Document And Entity Information
Document And Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 22, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001156039 | |
Entity File Number | 001-16751 | |
Entity Registrant Name | ANTHEM, INC. | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-2145715 | |
Entity Address, Address Line One | 220 Virginia Avenue | |
Entity Address, City or Town | Indianapolis | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46204 | |
City Area Code | 800 | |
Local Phone Number | 331-1476 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | ANTM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 252,116,097 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 5,345 | $ 4,937 |
Fixed maturity securities (amortized cost of $20,211 and $19,021; allowance for credit losses of $51 and $0) | 19,881 | 19,676 |
Equity securities | 570 | 1,009 |
Premium receivables | 5,786 | 5,014 |
Self-funded receivables | 2,613 | 2,570 |
Other receivables | 2,926 | 2,807 |
Other current assets | 4,135 | 3,020 |
Total current assets | 41,256 | 39,033 |
Long-term investments: | ||
Fixed maturity securities (amortized cost of $489 and $487; allowance for credit losses of $0 and $0) | 505 | 505 |
Other invested assets | 4,181 | 4,258 |
Property and equipment, net | 3,350 | 3,133 |
Goodwill | 21,661 | 20,500 |
Other intangible assets | 9,613 | 8,674 |
Other noncurrent assets | 1,833 | 1,350 |
Total assets | 82,399 | 77,453 |
Policy Liabilities | ||
Medical claims payable | 9,902 | 8,842 |
Other policyholder liabilities | 3,252 | 3,050 |
Unearned income | 947 | 1,017 |
Accounts payable and accrued expenses | 5,058 | 4,198 |
Short-term borrowings | 1,075 | 700 |
Current portion of long-term debt | 1,603 | 1,598 |
Other current liabilities | 5,202 | 4,127 |
Total current liabilities | 27,039 | 23,532 |
Long-term debt, less current portion | 19,005 | 17,787 |
Reserves for future policy benefits, noncurrent | 754 | 759 |
Deferred tax liabilities, net | 2,213 | 2,227 |
Other noncurrent liabilities | 1,695 | 1,420 |
Total liabilities | 50,706 | 45,725 |
Commitment and contingencies – Note 11 | ||
Shareholders' equity | ||
Preferred stock, without par value, shares authorized – 100,000,000; shares issued and outstanding – none | 0 | 0 |
Common stock, par value $0.01, shares authorized – 900,000,000; shares issued and outstanding – 252,020,028 and 252,922,161 | 3 | 3 |
Additional paid-in capital | 9,338 | 9,448 |
Retained earnings | 23,360 | 22,573 |
Accumulated other comprehensive loss | (1,008) | (296) |
Total shareholders' equity | 31,693 | 31,728 |
Total liabilities and shareholders' equity | $ 82,399 | $ 77,453 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Available-for-sale fixed maturity securities investments, current, amortized cost | $ 20,211 | $ 19,021 |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 51 | 0 |
Available-for-sale fixed maturity securities investments, long-term, amortized cost | $ 489 | $ 487 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 252,020,028 | 252,922,161 |
Common stock, shares outstanding | 252,020,028 | 252,922,161 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Premiums | $ 25,517 | $ 22,843 |
Product Revenue | 2,344 | 0 |
Administrative fees and other revenue | 1,587 | 1,545 |
Total operating revenue | 29,448 | 24,388 |
Net investment income | 254 | 210 |
Net realized (losses) gains on financial instruments | (24) | 78 |
Other-than-temporary impairment losses on investments: | ||
Total other-than-temporary impairment losses on investments | (101) | (13) |
Portion of other-than-temporary impairment losses recognized in other comprehensive income | 44 | 3 |
Other-than-temporary impairment losses recognized in income | (57) | (10) |
Total revenues | 29,621 | 24,666 |
Expenses | ||
Benefit expense | 21,489 | 19,282 |
Cost of products sold | 1,984 | 0 |
Selling, general and administrative expense | 3,781 | 3,166 |
Interest expense | 194 | 187 |
Amortization of other intangible assets | 83 | 87 |
Loss (gain) on extinguishment of debt | 1 | (1) |
Total expenses | 27,532 | 22,721 |
Income before income tax expense | 2,089 | 1,945 |
Income tax expense | 566 | 394 |
Net income | $ 1,523 | $ 1,551 |
Net income per share | ||
Basic net income per share | $ 6.03 | $ 6.03 |
Diluted net income per share | 5.94 | 5.91 |
Dividends per share | $ 0.95 | $ 0.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,523 | $ 1,551 |
Other comprehensive (loss) income, net of tax: | ||
Change in net unrealized losses/gains on investments | (689) | 357 |
Change in non-credit component of other-than-temporary impairment losses on investments | (32) | 0 |
Change in net unrealized gains/losses on cash flow hedges | 3 | 3 |
Change in net periodic pension and postretirement costs | 7 | 3 |
Foreign currency translation adjustments | (1) | 0 |
Other comprehensive (loss) income | (712) | 363 |
Total comprehensive income | $ 811 | $ 1,914 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 1,523 | $ 1,551 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized losses (gains) on financial instruments | 24 | (78) |
Depreciation and amortization | 270 | 289 |
Deferred income taxes | 57 | 55 |
Share-based compensation | 67 | 70 |
Changes in operating assets and liabilities: | ||
Receivables, net | (639) | (753) |
Other invested assets | 63 | (21) |
Other assets | (525) | (125) |
Policy liabilities | 692 | 791 |
Unearned income | (109) | 96 |
Accounts Payable and Other Operating Liabilities | 588 | (354) |
Income taxes | 491 | 115 |
Other, net | 13 | (6) |
Net cash provided by operating activities | 2,515 | 1,630 |
Investing activities | ||
Payments to acquire investments | 3,896 | 6,069 |
Proceeds from sale of investments | 2,728 | 5,236 |
Maturities, calls and redemptions from investments | 597 | 393 |
Purchases of subsidiaries, net of cash acquired | (1,908) | 0 |
Purchases of property and equipment | (204) | (234) |
Other, net | (101) | 22 |
Net cash used in investing activities | (2,784) | (652) |
Financing activities | ||
Net proceeds from commercial paper borrowings | 905 | 178 |
Proceeds from long-term borrowings | 300 | 2 |
Repayments of long-term borrowings | (52) | (63) |
Proceeds from short-term borrowings | 1,075 | 2,710 |
Repayments of short-term borrowings | (700) | (2,760) |
Repurchase and retirement of common stock | (529) | (294) |
Cash dividends | (240) | (206) |
Proceeds from issuance of common stock under employee stock plans | 44 | 76 |
Taxes paid through withholding of common stock under employee stock plans | (107) | (78) |
Other, net | (17) | 6 |
Net cash provided by (used in) financing activities | 679 | (429) |
Effect of foreign exchange rates on cash and cash equivalents | (2) | (1) |
Change in cash and cash equivalents | 408 | 548 |
Cash and cash equivalents at beginning of period | 4,937 | 3,934 |
Cash and cash equivalents at end of period | $ 5,345 | $ 4,482 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Adjusted beginning balance | $ 28,567 | $ 9,536 | $ 20,014 | $ (986) | |
Balance at Dec. 31, 2018 | 28,541 | $ 3 | 9,536 | 19,988 | (986) |
Balance (in shares) at Dec. 31, 2018 | 257.4 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,551 | 1,551 | |||
Other comprehensive income (loss) | 363 | 363 | |||
Repurchase and retirement of common stock, value | $ (294) | (71) | (223) | ||
Repurchase and retirement of common stock, shares | (1.1) | (1.1) | |||
Dividends and dividend equivalents | $ (206) | (206) | |||
Issuance of common stock under employee stock plans, net of related tax benefits, Shares | 1.1 | ||||
Issuance of common stock under employee stock plans, net of related tax benefits | 69 | 69 | |||
Convertible debenture repurchases and conversions | (52) | (52) | |||
Balance at Mar. 31, 2019 | 29,998 | $ 3 | 9,482 | 21,136 | (623) |
Balance (in shares) at Mar. 31, 2019 | 257.4 | ||||
Cumulative effect of new accounting principle in period of adoption | 26 | 26 | |||
Adjusted beginning balance | 31,693 | 9,448 | 22,538 | (296) | |
Balance at Dec. 31, 2019 | 31,728 | $ 3 | 9,448 | 22,573 | (296) |
Balance (in shares) at Dec. 31, 2019 | 252.9 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,523 | 1,523 | |||
Other comprehensive income (loss) | (712) | (712) | |||
Repurchase and retirement of common stock, value | $ (529) | (71) | (458) | ||
Repurchase and retirement of common stock, shares | (1.9) | (1.9) | |||
Dividends and dividend equivalents | $ (243) | (243) | |||
Issuance of common stock under employee stock plans, net of related tax benefits, Shares | 1 | ||||
Issuance of common stock under employee stock plans, net of related tax benefits | 3 | 3 | |||
Convertible debenture repurchases and conversions | (42) | (42) | |||
Balance at Mar. 31, 2020 | 31,693 | $ 3 | $ 9,338 | 23,360 | $ (1,008) |
Balance (in shares) at Mar. 31, 2020 | 252 | ||||
Cumulative effect of new accounting principle in period of adoption | $ (35) | $ (35) |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization References to the terms “we,” “our,” “us” or “Anthem” used throughout these Notes to Consolidated Financial Statements refer to Anthem, Inc., an Indiana corporation, and unless the context otherwise requires, its direct and indirect subsidiaries. References to the “states” include the District of Columbia, unless the context otherwise requires. We are one of the largest health benefits companies in the United States in terms of medical membership, serving approximately 42 million medical members through our affiliated health plans as of March 31, 2020 . We offer a broad spectrum of network-based managed care plans to Large Group, Small Group, Individual, Medicaid and Medicare markets. Our managed care plans include: Preferred Provider Organizations, or PPOs; Health Maintenance Organizations, or HMOs; Point-of-Service plans; traditional indemnity plans and other hybrid plans, including Consumer-Driven Health Plans; and hospital only and limited benefit products. In addition, we provide a broad array of managed care services to self-funded customers, including claims processing, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs and other administrative services. We provide an array of specialty and other insurance products and services such as pharmacy benefits management, or PBM, dental, vision, life and disability insurance benefits, radiology benefit management and analytics-driven personal healthcare. We also provide services to the federal government in connection with our Federal Health Products & Services business, which administers the Federal Employees Health Benefits, or FEHB, Program. We are an independent licensee of the Blue Cross and Blue Shield Association, or BCBSA, an association of independent health benefit plans. We serve our members as the Blue Cross licensee for California and as the Blue Cross and Blue Shield, or BCBS, licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (in the New York City metropolitan area and upstate New York), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.) and Wisconsin. In a majority of these service areas, we do business as Anthem Blue Cross, Anthem Blue Cross and Blue Shield, and Empire Blue Cross Blue Shield or Empire Blue Cross. We also conduct business through arrangements with other BCBS licensees as well as other strategic partners. Through our subsidiaries, we also serve customers in numerous states across the country as AIM Specialty Health, Amerigroup, Aspire Health, Beacon Health, CareMore, Freedom Health, HealthLink, HealthSun, Optimum HealthCare, Simply Healthcare, and/or Unicare. Also, in the second quarter of 2019, we began providing PBM services through our IngenioRx subsidiary. We are licensed to conduct insurance operations in all 50 |
