Quarterly report pursuant to Section 13 or 15(d)

Affordable Care Act

Affordable Care Act
9 Months Ended
Sep. 30, 2022
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.

The Company's net receivables (payables) for each of the programs are as follows ($ in millions):
September 30, 2022 December 31, 2021
Risk adjustment receivable $ 1,068  $ 522 
Risk adjustment payable (652) (536)
Minimum medical loss ratio (69) (196)
Cost sharing reduction receivable 10  69 
Cost sharing reduction payable (81) (42)
In June 2022, CMS announced the final risk adjustment transfers for the 2021 benefit year. As a result of the announcement, the Company increased its risk adjustment net receivables by $403 million from December 31, 2021. After consideration of minimum MLR and other related impacts, the net pre-tax benefit recognized was approximately $368 million in the nine months ended September 30, 2022