Centene Corporation Annual report pursuant to Section 13 and 15(d)

Medical Claims Liability (Tables)

12 Months Ended

Dec. 31, 2019

The following table summarizes the change in medical claims liability ($ in millions):



	Year Ended December 31,
	2019			2018			2017
Balance, January 1	$	6,831		$	4,286		$	3,929
Less: reinsurance recoverable	27			18			5
Balance, January 1, net	6,804			4,268			3,924
Acquisitions and purchase accounting adjustments	59			1,204			—
Less: acquired reinsurance recoverable	—			8			—
Incurred related to:
Current year	59,539			46,484			38,225
Prior years	(677		)	(427		)	(374		)
Total incurred	58,862			46,057			37,851
Paid related to:
Current year	52,453			41,161			34,196
Prior years	5,819			3,556			3,311
Total paid	58,272			44,717			37,507
Balance at December 31, net	7,453			6,804			4,268
Plus: reinsurance recoverable	20			27			18
Balance, December 31	$	7,473		$	6,831		$	4,286

Information is summarized as follows (in millions):



	December 31, 2019
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance		Total IBNR Plus Expected Development on Reported Claims		Cumulative Paid Claims
			Total IBNR Plus Expected Development on Reported Claims		Cumulative Paid Claims

2017	$	46,950	$	—	260.2
2018	50,944		88		281.7
2019	59,627		5,347		290.2

Incurred and paid claims development as of December 31, 2019 is as follows ($ in millions):



Cumulative Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
For the Years Ended December 31,
Claim Year	2017 (unaudited)		2018 (unaudited)		2019

2017	$	47,574	$	46,994	$	46,950
2018			51,572		50,944
2019					59,627
	Total incurred claims				$	157,521

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
For the Years Ended December 31,
Claim Year	2017 (unaudited)		2018 (unaudited)		2019

2017	$	42,205	$	46,767	$	46,904
2018			45,039		50,682
2019					52,482
	Total payment of incurred claims				$	150,068
	Medical claims liability, net of reinsurance				$	7,453