Basis Of Presentation and Signi
Basis Of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our 2019 Annual Report on Form 10-K, unless the information contained in those disclosures materially changed or is required by GAAP. Certain prior year amounts have been reclassified to conform to the current year presentation. For additional information on prior year reclassifications, see Note 15, “Segment Information.” In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three months ended March 31, 2020 and 2019 have been recorded. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020 , or any other period. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2019 included in our 2019 Annual Report on Form 10-K. Certain of our subsidiaries operate outside of the United States and have functional currencies other than the U.S. dollar, or USD. We translate the assets and liabilities of those subsidiaries to USD using the exchange rate in effect at the end of the period. We translate the revenues and expenses of those subsidiaries to USD using the average exchange rates in effect during the period. The net effect of these translation adjustments is included in “Foreign currency translation adjustments” in our consolidated statements of comprehensive income. Cash and Cash Equivalents: We control a number of bank accounts that are used exclusively to hold customer funds for the administration of customer benefits and we have cash and cash equivalents on deposit to meet certain regulatory requirements. These amounts totaled $221 and $215 at March 31, 2020 and December 31, 2019 , respectively, and are included in the cash and cash equivalents line on our consolidated balance sheets. Investments: Prior to 2020, our fixed maturities were evaluated for other-than-temporary impairment where credit related impairments were presented within the other-than-temporary impairment losses recognized in our consolidated statements of income with an adjustment to the security’s amortized cost basis. Effective January 1, 2020, if a fixed maturity security is in an unrealized loss position and we have the intent to sell the fixed maturity security, or it is more likely than not that we will have to sell the fixed maturity security before recovery of its amortized cost basis, we write down the fixed maturity security’s cost basis to fair value and record an impairment loss in our consolidated statements of income. For impaired fixed maturity securities that we do not intend to sell or if it is more likely than not that we will not have to sell such securities, but we expect that we will not fully recover the amortized cost basis, we recognize the credit component of the impairment as an allowance for credit loss in our consolidated balance sheets and record an impairment loss in our consolidated statements of income. The non-credit component of the impairment is recognized in accumulated other comprehensive loss. Furthermore, unrealized losses entirely caused by non-credit related factors related to fixed maturity securities for which we expect to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive loss. The credit component of an impairment is determined primarily by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting our best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of purchase. For mortgage-backed and asset-backed securities, cash flow estimates are based on assumptions regarding the underlying collateral, including prepayment speeds, vintage, type of underlying asset, geographic concentrations, default rates, recoveries and changes in value. For all other securities, cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings and estimates regarding timing and amount of recoveries associated with a default. For asset-backed securities included in fixed maturity securities, we recognize income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities. Such adjustments are reported within net investment income. In accordance with the Financial Accounting Standards Board, or FASB guidance, the changes in fair value of our marketable equity securities are recognized in our results of operations within net realized gains and losses on financial instruments. We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management. The cash surrender value of the corporate-owned life insurance policies is reported under the caption “Other invested assets” in our consolidated balance sheets. We use the equity method of accounting for investments in companies in which our ownership interest enables us to influence the operating or financial decisions of the investee company. Our proportionate share of equity in net income of these unconsolidated affiliates is reported within net investment income. The equity method investments are reported under the caption “Other invested assets” in our consolidated balance sheets. Investment income is recorded when earned. All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. Under FASB guidance related to accounting for transfers and servicing of financial assets and extinguishments of liabilities, we recognize the collateral as an asset, which is reported under the caption “Other current assets” in our consolidated balance sheets, and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported under the caption “Other current liabilities” in our consolidated balance sheets. The securities on loan are reported in the applicable investment category on our consolidated balance sheets. Unrealized gains or losses on securities lending collateral are included in accumulated other comprehensive loss as a separate component of shareholders’ equity. The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions. To the extent the loaned securities’ value appreciates faster or depreciates slower than the value of the collateral pledged, we are exposed to the risk of the shortfall. As a primary mitigating mechanism, the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall, if any, is collected accordingly. Secondarily, the collateral level is set at 102% of the value of the loaned securities, which provides a cushion before any shortfall arises. The investment of the cash collateral is subject to market risk, which is managed by limiting the investments to higher quality and shorter duration instruments. Receivables: Premium receivables include the uncollected amounts from insured groups, individuals and government programs. Premium receivables are reported net of an allowance for doubtful accounts of $234 and $237 at March 31, 2020 and December 31, 2019, respectively. Self-funded receivables include administrative fees, claims and other amounts due from self-funded customers. Self-funded receivables are reported net of an allowance for doubtful accounts of $55 and $46 at March 31, 2020 and 2019, respectively. The allowance for doubtful accounts is based on historical collection trends, future forecasts and our judgment regarding the ability to collect specific accounts. Other receivables include pharmacy rebates, provider advances, claims recoveries, reinsurance receivables, proceeds due from brokers on investment trades, other government receivables and other miscellaneous amounts due to us. These receivables are reported net of an allowance for doubtful accounts of $282 and $242 at March 31, 2020 and December 31, 2019, respectively, which is based on historical collection trends, future forecasts and our judgment regarding the ability to collect specific accounts. Revenue Recognition: For our non-fully-insured contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheet at March 31, 2020 . For the three months ended March 31, 2020 , revenue recognized from performance obligations related to prior periods, such as due to changes in transaction price, was not material. For contracts that have an original expected duration of greater than one year, revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material. Recently Adopted Accounting Guidance: In November 2019, the FASB issued Accounting Standards Update No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . In May 2019, the FASB issued Accounting Standards Update No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief . In April 2019, the FASB issued Accounting Standards Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . In November 2018, the FASB issued Accounting Standards Update No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . These updates provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost and provide additional clarification and implementation guidance on certain aspects of the previously issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, and have the same effective date and transition requirements as ASU 2016-13. ASU 2016-13 introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities and provides for additional disclosure requirements. ASU 2016-13 requires a cumulative-effect adjustment to the opening balance of retained earnings on the statement of financial position at the date of adoption and a prospective transition approach for debt securities for which an other-than-temporary impairment had been recognized before the adoption date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the date of adoption. We adopted ASU 2016-13 on January 1, 2020, and recognized a cumulative-effect adjustment of $35 to our opening retained earnings for credit related allowances on receivables. The adoption did not have an impact on our consolidated statements of income or cash flows. In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , or ASU 2018-15. The amendments in ASU 2018-15 require implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customer in a software licensing arrangement under the internal-use software guidance. The amendments also require an entity to disclose the nature of its hosting arrangements and adhere to certain presentation requirements in its balance sheet, income statement and statement of cash flows. We adopted ASU 2018-15 on January 1, 2020 using a prospective approach for all implementation costs incurred after the date of adoption, and the adoption did not have an impact on our consolidated financial position, results of operations or cash flows. In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13. The amendments in ASU 2018-13 eliminate, add, and modify certain disclosure requirements for fair value measurements. The amendments are effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for either the entirety of ASU 2018-13 or only the provisions that eliminate or modify disclosure requirements. We early adopted the provisions that eliminate and modify disclosure requirements, on a retrospective basis, effective in our 2018 Annual Report on Form 10-K. We adopted the new disclosure requirements on January 1, 2020, on a prospective basis. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , or ASU 2017-04. This update removes Step 2 of the goodwill impairment test under current guidance, which required a hypothetical purchase price allocation. The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. We adopted ASU 2017-04 on January 1, 2020, and the adoption did not have an impact on our consolidated financial position, results of operations or cash flows. Recent Accounting Guidance Not Yet Adopted: In March 2020, the FASB issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , or ASU 2020-04. