Annual report pursuant to Section 13 and 15(d)

Affordable Care Act

v3.19.3.a.u2
Affordable Care Act
 12 Months Ended
Dec. 31, 2019
Affordable Care Act [Abstract]  
Affordable Care Act Affordable Care Act

The Affordable Care Act established risk spreading premium stabilization programs as well as minimum annual MLR and cost sharing reductions.

On June 28, 2019, the Centers for Medicare and Medicaid Services announced the final risk adjustment transfers for the 2018 benefit year. As a result of the announcement, the Company reduced its risk adjustment net payables by $238 million from December 31, 2018. After consideration of minimum MLR, Risk Adjustment Data Validation audit results, and other related impacts, the net pre-tax benefit recognized was approximately $131 million recorded in the second quarter of 2019.

The Company's receivables (payables) for each of these programs are as follows ($ in millions):
 
December 31, 2019
 
December 31, 2018
Risk adjustment receivable
$
245

 
$
91

Risk adjustment payable
(1,239
)
 
(1,019
)
Minimum medical loss ratio
(367
)
 
(265
)
Cost sharing reduction receivable
73

 
57

Cost sharing reduction payable
(1
)
 
(107
)