Quarterly report pursuant to Section 13 or 15(d)

Affordable Care Act

v3.21.2
Affordable Care Act
9 Months Ended
Sep. 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 $80 million in the second quarter of 2021.
The Company's net receivables (payables) for each of the programs are as follows ($ in millions):
September 30, 2021 December 31, 2020
Risk adjustment receivable $ 463  $ 340 
Risk adjustment payable (472) (1,224)
Minimum medical loss ratio (65) (238)
Cost sharing reduction receivable 92  101 
Cost sharing reduction payable (12) (1)