Affordable Care Act

9 Months Ended

Sep. 30, 2026

The Affordable Care Act established risk spreading premium stabilization programs as well as a minimum annual MLR and cost sharing reductions.

The Company's net receivables (payables) for each of the programs are as follows ($ in millions):


	September 30, 2026		December 31, 2025
Risk adjustment receivable	$	2,334	$	1,449
Risk adjustment payable	(1,353)		(2,087)
Minimum medical loss ratio	(32)		(294)
Cost sharing reduction receivable	7		13
Cost sharing reduction payable	(24)		(15)

In June 2026, CMS announced the final risk adjustment transfers for the 2025 benefit year. As a result of the announcement, the risk adjustment net payable was reduced by $541 million. After consideration of minimum MLR and other related impacts, the net pre-tax benefit recognized was $480 million in the nine months ended September 30, 2026