinsurance Recoverables | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Premiums receivable | 0 | 0 | 0 | |||||
Other current assets | 260 | 44 | 44 | |||||
Trade accounts payable and accrued expenses | 0 | 0 | 0 | |||||
Net current (liability) asset | 260 | 44 | 44 | |||||
Other long-term assets | 0 | 0 | 0 | |||||
Total net (liability) asset | 260 | 44 | 44 | |||||
Current Coverage Year | Risk Adjustment Settlement | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Premiums receivable | 0 | 30 | 30 | |||||
Trade accounts payable and accrued expenses | 0 | (57) | (57) | |||||
Net current (liability) asset | 0 | (27) | (27) | |||||
Other long-term assets | 0 | 29 | 29 | |||||
Other long-term liabilities | 0 | 0 | 0 | |||||
Net long-term asset (liability) | 0 | 29 | 29 | |||||
Total net (liability) asset | 0 | 2 | 2 | |||||
Current Coverage Year | Reinsurance Recoverables | ||||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||||
Premiums receivable | 0 | 0 | 0 | |||||
Trade accounts payable and accrued expenses | 0 | 0 | 0 | |||||
Net current (liability) asset | 0 | 0 | 0 | |||||
Other long-term assets | 0 | 0 | 0 | |||||
Other long-term liabilities | 0 | 0 | 0 | |||||
Net long-term asset (liability) | 0 | 0 | 0 | |||||
Total net (liability) asset | $ 0 | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE45
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Segments (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 3,272 |
Acquisitions | 9 |
Ending balance | 3,281 |
Retail | |
Goodwill [Roll Forward] | |
Beginning balance | 1,059 |
Acquisitions | 0 |
Ending balance | 1,059 |
Group and Specialty | |
Goodwill [Roll Forward] | |
Beginning balance | 261 |
Acquisitions | 0 |
Ending balance | 261 |
Healthcare Services | |
Goodwill [Roll Forward] | |
Beginning balance | 1,952 |
Acquisitions | 9 |
Ending balance | $ 1,961 |
GOODWILL AND OTHER INTANGIBLE46
GOODWILL AND OTHER INTANGIBLE ASSETS - Details of Intangible Assets Included in Other Long-Term Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 9 years 9 months 18 days | |
Cost | $ 754 | $ 753 |
Accumulated Amortization | 527 | 473 |
Net | $ 227 | 280 |
Customer contracts/ relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 9 years 9 months 18 days | |
Cost | $ 566 | 566 |
Accumulated Amortization | 388 | 347 |
Net | $ 178 | 219 |
Trade names and technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 8 years 2 months 12 days | |
Cost | $ 104 | 104 |
Accumulated Amortization | 77 | 69 |
Net | $ 27 | 35 |
Provider contracts | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 14 years 1 month 6 days | |
Cost | $ 51 | 51 |
Accumulated Amortization | 33 | 29 |
Net | $ 18 | 22 |
Noncompetes and other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 8 years 1 month 12 days | |
Cost | $ 33 | 32 |
Accumulated Amortization | 29 | 28 |
Net | $ 4 | $ 4 |
GOODWILL AND OTHER INTANGIBLE47
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Estimated Amortization Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense for other intangible assets | $ 18 | $ 18 | $ 54 | $ 59 |
2,017 | 71 | 71 | ||
2,018 | 63 | 63 | ||
2,019 | 52 | 52 | ||
2,020 | 48 | 48 | ||
2,021 | 14 | 14 | ||
2,022 | $ 11 | $ 11 |
BENEFITS PAYABLE - Activity in
BENEFITS PAYABLE - Activity in Benefits Payable (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 4,563 | $ 4,976 |
Less: Premium deficiency reserve | 0 | (176) |
Less: Reinsurance recoverables | (76) | (85) |
Balance | 4,487 | 4,715 |
Incurred related to: | ||
Current year | 33,318 | 34,340 |
Prior years | (430) | (525) |
Total incurred | 32,888 | 33,815 |
Paid related to: | ||
Current year | (28,741) | (29,768) |
Prior years | (3,745) | (3,996) |
Total paid | (32,486) | (33,764) |
Premium deficiency reserve | 0 | 206 |
Reinsurance recoverable | 70 | 77 |
Ending balance | 4,959 | 5,049 |
Retail | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | 3,507 | 3,600 |
Less: Reinsurance recoverables | (76) | (85) |
Balance | 3,431 | 3,515 |
Incurred related to: | ||
Current year | 29,356 | 28,369 |
Prior years | (339) | (378) |
Total incurred | 29,017 | 27,991 |
Paid related to: | ||
Current year | (25,460) | (24,822) |
Prior years | (2,822) | (2,990) |
Total paid | (28,282) | (27,812) |
Reinsurance recoverable | 70 | 77 |