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate, or LIBOR, or another reference rate expected to be discontinued because of the reference rate reform. The provisions must be applied at a Topic, Subtopic, or Industry Subtopic level for all transactions other than derivatives, which may be applied at a hedging relationship level. The provisions within ASU 2020-04 are available until December 31, 2022, when the reference rate replacement activity is expected to have been completed. We are currently evaluating the provisions within ASU 2020-04. In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12. The amendments in ASU 2019-12 remove certain exceptions to the general principles in ASC Topic 740. The amendments also clarify and amend existing guidance to improve consistent application. The amendments are effective for our annual reporting periods beginning after December 15, 2020, with early adoption permitted. The transition method (retrospective, modified retrospective, or prospective basis) related to the amendments depends on the applicable guidance, and all amendments for which there is no transition guidance specified are to be applied on a prospective basis. We are currently evaluating the effects the adoption of ASU 2019-12 will have on our consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-14, Compensation—Retirement Benefits - Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans , or ASU 2018-14. The amendments in ASU 2018-14 eliminate, add, and modify certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments are effective for our annual reporting periods beginning after December 15, 2020, with early adoption permitted. The guidance is to be applied on a retrospective basis to all periods presented. We are currently evaluating the effects the adoption of ASU 2018-14 will have on our disclosures. In August 2018, the FASB issued Accounting Standards Update No. 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, or ASU 2018-12. The amendments in ASU 2018-12 make changes to a variety of areas to simplify or improve the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. The amendments require insurers to annually review the assumptions they make about their policyholders and update the liabilities for future policy benefits if the assumptions change. The amendments also simplify the amortization of deferred contract acquisition costs and add new disclosure requirements about the assumptions insurers use to measure their liabilities and how they may affect future cash flows. The amendments in ASU 2018-12 will be effective for our interim and annual reporting periods beginning after December 15, 2021. The amendments related to the liability for future policy benefits for traditional and limited-payment contracts and deferred acquisition costs are to be applied to contracts in force as of the beginning of the earliest period presented, with an option to apply such amendments retrospectively with a cumulative-effect adjustment to the opening balance of retained earnings as of the earliest period presented. The amendments for market risk benefits are to be applied retrospectively. We are currently evaluating the effects the adoption of ASU 2018-12 will have on our consolidated financial position, results of operations, cash flows, and related disclosures. There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2019 Annual Report on Form 10-K that had, or are expected to have, a material impact on our consolidated financial position, results of operations or cash flows. |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisition Beacon Health Options, Inc. On February 28, 2020, we completed our acquisition of Beacon Health Options, Inc., or Beacon, the largest independently held behavioral health organization in the country. At the time of acquisition, Beacon served more than thirty-four million individuals across all fifty states. This acquisition aligns with our strategy to diversify into health services and deliver both integrated solutions and care delivery models that personalize care for people with complex and chronic conditions. In accordance with FASB accounting guidance for business combinations, the consideration transferred was allocated to the preliminary fair value of Beacon’s assets acquired and liabilities assumed, including identifiable intangible assets. The excess of the consideration transferred over the preliminary fair value of net assets acquired resulted in preliminary goodwill of $ 1,049 at March 31, 2020, all of which was allocated to our Other segment. Preliminary goodwill recognized from the acquisition of Beacon primarily relates to the future economic benefits arising from the assets acquired and is consistent with our stated intentions and strategy. Any additional payments or receipts of cash resulting from contractual purchase price adjustments or any subsequent adjustments made to the assets acquired or liabilities assumed during the measurement period will be recorded as an adjustment to goodwill. The preliminary fair value of the net assets acquired from Beacon includes $752 of other intangible assets at March 31, 2020, which primarily consist of finite-lived customer relationships with amortization periods ranging from 9 to 21 years. The results of operations of Beacon are included in our consolidated financial statements within our Other segment for the period following February 28, 2020. The pro forma effects of this acquisition for prior periods were not material to our consolidated results of operations. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments Fixed Maturity Securities We evaluate our available-for-sale fixed maturity securities for declines based on qualitative and quantitative factors. Our fixed maturity securities have been negatively impacted by the significant market volatility that began in March 2020 due to the COVID-19 global health pandemic, or COVID-19 pandemic, and other market related changes. Declines in fair value have increased the potential for material credit losses. We have established an allowance for credit loss and recorded credit loss expense as a reflection of our expected impairment losses. We continue to review our investment portfolios under our impairment review policy. Given the inherent uncertainty of changes in market conditions and the significant judgments involved, there is a continuing risk that declines in fair value may occur and additional material impairment losses on investments may be recorded in future periods. A summary of current and long-term fixed maturity securities, available-for-sale, at March 31, 2020 and December 31, 2019 is as follows: Cost or Non-Credit Component of Impairment Recognized in Other Comprehensive Loss Gross Gross Unrealized Losses Allowance For Credit Losses Estimated Less than 12 Months 12 Months or Greater March 31, 2020 Fixed maturity securities: United States Government securities $ 450 $ 24 $ — $ — $ — $ 474 $ — Government sponsored securities 369 5 (48 ) — — 326 — States, municipalities and political subdivisions 4,768 233 (14 ) — — 4,987 — Corporate securities 9,609 148 (450 ) (44 ) (51 ) 9,212 (44 ) Residential mortgage-backed securities 3,731 93 (95 ) (7 ) — 3,722 — Commercial mortgage-backed securities 81 1 (3 ) (1 ) — 78 — Other securities 1,692 6 (97 ) (14 ) — 1,587 — Total fixed maturity securities $ 20,700 $ 510 $ (707 ) $ (66 ) $ (51 ) $ 20,386 $ (44 ) December 31, 2019 Fixed maturity securities: United States Government securities $ 524 $ 4 $ (3 ) $ — $ — $ 525 $ — Government sponsored securities 136 5 — — — 141 — States, municipalities and political subdivisions 4,592 262 (3 ) — — 4,851 — Corporate securities 8,870 339 (9 ) (15 ) — 9,185 (3 ) Residential mortgage-backed securities 3,654 87 (6 ) (3 ) — 3,732 — Commercial mortgage-backed securities 84 2 — — — 86 — Other securities 1,648 21 (3 ) (5 ) — 1,661 — Total fixed maturity securities $ 19,508 $ 720 $ (24 ) $ (23 ) $ — $ 20,181 $ (3 ) For fixed maturity securities in an unrealized loss position at March 31, 2020 and December 31, 2019 , the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position: Less than 12 Months 12 Months or Greater (Securities are whole amounts) Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss March 31, 2020 Fixed maturity securities: United States Government securities 1 $ — $ — — $ — $ — Government sponsored securities 278 224 (48 ) 1 — — States, municipalities and political subdivisions 239 509 (14 ) 3 4 — Corporate securities 2,773 5,003 (450 ) 170 176 (44 ) Residential mortgage-backed securities 603 1,182 (95 ) 63 57 (7 ) Commercial mortgage-backed securities 14 29 (3 ) 3 6 (1 ) Other securities 520 1,175 (97 ) 58 142 (14 ) Total fixed maturity securities 4,428 $ 8,122 $ (707 ) 298 $ 385 $ (66 ) December 31, 2019 Fixed maturity securities: United States Government securities 27 $ 250 $ (3 ) 2 $ 1 $ — Government sponsored securities 14 12 — 3 1 — States, municipalities and political subdivisions 114 306 (3 ) 14 11 — Corporate securities 386 558 (9 ) 224 286 (15 ) Residential mortgage-backed securities 321 635 (6 ) 189 237 (3 ) Commercial mortgage-backed securities 1 3 — 4 8 — Other securities 166 415 (3 ) 113 358 (5 ) Total fixed maturity securities 1,029 $ 2,179 $ (24 ) 549 $ 902 $ (23 ) Below are discussions by security type for unrealized losses as of March 31, 2020: United States Government securities: Unrealized losses on government sponsored securities have not been recognized into income because management does not intend to sell and it is likely that management will not be required to sell these securities prior to their anticipated recovery. The decline in fair value is largely due to changes in interest rates and other market conditions. We have evaluated the credit ratings of the securities and have determined that no allowance is necessary. The fair value is expected to recover as the securities approach maturity. Government sponsored securities: There were no material unrealized losses on investments in government sponsored securities. We have no intent to sell these investments, and it is more likely than not that we will not be required to sell the investments before recovery of their amortized cost bases. States, municipalities and political subdivisions: Unrealized losses on securities of states, municipalities and political subdivisions have not been recognized into income because management does not intend to sell, and it is likely that management will not be required to sell these securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. We have evaluated the credit ratings of the securities and have determined that no allowance is necessary. The fair value is expected to recover as the securities approach maturity. Corporate securities: An allowance for credit losses on certain energy-related fixed maturity corporate securities has been determined based on qualitative and quantitative factors including credit rating, default, industry condition and known information of the issuer along with other available market data. With multiple risk factors present, these securities were reviewed for expected future cash flow to determine the portion of unrealized losses that were credit related and to record an allowance for credit losses. No allowance for credit loss was required for the remaining corporate fixed maturity securities at March 31, 2020. Unrealized losses on the remaining corporate securities have not been recognized into income because management does not intend to