Medical Costs Payable (Notes)

3 Months Ended

Mar. 31, 2026

Short-Duration Insurance and Deposit Contracts

Medical Costs Payable

The following table shows the components of the change in medical costs payable for the three months ended March 31:


(in millions)	2026		2025
Medical costs payable, beginning of period	$	39,337	$	34,224
Reported medical costs:
Current year	74,726		73,731
Prior years	(1,050)		(320)
Changes in premium deficiency and loss contract reserves	(187)		—
Total reported medical costs	73,489		73,411
Medical payments:
Payments for current year	(44,021)		(43,827)
Payments for prior years	(29,205)		(26,669)
Total medical payments	(73,226)		(70,496)
Change in medical costs payable included within businesses held for sale	59		(3)
Medical costs payable, end of period	$	39,659	$	37,136

For the three months ended March 31, 2026, prior years’ medical cost reserve development was driven by a favorable respiratory illness season along with various other individually insignificant factors. For the three months ended March 31, 2025, prior years’ medical cost reserve development did not include any individually significant factors. Medical costs payable included reserves for claims incurred by consumers but not yet reported to the Company of $27.6 billion and $26.7 billion at March 31, 2026 and December 31, 2025, respectively.