Ending balance | 4,236 | 3,771 |
Total IBNR | 2,700 | |
Group and Specialty | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | 578 | 616 |
Incurred related to: | ||
Current year | 3,996 | 3,918 |
Prior years | (44) | (42) |
Total incurred | 3,952 | 3,876 |
Paid related to: | ||
Current year | (3,452) | (3,337) |
Prior years | (517) | (557) |
Total paid | (3,969) | (3,894) |
Ending balance | 561 | 598 |
Total IBNR | 490 | |
Individual Commercial | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | 454 | 740 |
Less: Premium deficiency reserve | 0 | (176) |
Balance | 454 | 564 |
Incurred related to: | ||
Current year | 502 | 2,694 |
Prior years | (46) | (104) |
Total incurred | 456 | 2,590 |
Paid related to: | ||
Current year | (393) | (2,273) |
Prior years | (383) | (430) |
Total paid | (776) | (2,703) |
Premium deficiency reserve | 0 | 206 |
Ending balance | 134 | $ 657 |
Total IBNR | $ 120 |
BENEFITS PAYABLE - Benefit Expe
BENEFITS PAYABLE - Benefit Expenses Excluded From Activity in Benefits Payable (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Premium deficiency reserve - Individual Commercial | $ 0 | $ 30 |
Military services | 0 | 7 |
Total future policy benefits | (31) | (46) |
Total | (31) | (9) |
Operating Segments | Individual Commercial | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total future policy benefits | (67) | (82) |
Other Businesses | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total future policy benefits | $ 36 | $ 36 |
BENEFITS PAYABLE - Reconciliati
BENEFITS PAYABLE - Reconciliation to Consolidated (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits payable, net of reinsurance | $ 4,889 | |||
Reinsurance recoverable on unpaid claims | 70 | $ 76 | $ 77 | $ 85 |
Benefits payable | 4,959 | 4,563 | 5,049 | 4,976 |
Retail | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Reinsurance recoverable on unpaid claims | 70 | 76 | 77 | 85 |
Benefits payable | 4,236 | 3,507 | 3,771 | 3,600 |
Group and Specialty | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits payable | 561 | 578 | 598 | 616 |
Individual Commercial | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits payable | 134 | $ 454 | $ 657 | $ 740 |
Operating Segments | Retail | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits payable, net of reinsurance | 4,166 | |||
Operating Segments | Group and Specialty | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits payable, net of reinsurance | 561 | |||
Operating Segments | Individual Commercial | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits payable, net of reinsurance | 134 | |||
Other Businesses | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits payable, net of reinsurance | $ 28 |
EARNINGS PER COMMON SHARE COM51
EARNINGS PER COMMON SHARE COMPUTATION (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income available for common stockholders | $ 499 | $ 450 | $ 2,264 | $ 1,015 |
Weighted average outstanding shares of common stock used to compute basic earnings per common share (in shares) | 144,215 | 149,417 | 145,546 | 149,321 |
Shares used to compute diluted earnings per common share (in shares) | 145,360 | 150,904 | 146,622 | 150,869 |
Basic earnings per common share (in dollars per share) | $ 3.46 | $ 3.01 | $ 15.56 | $ 6.80 |
Diluted earnings per common share (in dollars per share) | $ 3.44 | $ 2.98 | $ 15.44 | $ 6.73 |
Number of antidilutive stock options and restricted stock excluded from computation (in shares) | 399 | 658 | 595 | 873 |
Employee stock options | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive effect of employee stock options and restricted stock (in shares) | 165 | 210 | 174 | 216 |
Restricted stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive effect of employee stock options and restricted stock (in shares) | 980 | 1,277 | 902 | 1,332 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Details of Dividend Payments (Detail) - USD ($) $ / shares in Units, $ in Millions | Nov. 02, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsequent Event [Line Items] | |||||||||||
Record Date | Jun. 30, 2017 | Mar. 31, 2017 | Jan. 12, 2017 | Oct. 13, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 30, 2015 | ||||
Payment Date | Jul. 31, 2017 | Apr. 28, 2017 | Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | ||||