sell, and it is likely that management will not be required to sell these securities prior to their anticipated recovery, and the decline in fair value is largely due to current market conditions relating to the COVID-19 pandemic and tensions within the energy sector. We have evaluated each corporate security’s credit rating as well as industry risk factors associated with the securities. At this time, no allowance has been deemed necessary. The issuers continue to make timely principal and interest payments on the bonds. The fair value of these securities is expected to recover as they approach maturity. Residential mortgage-backed securities: Unrealized losses on residential mortgage-backed securities have not been recognized into income because management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. We have evaluated the securities for any change in credit rating and have determined that no allowance is necessary. The fair value is expected to recover as the securities approach maturity. Commercial mortgage-backed securities: There were no material unrealized losses on investments in commercial mortgage-backed securities. We have no intent to sell these investments, and it is more likely than not that we will not be required to sell the investments before recovery of their amortized cost bases. Other securities: Unrealized losses on other securities have not been recognized into income because management does not intend to sell, and it is likely that management will not be required to sell these securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. Other securities largely consists of asset-backed securities. We have evaluated these securities for any change in credit rating and have determined that no allowance is necessary. The fair value is expected to recover as the securities approach maturity. The table below presents a roll-forward by major security type of the allowance for credit losses on fixed maturity securities available-for-sale held at period end for the three months ended March 31, 2020: Corporate Securities Allowance for credit losses: Beginning balance $ — Additions for securities for which no previous expected credit losses were recognized 51 Total allowance for credit losses $ 51 The amortized cost and fair value of fixed maturity securities at March 31, 2020 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations. Amortized Cost Estimated Fair Value Due in one year or less $ 520 $ 511 Due after one year through five years 5,730 5,583 Due after five years through ten years 6,035 5,882 Due after ten years 4,603 4,610 Mortgage-backed securities 3,812 3,800 Total fixed maturity securities $ 20,700 $ 20,386 Proceeds from sales, maturities, calls or redemptions of fixed maturity securities and the related gross realized gains and gross realized losses for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended 2020 2019 Proceeds $ 1,931 $ 1,468 Gross realized gains 43 18 Gross realized losses (20 ) (17 ) In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited to: (i) changes in the investment environment; (ii) expectation that the fair value could deteriorate further; (iii) desire to reduce exposure to an issuer or an industry; (iv) changes in credit quality; or (v) changes in expected cash flow. All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. Equity Securities A summary of marketable equity securities at March 31, 2020 and December 31, 2019 is as follows: March 31, 2020 December 31, 2019 Equity securities: Exchange traded funds $ 245 $ 44 Fixed maturity mutual funds 211 643 Common equity securities 32 237 Private equity securities 82 85 Total $ 570 $ 1,009 The gains and losses related to equity securities for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31 2020 2019 Net realized (losses) gains recognized on equity securities $ (50 ) $ 79 Less: Net realized gains recognized on equity securities sold during the period (18 ) (21 ) Unrealized (losses) gains recognized on equity securities still held at March 31 $ (68 ) $ 58 Other Invested Assets Other invested assets include primarily our investments in limited partnerships, joint ventures and other non-controlled corporations, as well as the cash surrender value of corporate-owned life insurance policies. Investments in limited partnerships, joint ventures and other non-controlled corporations are carried at our share in the entities’ undistributed earnings, which approximates fair value. Financial information for certain of these investments are reported on a one or three month lag due to the timing of when we receive financial information from the companies. Given the recent market volatility, there is a risk that the value of some of these investments may decline in future periods. Investment Income At March 31, 2020 and December 31, 2019, accrued investment income totaled $166 and $173 , respectively. We recognize accrued investment income under the caption “Other receivables” on our consolidated balance sheets. Securities Lending Programs We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. The fair value of the collateral received at the time of the transactions amounted to $427 and $351 at March 31, 2020 and December 31, 2019 , respectively. The value of the collateral represented 103% of the market value of the securities on loan at each of March 31, 2020 and December 31, 2019 . We recognize the collateral as an asset under the caption “Other current assets” in our consolidated balance sheets, and we recognize a corresponding liability for the obligation to return the collateral to the borrower under the caption “Other current liabilities.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets. The remaining contractual maturity of our securities lending agreements at March 31, 2020 is as follows: Overnight and Continuous Securities lending transactions Cash $ 354 United States Government securities 69 Other securities 4 Total $ 427 The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions. To the extent the loaned securities’ value appreciates faster or depreciates slower than the value of the collateral pledged, we are exposed to the risk of the shortfall. As a primary mitigating mechanism, the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall, if any, is collected accordingly. Secondarily, the minimum collateral level is set at 102% |
Derivative Financial Instrument
Derivative Financial Instruments Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We primarily invest in the following types of derivative financial instruments: interest rate swaps, futures, forward contracts, put and call options, swaptions, embedded derivatives and warrants. We also enter into master netting agreements, which reduce credit risk by permitting net settlement of transactions. We have entered into various interest rate swap contracts to convert a portion of our interest rate exposure on our long-term debt from fixed rates to floating rates. The floating rates payable on all of our fair value hedges are benchmarked to LIBOR. Any amounts recognized for changes in fair value of these derivatives are included in the captions “Other current or noncurrent assets” or “Other current or noncurrent liabilities” in our consolidated balance sheet. Prior to 2020, we entered into a series of forward starting pay fixed interest rate swaps with the objective of reducing the variability of cash flows in the interest payments on anticipated future financings. The unrecognized loss for all expired and terminated cash flow hedges included in accumulated other comprehensive loss, net of tax, was $259 and $ 262 at March 31, 2020 and December 31, 2019 , respectively. For additional information relating to the fair value of our derivative assets and liabilities, see Note 6, “Fair Value,” of this Form 10-Q. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Level inputs, as defined by FASB guidance for fair value measurements and disclosures, are as follows: Level Input Input Definition Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The following methods, assumptions and inputs were used to determine the fair value of each class of the following assets and liabilities recorded at fair value in our consolidated balance sheets: Cash equivalents: Cash equivalents primarily consist of highly rated money market funds with maturities of three months or less and are purchased daily at par value with specified yield rates. Due to the high ratings and short-term nature of the funds, we designate all cash equivalents as Level I. Fixed maturity securities, available-for-sale: Fair values of available-for-sale fixed maturity securities are based on quoted market prices, where available. These fair values are obtained primarily from third-party pricing services, which generally use Level I or Level II inputs for the determination of fair value to facilitate fair value measurements and disclosures. Level II securities primarily include corporate securities, securities from states, municipalities and political subdivisions, mortgage-backed securities, United States Government securities and certain other asset-backed securities. For securities not actively traded, the pricing services may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. We have controls in place to review the pricing services’ qualifications and procedures used to determine fair values. In addition, we periodically review the pricing services’ pricing methodologies, data sources and pricing inputs to ensure the fair values obtained are reasonable. Inputs that are often used in the valuation methodologies include, but are not limited to, broker quotes, benchmark yields, credit spreads, default rates and prepayment speeds. We also have certain fixed maturity securities, primarily corporate debt securities, which are designated Level III securities. For these securities, the valuation methodologies may incorporate broker quotes or discounted cash flow analyses using assumptions for inputs such as expected cash flows, benchmark yields, credit spreads, default rates and prepayment speeds that are not observable in the markets. Equity securities: Fair values of equity securities are generally designated as Level I and are based on quoted market prices. For certain equity securities, quoted market prices for the identical security are not always available, and the fair value is estimated by reference to similar securities for which quoted prices are available. These securities are designated Level II. We also have certain equity securities, including private equity securities, for which the fair value is estimated based on each security’s current condition and future cash flow projections. Such securities are designated Level III. The fair values of these private equity securities are generally based on either broker quotes or discounted cash flow projections using assumptions for inputs such as the weighted-average cost of capital, long-term revenue growth rates and earnings before interest, taxes, depreciation and amortization, and/or revenue multiples that are not observable in the markets. Securities lending collateral: Fair values of securities lending collateral are based on quoted market prices, where available. These fair values are obtained primarily from third-party pricing services, which generally use Level I or Level II inputs for the determination of fair value, to facilitate fair value measurements and disclosures. Derivatives: Fair values are based on the quoted market prices by the financial institution that is the counterparty to the