Affordable Care Act
|6 Months Ended|
Jun. 30, 2021
|Affordable Care Act [Abstract]|
|Affordable Care Act||Affordable Care Act
The Affordable Care Act established risk spreading premium stabilization programs as well as a minimum annual medical loss ratio (MLR) and cost sharing reductions.
In June 2021, the Centers for Medicare and Medicaid Services (CMS) announced the final risk adjustment transfers for the 2020 benefit year. As a result of the announcement, the Company increased its risk adjustment net payables by $83 million from December 31, 2020. After consideration of minimum MLR and other related impacts, the net pre-tax expense recognized was approximately $80 million for the six months ended June 30, 2021.
The Company's net receivables (payables) for each of the programs are as follows ($ in millions):