Reserves for medical claims expenses are estimated using actuarial assumptions and recorded as Benefits payable liabilities on the Condensed Consolidated Balance Sheets. The assumptions for the estimates and for establishing the resulting liability are reviewed and any adjustments to reserves are reflected in the Condensed Consolidated Statements of Operations in the period in which the estimates are updated.


	Six Months Ended June 30, 2026						Six Months Ended June 30, 2025
(in thousands)	Benefits Payable		Unallocated Claims Adjustment Expense		Total		Benefits Payable		Unallocated Claims Adjustment Expense		Total
Benefits payable, beginning of the period	$	1,455,385	$	19,310	$	1,474,695	$	1,356,730	$	18,241	$	1,374,971
Less: Reinsurance recoverable	26,541		—		26,541		58,635		—		58,635
Benefits payable, beginning of the period, net	$	1,428,844	$	19,310	$	1,448,154	$	1,298,095	$	18,241	$	1,316,336
Claims incurred and CAE
Current year	$	7,218,666	$	47,395	$	7,266,061	$	4,976,210	$	40,907	$	5,017,117
Prior years	(194,364)		—		(194,364)		(163,586)		—		(163,586)
Total claims incurred and CAE, net	$	7,024,302	$	47,395	$	7,071,697	$	4,812,624	$	40,907	$	4,853,531
Claims paid and CAE
Current year	$	5,804,333	$	28,363	$	5,832,696	$	3,826,761	$	25,697	$	3,852,458
Prior years	812,431		13,610		826,041		751,873		12,907		764,780
Total claims and CAE paid, net	$	6,616,764	$	41,973	$	6,658,737	$	4,578,634	$	38,604	$	4,617,238

Benefits and CAE payable, end of period, net	$	1,836,382	$	24,732	$	1,861,114	$	1,532,085	$	20,544	$	1,552,629
Add: Reinsurance recoverable	62,053		—		62,053		19,547		—		19,547
Benefits and CAE payable, end of period	$	1,898,435	$	24,732	$	1,923,167	$	1,551,632	$	20,544	$	1,572,176

Amounts incurred related to prior periods vary from previously estimated liabilities as more claim information becomes available and claims are ultimately settled. The favorable prior period development recognized in the six months ended June 30, 2026 resulted primarily from lower than expected paid claims for 2025.