derivative transaction. We independently verify prices provided by the counterparties using valuation models that incorporate observable market inputs for similar derivative transactions. Derivatives are designated as Level II securities. Derivatives presented within the fair value hierarchy table below are presented on a gross basis and not on a master netting basis by counterparty. A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019 is as follows: Level I Level II Level III Total March 31, 2020 Assets: Cash equivalents $ 2,363 $ — $ — $ 2,363 Fixed maturity securities, available-for-sale: United States Government securities — 474 — 474 Government sponsored securities — 326 — 326 States, municipalities and political subdivisions, tax-exempt — 4,987 — 4,987 Corporate securities — 8,896 316 9,212 Residential mortgage-backed securities — 3,720 2 3,722 Commercial mortgage-backed securities — 78 — 78 Other securities — 1,582 5 1,587 Total fixed maturity securities, available-for-sale — 20,063 323 20,386 Equity securities: Exchange traded funds 245 — — 245 Fixed maturity mutual funds — 211 — 211 Common equity securities 2 30 — 32 Private equity securities — — 82 82 Total equity securities 247 241 82 570 Securities lending collateral — 426 — 426 Derivatives — 49 — 49 Total assets $ 2,610 $ 20,779 $ 405 $ 23,794 Liabilities: Derivatives $ — $ (5 ) $ — $ (5 ) Total liabilities $ — $ (5 ) $ — $ (5 ) December 31, 2019 Assets: Cash equivalents $ 2,015 $ — $ — $ 2,015 Fixed maturity securities, available-for-sale: United States Government securities — 525 — 525 Government sponsored securities — 141 — 141 States, municipalities and political subdivisions, tax-exempt — 4,851 — 4,851 Corporate securities — 8,882 303 9,185 Residential mortgage-backed securities — 3,730 2 3,732 Commercial mortgage-backed securities — 86 — 86 Other securities — 1,654 7 1,661 Total fixed maturity securities, available-for-sale — 19,869 312 20,181 Equity securities: Exchange traded funds 44 — — 44 Fixed maturity mutual funds — 643 — 643 Common equity securities 206 31 — 237 Private equity securities — — 85 85 Total equity securities 250 674 85 1,009 Securities lending collateral — 353 — 353 Derivatives — 23 — 23 Total assets $ 2,265 $ 20,919 $ 397 $ 23,581 Liabilities: Derivatives $ — $ (1 ) $ — $ (1 ) Total liabilities $ — $ (1 ) $ — $ (1 ) A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the three months ended March 31, 2020 and 2019 is as follows: Corporate Securities Residential Mortgage- backed Securities Other Securities Equity Securities Total Three Months Ended March 31, 2020 Beginning balance at January 1, 2020 $ 303 $ 2 $ 7 $ 85 $ 397 Total losses: Recognized in net income (2 ) — — (6 ) (8 ) Recognized in accumulated other comprehensive loss (10 ) — — — (10 ) Purchases 26 — — 12 38 Sales (3 ) — — (9 ) (12 ) Settlements (11 ) — (2 ) — (13 ) Transfers into Level III 13 — — — 13 Ending balance at March 31, 2020 $ 316 $ 2 $ 5 $ 82 $ 405 Change in unrealized losses included in net income related to assets still held at March 31, 2020 $ — $ — $ — $ (7 ) $ (7 ) Three Months Ended March 31, 2019 Beginning balance at January 1, 2019 $ 287 $ 6 $ 17 $ 313 $ 623 Total (losses) gains: Recognized in net income (1 ) — — (2 ) (3 ) Recognized in accumulated other comprehensive loss 2 — — — 2 Purchases 33 — 2 7 42 Sales (1 ) — — (21 ) (22 ) Settlements (21 ) — (1 ) — (22 ) Transfers into Level III — — 3 — 3 Transfers out of Level III (2 ) — (7 ) — (9 ) Ending balance at March 31, 2019 $ 297 $ 6 $ 14 $ 297 $ 614 Change in unrealized gains included in net income related to assets still held at March 31, 2019 $ — $ — $ — $ (2 ) $ (2 ) There were no individually material transfers into or out of Level III during the three months ended March 31, 2020 or 2019 . Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. As disclosed in Note 3, “Business Acquisitions,” we completed our acquisition of Beacon on February 28, 2020. The preliminary values of net assets acquired in our acquisition of Beacon and resulting goodwill and other intangible assets were recorded at fair value primarily using Level III inputs. The majority of Beacon’s assets acquired and liabilities assumed were recorded at their carrying values as of the respective date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The preliminary fair values of goodwill and other intangible assets acquired in our acquisition of Beacon were internally estimated based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets could be expected to generate in the future. We developed internal estimates for the expected cash flows and discount rate in the present value calculation. Other than the assets acquired and liabilities assumed in our acquisition of Beacon described above, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the three months ended March 31, 2020 or 2019 . Our valuation policy is determined by members of our treasury and accounting departments. Whenever possible, our policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, unobservable inputs or other valuation techniques. These techniques are significantly affected by our assumptions, including discount rates and estimates of future cash flows. The use of assumptions for unobservable inputs for the determination of fair value involves a level of judgment and uncertainty. Changes in assumptions that reasonably could have been different at the reporting date may result in a higher or lower determination of fair value. Changes in fair value measurements, if significant, may affect performance of cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. Our valuation policy is generally to obtain quoted prices for each security from third-party pricing services, which are derived through recently reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. As we are responsible for the determination of fair value, we perform analysis on the prices received from the pricing services to determine whether the prices are reasonable estimates of fair value. This analysis is performed by our internal treasury personnel who are familiar with our investment portfolios, the pricing services engaged and the valuation techniques and inputs used. Our analysis includes procedures such as a review of month-to-month price fluctuations and price comparisons to secondary pricing services. There were no adjustments to quoted market prices obtained from the pricing services during the three months ended March 31, 2020 or 2019 . In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in our consolidated balance sheets. Non-financial instruments such as real estate, property and equipment, other current assets, deferred income taxes, intangible assets and certain financial instruments, such as policy liabilities, are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine our underlying economic value. The carrying amounts for cash, accrued investment income, premium receivables, self-funded receivables, other receivables, income taxes receivable/payable, unearned income, accounts payable and accrued expenses, security trades pending payable, securities lending payable and certain other current liabilities approximate fair value because of the short term nature of these items. These assets and liabilities are not listed in the table below. The following methods and assumptions were used to estimate the fair value of each class of financial instrument that is recorded at its carrying value in our consolidated balance sheets: Other invested assets: Other invested assets include primarily our investments in limited partnerships, joint ventures and other non-controlled corporations, as well as the cash surrender value of corporate-owned life insurance policies. Investments in limited partnerships, joint ventures and other non-controlled corporations are carried at our share in the entities’ undistributed earnings, which approximates fair value. The carrying value of corporate-owned life insurance policies represents the cash surrender value as reported by the respective insurer, which approximates fair value. Short-term borrowings: The fair value of our short-term borrowings is based on quoted market prices for the same or similar debt, or, if no quoted market prices were available, on the current market interest rates estimated to be available to us for debt of similar terms and remaining maturities. Long-term debt – senior revolving credit facility: The carrying amount for the senior revolving credit facility approximates fair value, and is based on the current market interest rates estimated to be available to us for debt of similar terms and remaining maturities. Long-term debt – commercial paper: The carrying amount for commercial paper approximates fair value, as the underlying instruments have variable interest rates at market value. Long-term debt – senior unsecured notes and surplus notes: The fair values of our notes are based on quoted market prices in active markets for the same or similar debt, or, if no quoted market prices are available, on the current market observable rates estimated to be available to us for debt of similar terms and remaining maturities. Long-term debt – convertible debentures: The fair value of our convertible debentures is based on the quoted market price in the active private market in which the convertible debentures trade. A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at March 31, 2020 and December 31, 2019 is as follows: Carrying Value Estimated Fair Value Level I Level II Level III Total March 31, 2020 Assets: Other invested assets $ 4,181 $ — $ — $ 4,181 $ 4,181 Liabilities: Debt: Short-term borrowings 1,075 — 1,075 — 1,075 Senior revolving credit facility 300 — 300 — 300 Commercial paper 1,305 — 1,305 — 1,305 Notes 18,867 — 20,343 — 20,343 Convertible debentures 136 — 680 — 680 December 31, 2019 Assets: Other invested assets $ 4,258 $ — $ — $ 4,258 $ 4,258 Liabilities: Debt: Short-term borrowings 700 — 700 — 700 Commercial paper 400 — 400 — 400 Notes 18,840 — 20,470 — 20,470 Convertible debentures 145 — 904 — 904 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three months ended March 31, 2020 and 2019 , we recognized income tax expense of $566 and $394 , respectively, which represent effective tax rates of 27.1% and 20.3% , respectively. The increase in our effective income tax rate was primarily due to the reinstatement of the non-tax deductible Health Insurance Provider Fee, or HIP Fee, for 2020. Income taxes payable totaled $159 at March 31, 2020. Income taxes receivable totaled $335 at December 31, 2019 |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit credit included in our consolidated statements of income for the three months ended March 31, 2020 and 2019 are as follows: Pension Benefits Other Benefits Three Months Ended Three Months Ended 2020 2019 2020 2019 Interest cost $ 12 $ 16 $ 3 $ 4 Expected return on assets (40 ) (34 ) (6 ) (5 ) Recognized actuarial loss 6 4 — — Settlement loss 5 2 — — Amortization of prior service credit — — (2 ) (3 ) Net periodic benefit credit $ (17 ) $ (12 ) $ (5 ) $ (4 ) For the year ending December 31, 2020 , no material contributions are expected to be necessary to meet the Employee Retirement Income Security Act of 1974, as amended, or ERISA, required funding levels; however, we may elect to make discretionary contributions up to the maximum amount deductible for income tax purposes. No contributions were made to our retirement benefit plans during the three months ended March 31, 2020 and 2019 . |
Medical Claims Payable
