Quarterly report pursuant to Section 13 or 15(d)

Affordable Care Act

v3.8.0.1
Affordable Care Act
3 Months Ended
Mar. 31, 2018
Affordable Care Act [Abstract]  
Affordable Care Act
Affordable Care Act

The Affordable Care Act (ACA) established risk spreading premium stabilization programs effective January 1, 2014. These programs, commonly referred to as the “three Rs,” include a permanent risk adjustment program, a transitional reinsurance program, and a temporary risk corridor program. Additionally, the ACA established a minimum annual medical loss ratio (MLR) and cost sharing reductions. Each of the three R programs are taken into consideration to determine if the Company’s estimated annual medical costs are less than the minimum loss ratio and require an adjustment to Premium revenue to meet the minimum MLR.



The Company's net receivables (payables) for each of these programs are as follows ($ in millions):
 
March 31, 2018
 
December 31, 2017
Risk adjustment
$
(1,131
)
 
$
(677
)
Reinsurance
1

 
15

Risk corridor
5

 
6

Minimum MLR
(44
)
 
(22
)
Cost sharing reductions
(71
)
 
(96
)