Medical Expenses Payable

6 Months Ended

Jun. 30, 2025

The following table is a detail of medical expenses payable as of June 30, 2025 and December 31, 2024:


	June 30, 2025		December 31, 2024
Claims incurred but not paid	$	211,463	$	168,357
Capitation and risk-sharing payable	118,533		52,016
Other	125,158		69,415
Medical expenses payable	$	455,154	$	289,788

Each period, we re-examine previously established outstanding claims reserve estimates based on actual claims submissions and other changes in facts and circumstances. As more complete claim information becomes available, we adjust the amount of the estimates and include the changes in estimates in claim costs in the period in which the change is identified. Substantially, all of the total claims paid by us are known and settled within the first year from the date of service, and substantially, all remaining claim amounts are paid within a three-year period.

The following table presents components of the change in medical expenses payable as of June 30, 2025 and 2024:


	June 30, 2025		June 30, 2024
Claims incurred but not paid - beginning balance	$	168,357	$	95,664
Incurred related to:
Current year	559,320		407,156
Prior years	(21,066)		(7,257)
Total incurred, net of reinsurance	538,254		399,899
Payments related to:
Current year	368,014		263,824
Prior years	127,134		75,360
Total payments, net of reinsurance	495,148		339,184
Claims incurred but not paid - ending balance	211,463		156,379
Capitation payable, risk-sharing payable, and other	243,691		158,990
Total medical expenses payable	$	455,154	$	315,369

We re-examine previously established outstanding claims reserve estimates based on actual claims submissions and other changes in facts and circumstances. We recognized a favorable prior year development, excluding provision for adverse deviation, of $6,544 and $12,495 for the three and six months ended June 30, 2025. The favorable prior year development was primarily due to better-than-expected claims recoveries and actual claims expense being less than expected.