Medical Claims Payable | 3 Months Ended |
Mar. 31, 2020 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Medical Claims payable | Medical Claims Payable A reconciliation of the beginning and ending balances for medical claims payable, by segment (see Note 15, “Segment Information”), for the three months ended March 31, 2020 is as follows: Commercial & Specialty Business Government Business Other Total Gross medical claims payable, beginning of period $ 3,039 $ 5,608 $ — $ 8,647 Ceded medical claims payable, beginning of period (14 ) (19 ) — (33 ) Net medical claims payable, beginning of period 3,025 5,589 — 8,614 Business combinations and purchase adjustments — 141 198 339 Net incurred medical claims: Current period 6,090 15,010 130 21,230 Prior periods redundancies (293 ) (407 ) — (700 ) Total net incurred medical claims 5,797 14,603 130 20,530 Net payments attributable to: Current period medical claims 3,908 9,698 138 13,744 Prior periods medical claims 1,875 4,234 — 6,109 Total net payments 5,783 13,932 138 19,853 Net medical claims payable, end of period 3,039 6,401 190 9,630 Ceded medical claims payable, end of period 37 23 — 60 Gross medical claims payable, end of period $ 3,076 $ 6,424 $ 190 $ 9,690 Activity in the Other segment resulted from our acquisition of Beacon. At March 31, 2020 , the total of net incurred but not reported liabilities plus expected development on reported claims for the Commercial & Specialty Business was $94 , $763 and $2,182 for the claim years 2018 and prior, 2019 and 2020, respectively. At March 31, 2020 , the total of net incurred but not reported liabilities plus expected development on reported claims for the Government Business was $63 , $885 and $5,453 for the claim years 2018 and prior, 2019 and 2020, respectively. At March 31, 2020, the total of net incurred but not reported liabilities plus expected development on reported claims for Other was $0 , $0 and $190 for the claim years 2018 and prior, 2019 and 2020, respectively. A reconciliation of the beginning and ending balances for medical claims payable, by segment (see Note 15, “Segment Information”), for the three months ended March 31, 2019 is as follows: Commercial & Specialty Business Government Business Other Total Gross medical claims payable, beginning of period $ 2,586 $ 4,680 $ — $ 7,266 Ceded medical claims payable, beginning of period (10 ) (24 ) — (34 ) Net medical claims payable, beginning of period 2,576 4,656 — 7,232 Net incurred medical claims: Current period 6,053 12,741 — 18,794 Prior periods redundancies (197 ) (258 ) — (455 ) Total net incurred medical claims 5,856 12,483 — 18,339 Net payments attributable to: Current period medical claims 3,898 8,265 — 12,163 Prior periods medical claims 1,766 3,648 — 5,414 Total net payments 5,664 11,913 — 17,577 Net medical claims payable, end of period 2,768 5,226 — 7,994 Ceded medical claims payable, end of period 8 26 — 34 Gross medical claims payable, end of period $ 2,776 $ 5,252 $ — $ 8,028 The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for periods in 2020 are as follows: Three Months Ended Three Months Ended Net incurred medical claims: Commercial & Specialty Business $ 5,797 $ 5,856 Government Business 14,603 12,483 Other 130 — Total net incurred medical claims 20,530 18,339 Quality improvement and other claims expense 959 943 Benefit expense $ 21,489 $ 19,282 The reconciliation of the medical claims payable reflected in the tables above to the consolidated ending balance for medical claims payable included in the consolidated balance sheet, as of March 31, 2020 , is as follows: Commercial & Specialty Business Government Business Other Total Net medical claims payable, end of period $ 3,039 $ 6,401 $ 190 $ 9,630 Ceded medical claims payable, end of period 37 23 — 60 Insurance lines other than short duration — 212 — 212 Gross medical claims payable, end of period $ 3,076 $ 6,636 $ 190 $ 9,902 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt We generally issue senior unsecured notes for long-term borrowing purposes. At March 31, 2020 and December 31, 2019 , we had $18,842 and $18,815 , respectively, outstanding under these notes. We have an unsecured surplus note with an outstanding principal balance of $25 at both March 31, 2020 and December 31, 2019 . We have a senior revolving credit facility, or the 5-Year Facility, with a group of lenders for general corporate purposes. The 5-Year Facility provides credit up to $2,500 and matures in June 2024. We also have a 364-day senior revolving credit facility, or 364-Day Facility, with a group of lenders for general corporate purposes, which provides for credit in the amount of $1,000 and matures in June 2020. Our ability to borrow under these credit facilities is subject to compliance with certain covenants, including covenants requiring us to maintain a defined debt-to-capital ratio of not more than 60%, subject to increase in certain circumstances set forth in the applicable credit agreement. As of March 31, 2020, our debt-to-capital ratio, as defined and calculated under the credit facilities, was 40.6%. We do not believe the restrictions contained in any of our credit facility covenants materially affect our financial or operating flexibility. As of March 31, 2020, we were in compliance with all of the debt covenants under these credit facilities. There were no amounts outstanding under the 364-Day Facility at any time during the three months ended March 31, 2020 or the year ended December 31, 2019 . At March 31, 2020 and December 31, 2019, $300 and $0 , respectively, were outstanding under our 5-Year Facility. We repaid the $300 outstanding on the 5-Year Facility on April 23, 2020. Through certain subsidiaries, we have entered into multiple 364-day lines of credit, or the Subsidiary Credit Facilities, with separate lenders for general corporate purposes. The Subsidiary Credit Facilities provide combined credit of up to $500 . At March 31, 2020 and December 31, 2019 , $300 and $50 , respectively, were outstanding under our Subsidiary Credit Facilities. We have an authorized commercial paper program of up to $3,500 , the proceeds of which may be used for general corporate purposes. At March 31, 2020 and December 31, 2019 , we had $1,305 and $400 , respectively, outstanding under this program. We have outstanding senior unsecured convertible debentures due 2042, or the Debentures, which are governed by an indenture between us and The Bank of New York Mellon Trust Company, N.A., as trustee, or the indenture. We have accounted for the Debentures in accordance with the FASB cash conversion guidance for debt with conversion and other options. As a result, the value of the embedded conversion option (net of deferred taxes and equity issuance costs) has been bifurcated from its debt host and recorded as a component of additional paid-in capital in our consolidated balance sheets. During the three months ended March 31, 2020 , $13 aggregate principal amount of the Debentures were surrendered for conversion by certain holders in accordance with the terms and provisions of the indenture. We elected to settle the excess of the principal amount of the conversions with cash for total payments of $52 . We recognized a loss of $1 on the extinguishment of debt related to the Debentures, based on the fair values of the debt on the conversion settlement dates. The following table summarizes at March 31, 2020 the related balances, conversion rate and conversion price of the Debentures: Outstanding principal amount $ 202 Unamortized debt discount $ 64 Net debt carrying amount $ 136 Equity component carrying amount $ 73 Conversion rate (shares of common stock per $1,000 of principal amount) 13.9862 Effective conversion price (per $1,000 of principal amount) $ 71.4990 We are a member, through certain subsidiaries, of the Federal Home Loan Bank of Indianapolis, the Federal Home Loan Bank of Cincinnati and the Federal Home Loan Bank of Atlanta, or collectively, the FHLBs. As a member, we have the ability to obtain short-term cash advances, subject to certain minimum collateral requirements. We had $775 and $650 in outstanding short-term borrowings from the FHLBs at March 31, 2020 and December 31, 2019 , respectively, with fixed interest rates of 0.679% and 1.664% , respectively. All debt is a direct obligation of Anthem, Inc., except for the surplus note, the FHLB borrowings, and the Subsidiary Credit Facilities. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Litigation and Regulatory Proceedings In the ordinary course of business, we are defendants in, or parties to, a number of pending or threatened legal actions or proceedings. To the extent a plaintiff or plaintiffs in the following cases have specified in their complaint or in other court filings the amount of damages being sought, we have noted those alleged damages in the descriptions below. With respect to the cases described below, we contest liability and/or the amount of damages in each matter and believe we have meritorious defenses. Where available information indicates that it is probable that a loss has been incurred as of the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many proceedings, however, it is difficult to determine whether any loss is probable or reasonably possible. In addition, even where loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously identified loss contingency, it is not always possible to reasonably estimate the amount of the possible loss or range of loss. With respect to many of the proceedings to which we are a party, we cannot provide an estimate of the possible losses, or the range of possible losses in excess of the amount, if any, accrued, for various reasons, including but not limited to some or all of the following: (i) there are novel or unsettled legal issues presented, (ii) the proceedings are in early stages, (iii) there is uncertainty as to the likelihood of a class being certified or decertified or the ultimate size and scope of the class, (iv) there is uncertainty as to the outcome of pending appeals or motions, (v) there are significant factual issues to be resolved, and/or (vi) in many cases, the plaintiffs have not specified damages in their complaint or in court filings. For those legal proceedings where a loss is probable, or reasonably possible, and for which it is possible to reasonably estimate the amount of the possible loss or range of losses, we currently believe that the range of possible losses, in excess of established reserves is, in the aggregate, from $0 to approximately $800 at March 31, 2020 . This estimated aggregate range of reasonably possible losses is based upon currently available information taking into account our best estimate of such losses for which such an estimate can be made. Blue Cross Blue Shield Antitrust Litigation We are a defendant in multiple lawsuits that were initially filed in 2012 against the BCBSA and Blue Cross and/or Blue Shield licensees, or Blue plans, across the country. The cases were consolidated into a single, multi-district proceeding captioned In re Blue Cross Blue Shield Antitrust Litigation that is pending in the United States District Court for the Northern District of Alabama, or the Court. Generally, the suits allege that the BCBSA and the Blue plans have conspired to horizontally allocate geographic markets through license agreements, best efforts rules that limit the percentage of non-Blue revenue of each plan, restrictions on acquisitions rules governing the BlueCard and National Accounts programs and other arrangements in violation