Amount per Share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.29 | ||||
Total Amount | $ 58 | $ 58 | $ 43 | $ 43 | $ 43 | $ 43 | $ 43 | ||||
Dividend declared per common share (in dollars per share) | $ 0.4 | $ 0.29 | $ 1.2 | $ 0.87 | |||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Record Date | Sep. 29, 2017 | ||||||||||
Payment Date | Oct. 27, 2017 | ||||||||||
Amount per Share (in dollars per share) | $ 0.40 | ||||||||||
Total Amount | $ 57 | ||||||||||
Dividend declared per common share (in dollars per share) | $ 0.40 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | Aug. 28, 2017 | Feb. 22, 2017 | Feb. 16, 2017 | Aug. 28, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Nov. 03, 2017 | Feb. 14, 2017 | Dec. 31, 2016 |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Share repurchase authorization | $ 2,250,000,000 | $ 2,000,000,000 | |||||||
Remaining authorized amount | 1,040,000,000 | ||||||||
Common shares acquired in connection with employee stock plans (in shares) | 370 | 450 | |||||||
Common shares acquired in connection with employee stock plans, amount | $ 79,000,000 | $ 75,000,000 | |||||||
Treasury stock reissued (in shares) | 1,400 | ||||||||
Treasury stock reissued | $ 99,000,000 | ||||||||
Accumulated other comprehensive gain (loss) | 12,000,000 | (66,000,000) | |||||||
Net unrealized gains on our investment securities | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Accumulated other comprehensive gain (loss) | 107,000,000 | (17,000,000) | |||||||
Additional liability that would exist on closed block of long-term care policies assuming unrealized gains on investments backing such products were realized and reinvested at current yields | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Accumulated other comprehensive gain (loss) | $ 95,000,000 | $ 49,000,000 | |||||||
Accelerated Share Repurchase Agreement | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Value of shares repurchased | $ 300,000,000 | $ 1,200,000,000 | $ 1,500,000,000 | ||||||
Share repurchase payment | $ 1,500,000,000 | ||||||||
Shares repurchased in open market (in shares) | 840 | 5,830 | 6,670 | ||||||
Average cost per share (in dollars per share) | $ 224.81 | ||||||||
Decrease in capital in excess of par value | $ 300,000,000 | ||||||||
Subsequent Event | February 14, 2017 Share Repurchase Authorization | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Remaining authorized amount | $ 239,000,000 |
INCOME TAXES (Detail)
INCOME TAXES (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 37.50% | 50.10% | 35.90% | 50.20% |
DEBT - Senior Notes (Details)
DEBT - Senior Notes (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2008 | |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 953,000,000 | $ 300,000,000 | ||
Total debt | 4,930,000,000 | 4,092,000,000 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 3,977,000,000 | 3,792,000,000 | ||
Proceeds from debt, net of discounts and offering expenses | $ 991,000,000 | |||
Redemption price, percentage | 100.00% | |||
Unamortized discount (premium) | $ 19,000,000 | 23,000,000 | $ 103,000,000 | |
Senior Notes | $500 million, 7.20% due June 15, 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | 501,000,000 | ||
Face amount | $ 500,000,000 | |||
Stated interest rate | 7.20% | |||
Senior Notes | $300 million, 6.30% due August 1, 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 304,000,000 | ||
Face amount | $ 300,000,000 | |||
Stated interest rate | 6.30% | |||
Senior Notes | $400 million, 2.625% due October 1, 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 399,000,000 | 398,000,000 | ||
Face amount | $ 400,000,000 | |||
Stated interest rate | 2.625% | |||
Senior Notes | $600 million, 3.15% due December 1, 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 596,000,000 | 595,000,000 | ||
Face amount | $ 600,000,000 | |||
Stated interest rate | 3.15% | |||
Senior Notes | $600 million, 3.85% due October 1, 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 595,000,000 | 595,000,000 | ||
Face amount | $ 600,000,000 | |||
Stated interest rate | 3.85% | |||
Senior Notes | $600 million, 3.95% due March 15, 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 594,000,000 | 0 | ||
Face amount | $ 600,000,000 | $ 600,000,000 | ||
