v3.26.1
Segments
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026
MedicaidMedicare MarketplaceOtherTotal
(In millions)
Revenue:
Premium revenue$7,927 $1,517 $724 $4 $10,172 
Service revenue— — — 22 22 
Revenue from external customers7,927 1,517 724 26 10,194 
Other operating revenues (1)
602 
Total revenue10,796 
Operating Expenses:
Medical care costs7,296 1,363 608 3 9,270 
Cost of service revenue— — — 21 21 
Segment expenses7,296 1,363 608 24 9,291 
Other operating expenses (2)
1,422 
Operating income83 
Less: interest expense54 
Income before income tax expense$29 
Segment Margin:
Medical margin$631 $154 $116 $1 $902 
Service margin— — — 1 1 
Three Months Ended March 31, 2025
MedicaidMedicare MarketplaceOtherTotal
(In millions)
Revenue:
Premium revenue$8,130 $1,468 $1,004 $26 $10,628 
Service revenue— — — 22 22 
Revenue from external customers8,130 1,468 1,004 48 10,650 
Other operating revenues (1)
497 
Total revenue11,147 
Operating Expenses:
Medical care costs7,339 1,296 821 23 9,479 
Cost of service revenue— — — 19 19 
Segment expenses7,339 1,296 821 42 9,498 
Other operating expenses (2)
1,216 
Operating income433 
Less: interest expense43 
Income before income tax expense$390 
Segment Margin:
Medical margin$791 $172 $183 $3 $1,149 
Service margin— — — 3 3 
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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, impairment, and certain other operating expenses.