of the Sherman Antitrust Act, or Sherman Act, and related state laws. The cases were brought by two putative nationwide classes of plaintiffs, health plan subscribers and providers, and actions filed in twenty-eight states have been consolidated into the multi-district proceeding. In response to cross motions for partial summary judgment by plaintiffs and defendants, the Court issued an order in April 2018 determining that the defendants’ aggregation of geographic market allocations and output restrictions are to be analyzed under a per se standard of review, and the BlueCard program and other alleged Section 1 Sherman Act violations are to be analyzed under the rule of reason standard of review. The Court also found that there remain genuine issues of material fact as to whether defendants operate as a single entity with regard to the enforcement of the Blue Cross Blue Shield trademarks. No dates have been set for either the final pretrial conferences or trials in these actions. In March 2019, the Court issued a Fourth Amended Scheduling Order requiring that briefing on motions for class certification and related expert reports, merits and damages expert reports, and certain dispositive motions occur in 2019. In April 2019, plaintiffs filed their motions for class certification in conjunction with their supporting expert reports. Defendants filed their motions to exclude plaintiffs’ experts, as well as their opposition to plaintiffs’ motions for class certification, in July 2019. The case has been stayed by the court until further notice. We intend to vigorously defend these suits; however, their ultimate outcome cannot be presently determined. Blue Cross of California Taxation Litigation In July 2013, our California affiliate Blue Cross of California (doing business as Anthem Blue Cross), or BCC, was named as a defendant in a California taxpayer action filed in Los Angeles County Superior Court, captioned Michael D. Myers v. State Board of Equalization, et al. This action was brought under a California statute that permits an individual taxpayer to sue a governmental agency when the taxpayer believes the agency has failed to enforce governing law. Plaintiff contends that BCC, a licensed Health Care Service Plan, or HCSP, is an “insurer” for purposes of taxation despite acknowledging it is not an “insurer” under regulatory law. At the time, under California law, “insurers” were required to pay a gross premiums tax, or GPT, calculated as 2.35% on gross premiums. As a licensed HCSP, BCC has paid the California Corporate Franchise Tax, or CFT, the tax paid by California businesses generally. Plaintiff contends that BCC must pay the GPT rather than the CFT, and seeks a writ of mandate directing the taxing agencies to collect the GPT and an order requiring BCC to pay GPT back taxes, interest, and penalties for the eight-year period prior to the filing of the complaint. In March 2018, the Superior Court denied BCC’s motion for judgment on the pleadings and similar motions brought by other entities. We filed a writ of mandate in the California Court of Appeal. Although the California Court of Appeal initially accepted our writ, it later indicated that it would not hear the issues raised by our writ until the case concludes in the Superior Court. The Superior Court postponed the March 2020 trial date to July 2020. The parties are currently engaged in discovery. Because GPT is constitutionally imposed in lieu of certain other taxes, BCC has filed protective tax refund claims with the City of Los Angeles, the California Department of Health Care Services and the Franchise Tax Board to protect its rights to recover certain taxes previously paid should BCC eventually be determined to be subject to the GPT for the tax periods at issue in the litigation. BCC intends to vigorously defend this suit; however, its ultimate outcome cannot be presently determined. Express Scripts, Inc. Pharmacy Benefit Management Litigation In March 2016, we filed a lawsuit against Express Scripts, Inc., or Express Scripts, our vendor at the time for PBM services, captioned Anthem, Inc. v. Express Scripts, Inc. , in the U.S. District Court for the Southern District of New York. The lawsuit seeks to recover over $14,800 in damages for pharmacy pricing that is higher than competitive benchmark pricing under the agreement between the parties, or the ESI PBM Agreement, over $158 in damages related to operational breaches, as well as various declarations under the ESI PBM Agreement between the parties, including that Express Scripts: (i) breached its obligation to negotiate in good faith and to agree in writing to new pricing terms; (ii) was required to provide competitive benchmark pricing to us through the term of the ESI PBM Agreement; (iii) has breached the ESI PBM Agreement; and (iv) is required under the ESI PBM Agreement to provide post-termination services, at competitive benchmark pricing, for one year following any termination. Express Scripts has disputed our contractual claims and is seeking declaratory judgments: (i) regarding the timing of the periodic pricing review under the ESI PBM Agreement; and (ii) that it has no obligation to ensure that we receive any specific level of pricing, that we have no contractual right to any change in pricing under the ESI PBM Agreement and that its sole obligation is to negotiate proposed pricing terms in good faith. In the alternative, Express Scripts claims that we have been unjustly enriched by its payment of $4,675 at the time we entered into the ESI PBM Agreement. In March 2017, the court granted our motion to dismiss Express Scripts’ counterclaims for (i) breach of the implied covenant of good faith and fair dealing, and (ii) unjust enrichment with prejudice. The only remaining claims are for breach of contract and declaratory relief. The period of time for completing discovery has been extended to August 2020 due to the recent outbreak of COVID-19. We intend to vigorously pursue our claims and defend against any counterclaims, which we believe are without merit; however, the ultimate outcome cannot be presently determined. In re Express Scripts/Anthem ERISA Litigation We are a defendant in a class action lawsuit that was initially filed in June 2016 against Anthem, Inc. and Express Scripts, which has been consolidated into a single multi-district lawsuit captioned In Re Express Scripts/Anthem ERISA Litigation, in the U.S. District Court for the Southern District of New York. The consolidated complaint was filed by plaintiffs against Express Scripts and us on behalf of all persons who are participants in or beneficiaries of any ERISA or non-ERISA healthcare plan from December 1, 2009 to December 31, 2019 in which we provided prescription drug benefits through the ESI PBM Agreement and paid a percentage based co-insurance payment in the course of using that prescription drug benefit. The plaintiffs allege that we breached our duties, either under ERISA or with respect to the implied covenant of good faith and fair dealing implied in the health plans, (i) by failing to adequately monitor Express Scripts’ pricing under the ESI PBM Agreement and (ii) by placing our own pecuniary interest above the best interests of our insureds by allegedly agreeing to higher pricing in the ESI PBM Agreement in exchange for the purchase price for our NextRx PBM business, and (iii) with respect to the non-ERISA members, by negotiating and entering into the ESI PBM Agreement that was allegedly detrimental to the interests of such non-ERISA members. Plaintiffs seek to hold us and Express Scripts jointly and severally liable and to recover all losses suffered by the proposed class, equitable relief, disgorgement of alleged ill-gotten gains, injunctive relief, attorney’s fees and costs and interest. In April 2017, we filed a motion to dismiss the claims brought against us, and it was granted, without prejudice, in January 2018. Plaintiffs filed a notice of appeal with the United States Court of Appeals for the Second Circuit, which was heard in October 2018 but has not yet been decided. We intend to vigorously defend this suit; however, its ultimate outcome cannot be presently determined. Cigna Corporation Merger Litigation In July 2015, we and Cigna Corporation, or Cigna, announced that we entered into the Cigna Agreement and Plan of Merger, or Cigna Merger Agreement, pursuant to which we would acquire all outstanding shares of Cigna. In July 2016, the U.S. Department of Justice, or DOJ, along with certain state attorneys general, filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia, or District Court, seeking to block the merger. In February 2017, Cigna purported to terminate the Cigna Merger Agreement and commenced litigation against us in the Delaware Court of Chancery, or Delaware Court, seeking damages, including the $1,850 termination fee pursuant to the terms of the Cigna Merger Agreement, and a declaratory judgment that its purported termination of the Cigna Merger Agreement was lawful, among other claims, which is captioned Cigna Corp. v. Anthem Inc. Also in February 2017, we initiated our own litigation against Cigna in the Delaware Court seeking a temporary restraining order to enjoin Cigna from terminating the Cigna Merger Agreement, specific performance compelling Cigna to comply with the Cigna Merger Agreement and damages, which is captioned Anthem Inc. v. Cigna Corp . In April 2017, the U.S. Circuit Court of Appeals for the District of Columbia affirmed the ruling of the District Court, which blocked the merger. In May 2017, after the Delaware Court denied our motion to enjoin Cigna from terminating the Cigna Merger Agreement, we delivered to Cigna a notice terminating the Cigna Merger Agreement. In the Delaware Court litigation, trial commenced in late February 2019 and concluded in March 2019. The Delaware Court held closing argument in November 2019 and took the matter under consideration. In February 2020, the Delaware Court requested supplemental briefing which has been submitted. We believe Cigna’s allegations are without merit and we intend to vigorously pursue our claims and defend against Cigna’s allegations; however, the ultimate outcome of our litigation with Cigna cannot be presently determined. In October 2018, a shareholder filed a derivative lawsuit in the State of Indiana Marion County Superior Court, captioned Henry Bittmann, Derivatively, et al. v. Joseph R Swedish, et al. , purportedly on behalf of us and our shareholders against certain current and former directors and officers alleging breaches of fiduciary duties, unjust enrichment and corporate waste associated with the Cigna Merger Agreement. This case has been stayed at the request of the parties pending the outcome of our litigation with Cigna in the Delaware Court. This lawsuit’s ultimate outcome cannot be presently determined. Medicare Risk Adjustment Litigation Beginning in December 2016, the DOJ issued civil investigative demands to us to discover information about our retrospective chart review and risk adjustment programs under Parts C and D of the Medicare program. We understand the DOJ is investigating the programs of other Medicare Advantage health plans, along with providers and vendors. In March 2020, the DOJ filed a civil lawsuit against Anthem, Inc. in U.S. District Court for the Southern District of New York in a case captioned United States v. Anthem, Inc . The DOJ’s suit alleges, among other things, that we falsely certified the accuracy of the diagnosis data we submitted to the Centers