Stated interest rate | 3.95% | 3.95% | ||
Senior Notes | $250 million, 8.15% due June 15, 2038 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 263,000,000 | 264,000,000 | ||
Face amount | $ 250,000,000 | |||
Stated interest rate | 8.15% | |||
Senior Notes | $400 million, 4.625% due December 1, 2042 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 396,000,000 | 396,000,000 | ||
Face amount | $ 400,000,000 | |||
Stated interest rate | 4.625% | |||
Senior Notes | $750 million, 4.95% due October 1, 2044 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 739,000,000 | 739,000,000 | ||
Face amount | $ 750,000,000 | |||
Stated interest rate | 4.95% | |||
Senior Notes | $400 million, 4.80% due March 15, 2047 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 395,000,000 | 0 | ||
Face amount | $ 400,000,000 | |||
Stated interest rate | 4.80% | |||
Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 150,000,000 | 300,000,000 | ||
Senior Notes | $500 million, 7.20% due June 15, 2018 | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | 501,000,000 | 0 | ||
Senior Notes | $300 million, 6.30% due August 1, 2018 | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 302,000,000 | $ 0 |
DEBT - Credit Agreement (Detail
DEBT - Credit Agreement (Details) | 9 Months Ended | ||
Sep. 30, 2017USD ($) | May 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | |||
Actual net worth | $ 11,211,000,000 | $ 10,685,000,000 | |
Credit Agreement | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Term | 5 years | ||
Maximum borrowing capacity | $ 2,500,000,000 | $ 1,000,000,000 | |
Minimum level of net worth required | 9,100,000,000 | ||
Actual net worth | $ 11,200,000,000 | ||
Required maximum leverage ratio | 3 | ||
Actual leverage ratio | 1.1 | ||
Uncommitted incremental loan facility | $ 500,000,000 | ||
Line of credit, outstanding borrowings | 0 | ||
Credit Agreement | Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Line of credit, outstanding borrowings | $ 0 | ||
Credit Agreement | London Interbank Offered Rate (LIBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate spread | 1.10% | ||
Facility fee (percentage) | 0.15% | ||
Credit Agreement | Minimum | London Interbank Offered Rate (LIBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate spread | 0.91% | ||
Facility fee (percentage) | 0.09% | ||
Credit Agreement | Maximum | London Interbank Offered Rate (LIBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate spread | 1.50% | ||
Facility fee (percentage) | 0.25% | ||
Unsecured Revolving Credit Agreement, Expires May 2022 | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Term | 5 years | ||
Maximum borrowing capacity | $ 2,000,000,000 | ||
Remaining borrowing capacity | $ 2,000,000,000 |
DEBT - Commercial Paper (Detail
DEBT - Commercial Paper (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Outstanding borrowings | $ 953,000,000 | $ 300,000,000 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | 2,000,000,000 | |
Maximum amount outstanding during period | 500,000,000 | |
Outstanding borrowings | $ 150,000,000 | $ 300,000,000 |
GUARANTEES AND CONTINGENCIES (D
GUARANTEES AND CONTINGENCIES (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017USD ($) | Sep. 30, 2017 | Nov. 02, 2017USD ($) | May 01, 2014matter | Jan. 06, 2012provider | |
Loss Contingencies [Line Items] | |||||
Number of medical providers questioned (one or more) | provider | 1 | ||||
Number of matters related to a Notice of Non-Intervention | matter | 1 | ||||
Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Litigation recoveries sought | $ 611 | ||||
TRICARE Contract | |||||
Loss Contingencies [Line Items] | |||||
Contract term, years | 5 years | ||||
Total Medicare | |||||
Loss Contingencies [Line Items] | |||||
Percentage of premiums and services revenue | 78.00% | ||||
Military services | |||||
Loss Contingencies [Line Items] | |||||
Percentage of premiums and services revenue | 0.70% | ||||
Medicaid | |||||
Loss Contingencies [Line Items] | |||||
Percentage of premiums and services revenue | 5.00% | ||||
Penn Treaty Insolvency | Insurance-related Assessments | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 54 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Segment | Sep. 30, 2016USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | Segment | 4 | |||
