v3.25.3
Segments
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segments Segments
We currently have four reportable segments consisting of: 1) Medicaid; 2) Medicare; 3) Marketplace; and 4) Other. Our reportable segments are consistent with how we currently manage the business and view the markets we serve.
The Medicaid, Medicare, and Marketplace segments represent the government-funded or sponsored programs under which we offer managed healthcare services. The Other segment, which is insignificant to our consolidated results of operations, includes long-term services and supports consultative services in Wisconsin and the commercial portion of the business acquired in connection with the ConnectiCare transaction that closed effective February 1, 2025.
The key metrics used to assess the performance of our segments are revenue, margin and medical care ratio (“MCR”). MCR represents the amount of medical care costs as a percentage of premium revenue. Therefore, the underlying margin, or the amount earned by the segments after medical or service costs are deducted from revenue, represents the most important measure of earnings reviewed by management, and is used by our chief executive officer, who is our chief operating decision maker, to review results, assess performance, and allocate resources. Such oversight and decision making includes, among others, pricing, approving capital expenditures, and identifying growth opportunities. We do not report total assets by segment since this is not a metric used to assess segment performance or allocate resources.
Three Months Ended September 30, 2025
MedicaidMedicare MarketplaceOtherTotal
(In millions)
Revenue:
Premium revenue$8,015 $1,610 $1,197 $19 $10,841 
Service revenue— — — 21 21 
Revenue from external customers8,015 1,610 1,197 40 10,862 
Other operating revenues (1)
615 
Total revenue11,477 
Operating Expenses:
Medical care costs7,376 1,507 1,144 17 10,044 
Cost of service revenue— — — 20 20 
Segment expenses7,376 1,507 1,144 37 10,064 
Other operating expenses (2)
1,276 
Operating income137 
Less: interest expense49 
Income before income tax expense$88 
Segment Margin:
Medical margin$639 $103 $53 $2 $797 
Service margin— — — 1 1 
Three Months Ended September 30, 2024
MedicaidMedicare MarketplaceOtherTotal
(In millions)
Revenue:
Premium revenue$7,668 $1,367 $659 $— $9,694 
Service revenue— — — 20 20 
Revenue from external customers7,668 1,367 659 20 9,714 
Other operating revenues (1)
626 
Total revenue10,340 
Operating Expenses:
Medical care costs6,938 1,225 480 — 8,643 
Cost of service revenue— — — 19 19 
Segment expenses6,938 1,225 480 19 8,662 
Other operating expenses (2)
1,211 
Operating income467 
Less: interest expense29 
Income before income tax expense$438 
Segment Margin:
Medical margin$730 $142 $179 $— $1,051 
Service margin— — — 1 1 
Nine Months Ended September 30, 2025
MedicaidMedicare MarketplaceOtherTotal
(In millions)
Revenue:
Premium revenue$24,174 $4,686 $3,401 $76 $32,337 
Service revenue— — — 65 65 
Revenue from external customers24,174 4,686 3,401 141 32,402 
Other operating revenues (1)
1,649 
Total revenue34,051 
Operating Expenses:
Medical care costs22,047 4,250 2,990 65 29,352 
Cost of service revenue— — — 58 58 
Segment expenses22,047 4,250 2,990 123 29,410 
Other operating expenses (2)
3,698 
Operating income943 
Less: interest expense140 
Income before income tax expense$803 
Segment Margin:
Medical margin$2,127 $436 $411 $11 $2,985 
Service margin— — — 7 7 
Nine Months Ended September 30, 2024
MedicaidMedicare MarketplaceOtherTotal
(In millions)
Revenue:
Premium revenue$22,538 $4,250 $1,856 $— $28,644 
Service revenue— — — 60 60 
Revenue from external customers22,538 4,250 1,856 60 28,704 
Other operating revenues (1)
1,447 
Total revenue30,151 
Operating Expenses:
Medical care costs20,350 3,728 1,347 — 25,425 
Cost of service revenue— — — 55 55 
Segment expenses20,350 3,728 1,347 55 25,480 
Other operating expenses (2)
3,344 
Operating income1,327 
Less: interest expense84 
Income before income tax expense$1,243 
Segment Margin:
Medical margin$2,188 $522 $509 $— $3,219 
Service margin— — — 5 5 
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(1)Other operating revenues include premium tax revenue, investment income, and certain other revenue.
(2)Other operating expenses include general and administrative expenses, premium tax expenses, depreciation and amortization, and certain other operating expenses.