Quarterly report pursuant to Section 13 or 15(d)

Affordable Care Act (Tables)

v3.20.2
Affordable Care Act (Tables)
6 Months Ended
Jun. 30, 2020
Affordable Care Act [Abstract]  
Schedule of net receivables (payables) related to the Affordable Care Act Programs .
The Company's net receivables (payables) for each of the programs are as follows ($ in millions):
 
June 30, 2020
 
December 31, 2019
Risk adjustment receivable
$
410

 
$
245

Risk adjustment payable
(1,918
)
 
(1,239
)
Minimum medical loss ratio
(488
)
 
(367
)
Cost sharing reduction receivable
99

 
73

Cost sharing reduction payable
(1
)
 
(1
)

In July 2020, the Centers for Medicare and Medicaid Services (CMS) announced the final risk adjustment transfers for the 2019 benefit year. As a result of the announcement, the Company reduced its risk adjustment net payables by $94 million from December 31, 2019. After consideration of minimum MLR, estimated Risk Adjustment Data Validation (RADV) audit results, and other related impacts, the net pre-tax benefit recognized was approximately $63 million for the six months ended June 30, 2020. Final RADV results are expected to be announced by CMS in August 2020.