Member co-share amounts and government subsidies | $ 3,600 | $ 3,600 | $ 9,800 | $ 9,700 |
Depreciation and amortization classified as benefit expense | $ 26 | $ 31 | $ 79 | $ 85 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Premiums | $ 12,955 | $ 13,371 | $ 39,556 | $ 40,461 |
Services | 223 | 227 | 706 | 749 |
Total revenues - external customers | 13,178 | 13,598 | 40,262 | 41,210 |
Investment income | 104 | 96 | 316 | 291 |
Total revenues | 13,282 | 13,694 | 40,578 | 41,501 |
Benefits | 10,642 | 10,900 | 32,857 | 33,806 |
Operating costs | 1,688 | 1,739 | 4,694 | 5,172 |
Merger termination fee and related costs, net | 0 | 20 | (947) | 81 |
Depreciation and amortization | 94 | 86 | 278 | 263 |
Total operating expenses | 12,424 | 12,745 | 36,882 | 39,322 |
Income (loss) from operations | 858 | 949 | 3,696 | 2,179 |
Interest expense | 59 | 47 | 166 | 141 |
Income (loss) before income taxes | 799 | 902 | 3,530 | 2,038 |
Individual Medicare Advantage | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 8,077 | 7,977 | 24,735 | 24,054 |
Group Medicare Advantage | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 1,272 | 1,067 | 3,867 | 3,229 |
Medicare stand-alone PDP | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 921 | 1,004 | 2,787 | 3,058 |
Total Medicare | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 10,270 | 10,048 | 31,389 | 30,341 |
Fully-insured | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 1,715 | 2,341 | 5,209 | 7,162 |
Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 331 | 318 | 976 | 957 |
Medicaid and other | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 639 | 664 | 1,982 | 2,001 |
Provider | ||||
Segment Reporting Information [Line Items] | ||||
Services | 60 | 69 | 193 | 214 |
ASO and other | ||||
Segment Reporting Information [Line Items] | ||||
Services | 143 | 150 | 455 | 513 |
Pharmacy | ||||
Segment Reporting Information [Line Items] | ||||
Services | 20 | 8 | 58 | 22 |
Intersegment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (5,916) | (6,326) | (17,679) | (18,682) |
Intersegment revenues | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Intersegment revenues | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 5 | 5 | 15 | 17 |
Intersegment revenues | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 5,911 | 6,321 | 17,664 | 18,665 |
Intersegment revenues | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Intersegment revenues | Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (4,344) | (4,746) | (12,973) | (14,309) |
Intersegment revenues | Services | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Intersegment revenues | Services | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 5 | 5 | 15 | 17 |
Intersegment revenues | Services | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 4,339 | 4,741 | 12,958 | 14,292 |
Intersegment revenues | Services | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Intersegment revenues | Products | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (1,572) | (1,580) | (4,706) | (4,373) |
Intersegment revenues | Products | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Intersegment revenues | Products | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Intersegment revenues | Products | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,572 | 1,580 | 4,706 | 4,373 |
Intersegment revenues | Products | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 11,021 | 10,809 | 33,700 | 32,620 |
Services | 2 | 2 | 6 | 5 |
Total revenues - external customers | 11,023 | 10,811 | 33,706 | 32,625 |
Investment income | 23 | 22 | 72 | 68 |
Total revenues | 11,046 | 10,833 | 33,778 | 32,693 |
Benefits | 9,294 | 9,031 | 29,017 | 27,991 |
Operating costs | 1,081 | 1,143 | 2,998 | 3,294 |
Merger termination fee and related costs, net | 0 | 0 | 0 | |
Depreciation and amortization | 61 | 51 | 176 | 145 |
Total operating expenses | 10,436 | 10,225 | 32,191 | 31,430 |
Income (loss) from operations | 610 | 608 | 1,587 | 1,263 |
Interest expense | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 610 | 608 | 1,587 | 1,263 |
Operating Segments | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 1,701 | 1,670 | 5,074 | 5,013 |
Services | 140 | 147 | 444 | 500 |
Total revenues - external customers | 1,841 | 1,817 | 5,518 | 5,513 |
Investment income | 7 | 7 | 25 | 19 |
Total revenues | 1,853 | 1,829 | 5,558 | 5,549 |
Benefits | 1,354 | 1,352 | 3,952 | 3,876 |
Operating costs | 385 | 421 | 1,178 | 1,278 |
Merger termination fee and related costs, net | 0 | 0 | 0 | |
Depreciation and amortization | 21 | 19 | 63 | 62 |
Total operating expenses | 1,760 | 1,792 | 5,193 | 5,216 |
Income (loss) from operations | 93 | 37 | 365 | 333 |
Interest expense | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 93 | 37 | 365 | 333 |
Operating Segments | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Services | 80 | 77 | 251 | 237 |
Total revenues - external customers | 80 | 77 | 251 | 237 |
Investment income | 9 | 8 | 25 | 22 |
Total revenues | 6,000 | 6,406 | 17,940 | 18,924 |
Benefits | 0 | 0 | 0 | 0 |
Operating costs | 5,726 | 6,073 | 17,083 | 17,989 |
Merger termination fee and related costs, net | 0 | 0 | 0 | |
Depreciation and amortization | 34 | 36 | 103 | 107 |
Total operating expenses | 5,760 | 6,109 | 17,186 | 18,096 |
Income (loss) from operations | 240 | 297 | 754 | 828 |
Interest expense | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 240 | 297 | 754 | 828 |
Operating Segments | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 224 | 882 | 754 | 2,799 |
Services | 0 | 0 | 0 | 0 |
Total revenues - external customers | 224 | 882 | 754 | 2,799 |
Investment income | 1 | 0 | 3 | 3 |
Total revenues | 225 | 882 | 757 | 2,802 |
Benefits | 147 | 727 | 389 | 2,545 |
Operating costs | 49 | 144 | 151 | 465 |
Merger termination fee and related costs, net | 0 | 0 | 0 | |
Depreciation and amortization | 3 | 9 | 10 | 27 |
Total operating expenses | 199 | 880 | 550 | 3,037 |
Income (loss) from operations | 26 | 2 | 207 | (235) |
Interest expense | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 26 | 2 | 207 | (235) |
Operating Segments | Individual Medicare Advantage | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 8,077 | 7,977 | 24,735 | 24,054 |
Operating Segments | Individual Medicare Advantage | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Individual Medicare Advantage | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Individual Medicare Advantage | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Group Medicare Advantage | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 1,272 | 1,067 | 3,867 | 3,229 |
Operating Segments | Group Medicare Advantage | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Group Medicare Advantage | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Group Medicare Advantage | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Medicare stand-alone PDP | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 921 | 1,004 | 2,787 | 3,058 |
Operating Segments | Medicare stand-alone PDP | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Medicare stand-alone PDP | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Medicare stand-alone PDP | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Total Medicare | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 10,270 | 10,048 | 31,389 | 30,341 |
Operating Segments | Total Medicare | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Total Medicare | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Total Medicare | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Fully-insured | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 121 | 109 | 357 | 319 |
Operating Segments | Fully-insured | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 1,370 | 1,350 | 4,098 | 4,044 |
Operating Segments | Fully-insured | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Fully-insured | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 224 | 882 | 754 | 2,799 |
Operating Segments | Specialty | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Specialty | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 331 | 318 | 976 | 957 |
Operating Segments | Specialty | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Specialty | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Medicaid and other | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 630 | 652 | 1,954 | 1,960 |
Operating Segments | Medicaid and other | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 2 | 0 | 12 |
Operating Segments | Medicaid and other | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Medicaid and other | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Operating Segments | Provider | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Operating Segments | Provider | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Operating Segments | Provider | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Services | 60 | 69 | 193 | 214 |
Operating Segments | Provider | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Operating Segments | ASO and other | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Services | 2 | 2 | 6 | 5 |
Operating Segments | ASO and other | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Services | 140 | 147 | 444 | 500 |
Operating Segments | ASO and other | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 1 |
Operating Segments | ASO and other | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Operating Segments | Pharmacy | Retail | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Operating Segments | Pharmacy | Group and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Operating Segments | Pharmacy | Healthcare Services | ||||
Segment Reporting Information [Line Items] | ||||
Services | 20 | 8 | 58 | 22 |
Operating Segments | Pharmacy | Individual Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Other Businesses | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 9 | 10 | 28 | 29 |
Services | 1 | 1 | 5 | 7 |
Total revenues - external customers | 10 | 11 | 33 | 36 |
Investment income | 22 | 17 | 64 | 48 |
Total revenues | 32 | 28 | 97 | 84 |
Benefits | 34 | 26 | 95 | 82 |
Operating costs | 3 | 4 | 9 | 12 |
Merger termination fee and related costs, net | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total operating expenses | 37 | 30 | 104 | 94 |
Income (loss) from operations | (5) | (2) | (7) | (10) |
Interest expense | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | (5) | (2) | (7) | (10) |
Other Businesses | Individual Medicare Advantage | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Other Businesses | Group Medicare Advantage | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Other Businesses | Medicare stand-alone PDP | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Other Businesses | Total Medicare | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Other Businesses | Fully-insured | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Other Businesses | Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Other Businesses | Medicaid and other | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 9 | 10 | 28 | 29 |
Other Businesses | Provider | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Other Businesses | ASO and other | ||||
Segment Reporting Information [Line Items] | ||||
Services | 1 | 1 | 5 | 7 |
Other Businesses | Pharmacy | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Services | 0 | 0 | 0 | 0 |
Total revenues - external customers | 0 | 0 | 0 | 0 |
Investment income | 42 | 42 | 127 | 131 |
Total revenues | (5,874) | (6,284) | (17,552) | (18,551) |
Benefits | (187) | (236) | (596) | (688) |
Operating costs | (5,556) | (6,046) | (16,725) | (17,866) |
Merger termination fee and related costs, net | 20 | (947) | 81 | |
Depreciation and amortization | (25) | (29) | (74) | (78) |
Total operating expenses | (5,768) | (6,291) | (18,342) | (18,551) |
Income (loss) from operations | (106) | 7 | 790 | 0 |
Interest expense | 59 | 47 | 166 | 141 |
Income (loss) before income taxes | (165) | (40) | 624 | (141) |
Eliminations/ Corporate | Individual Medicare Advantage | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | Group Medicare Advantage | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | Medicare stand-alone PDP | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | Total Medicare | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | Fully-insured | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | Medicaid and other | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | Provider | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | ASO and other | ||||
Segment Reporting Information [Line Items] | ||||
Services | 0 | 0 | 0 | 0 |
Eliminations/ Corporate | Pharmacy | ||||
Segment Reporting Information [Line Items] | ||||
Services | $ 0 | $ 0 | $ 0 | $ 0 |