for Medicare and Medicaid Services, or CMS, for risk-adjustment purposes under Medicare Part C and knowingly failed to delete inaccurate diagnosis codes. The DOJ further alleges that, as a result of these purported acts, we caused CMS to calculate the risk-adjustment payments based on inaccurate diagnosis information, which enabled us to obtain unspecified amounts of payments in Medicare funds in violation of the False Claims Act. We have until the end of May 2020 to respond. We intend to vigorously defend this suit; however, the ultimate outcome cannot be presently determined. Investigations of CareMore and HealthSun With the assistance of outside counsel, we are conducting investigations of risk-adjustment practices (unrelated to our retrospective chart review program) at CareMore Health Plans, Inc., or CareMore one of our California subsidiaries and HealthSun Health Plans, Inc., or HealthSun, one of our Florida subsidiaries. Our CareMore investigation has resulted in the termination of CareMore’s relationship with one contracted provider in California. Our HealthSun investigation focuses on risk adjustment practices initiated prior to our acquisition of HealthSun in December 2017 that continued after the acquisition. We have voluntarily self-disclosed the existence of both investigations to CMS, and the Criminal Division of the DOJ, which then initiated an investigation. We are cooperating with that investigation. We have also asserted indemnity claims for escrowed funds under the HealthSun purchase agreement for, among other things, breach of healthcare representation provisions, based on the conduct discovered during our investigation. We are in active litigation with one group of sellers regarding part of the escrowed funds in a case captioned LPPAS Representative, LLC v. ATH Holding Company, LLC in the Delaware Court. Cyber Attack Regulatory Proceedings and Litigation In February 2015, we reported that we were the target of a sophisticated external cyber attack during which the attackers gained unauthorized access to certain of our information technology systems and obtained personal information related to many individuals and employees. To date, there is no evidence that credit card or medical information was accessed or obtained. Upon discovery of the cyber attack, we took immediate action to remediate the security vulnerability and have continued to implement security enhancements since this incident. Federal and state agencies are investigating, or have investigated, events related to the cyber attack, including how it occurred, its consequences and our responses. The investigations have all been resolved with the exception of an ongoing investigation by a multi-state group of attorneys general, which remains outstanding. Although we are cooperating in this investigation, we may be subject to additional fines or other obligations. We intend to vigorously defend the remaining regulatory investigation; however, its ultimate outcome cannot be presently determined. We have contingency plans and insurance coverage for certain expenses and potential liabilities of this nature and will pursue coverage for all applicable losses; however, the ultimate outcome of our pursuit of insurance coverage cannot be presently determined. Other Contingencies From time to time, we and certain of our subsidiaries are parties to various legal proceedings, many of which involve claims for coverage encountered in the ordinary course of business. We, like HMOs and health insurers generally, exclude certain healthcare and other services from coverage under our HMO, PPO and other plans. We are, in the ordinary course of business, subject to the claims of our enrollees arising out of decisions to restrict or deny reimbursement for uncovered services. The loss of even one such claim, if it results in a significant punitive damage award, could have a material adverse effect on us. In addition, the risk of potential liability under punitive damage theories may increase significantly the difficulty of obtaining reasonable reimbursement of coverage claims. In addition to the lawsuits described above, we are also involved in other pending and threatened litigation of the character incidental to our business, and are from time to time involved as a party in various governmental investigations, audits, reviews and administrative proceedings. These investigations, audits, reviews and administrative proceedings include routine and special inquiries by state insurance departments, state attorneys general, the U.S. Attorney General and subcommittees of the U.S. Congress. Such investigations, audits, reviews and administrative proceedings could result in the imposition of civil or criminal fines, penalties, other sanctions and additional rules, regulations or other restrictions on our business operations. Any liability that may result from any one of these actions, or in the aggregate, could have a material adverse effect on our consolidated financial position or results of operations. Contractual Obligations and Commitments In March 2020, we entered into an agreement with a vendor for information technology infrastructure and related management and support services through June 2025. The new agreement supersedes certain prior agreements for services and includes provisions for additional services not provided under those agreements. Our aggregate commitment under this agreement is approximately $1,700 . We will have the ability to terminate the agreement upon the occurrence of certain events, subject to early termination fees. In the second quarter of 2019, we began using our new pharmacy benefits manager named IngenioRx, Inc., or IngenioRx, to market and offer PBM services to fully-insured and self-funded Anthem health plan customers throughout the country, as well as to external customers outside of the health plans we own. The comprehensive prescription benefits management services portfolio includes, but is not limited to, formulary management, pharmacy networks, prescription drug database, member services and mail order capabilities. Also in the second quarter of 2019, IngenioRx began delegating certain PBM administrative functions, such as claims processing and prescription fulfillment, to CaremarkPCS Health, L.L.C.,which is a subsidiary of CVS Health Corporation, pursuant to a five-year agreement. With IngenioRx, we retain the responsibilities for clinical and formulary strategy and development, member and employer experiences, operations, sales, marketing, account management and retail network strategy. From December 2009 through December 2019, we delegated certain PBM functions and administrative services to Express Scripts pursuant to the ESI PBM Agreement. In January 2019, we exercised our contractual right to terminate the ESI PBM Agreement earlier than the original expiration date of December 31, 2019, due to the acquisition of Express Scripts by Cigna. We began transitioning existing members from Express Scripts to IngenioRx in the second quarter of 2019, and completed the transition of all of our members by January 1, 2020. Prior to the termination of the ESI PBM Agreement, Express Scripts managed the network of pharmacy providers, operated mail order pharmacies and processed prescription drug claims on our behalf, while we sold and supported the product for our members, made formulary decisions, sold drug benefit design strategy and provided front line member support. Express Scripts continues to provide certain audit and run out transition services related to our PBM business. Notwithstanding our termination of the ESI PBM Agreement, the litigation between us and Express Scripts regarding the ESI PBM Agreement continues. For additional information regarding this lawsuit, refer to the Litigation and Regulatory Proceedings–Express Scripts, Inc. Pharmacy Benefit Management Litigation section above. We believe we have appropriately recognized all rights and obligations under the ESI PBM Agreement as of March 31, 2020. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2020 | |
Capital [Abstract] | |
Capital Stock | Capital Stock Use of Capital – Dividends and Stock Repurchase Program We regularly review the appropriate use of capital, including acquisitions, common stock and debt security repurchases and dividends to shareholders. The declaration and payment of any dividends or repurchases of our common stock or debt is at the discretion of our Board of Directors and depends upon our financial condition, results of operations, future liquidity needs, regulatory and capital requirements and other factors deemed relevant by our Board of Directors. A summary of the cash dividend activity for the three months ended March 31, 2020 and 2019 is as follows: Declaration Date Record Date Payment Date Cash Dividend per Share Total Three Months Ended March 31, 2020 January 28, 2020 March 16, 2020 March 27, 2020 $0.95 $ 240 Three Months Ended March 31, 2019 January 29, 2019 March 18, 2019 March 29, 2019 $0.80 $ 206 On April 28, 2020, our Audit Committee declared a second quarter 2020 dividend to shareholders of $0.95 per share, payable on June 25, 2020 to shareholders of record at the close of business on June 10, 2020 . Under our Board of Directors’ authorization, we maintain a common stock repurchase program. On December 7, 2017, the Board of Directors authorized a $5,000 increase to the common stock repurchase program. Repurchases may be made from time to time at prevailing market prices, subject to certain restrictions on volume, pricing and timing. The repurchases are effected from time to time in the open market, through negotiated transactions, including accelerated share repurchase agreements, and through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Our stock repurchase program is discretionary, as we are under no obligation to repurchase shares. We repurchase shares under the program when we believe it is a prudent use of capital. The excess cost of the repurchased shares over par value is charged on a pro rata basis to additional paid-in capital and retained earnings. We have temporarily suspended our share repurchase program given the market volatility. A summary of common stock repurchases for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended March 31 2020 2019 Shares repurchased 1.9 1.1 Average price per share $ 275.38 $ 275.23 Aggregate cost $ 529 $ 294 Authorization remaining at the end of the period $ 3,263 $ 5,199 For additional information regarding the use of capital for debt security repurchases, see Note 10, “Debt” of this Form 10-Q and Note 12, “Debt,” to our audited consolidated financial statements as of and for the year ended December 31, 2019 included in our 2019 Annual Report on Form 10-K. Stock Incentive Plan s A summary of stock option activity for the three months ended March 31, 2020 is as follows: Number of Shares Weighted- Average Option Price per Share Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at January 1, 2020 3.1 $ 190.31 Granted 1.0 271.27 Exercised (0.3 ) 107.46 Forfeited or expired — 256.05 Outstanding at March 31, 2020 3.8 216.40 7.15 $ 139 Exercisable at March 31, 2020 2.2 171.44 5.57 $ 139 A summary of the nonvested restricted stock activity, including restricted stock units, for the three months ended March 31, 2020 is as follows: Restricted Stock Shares and Units Weighted- Average Grant Date Fair Value per Share Nonvested at January 1, 2020 1.4 $ 242.47 Granted 1.2 272.03 Vested (1.1 ) 193.23 Forfeited (0.1 ) 264.40 Nonvested at March 31, 2020 1.4 271.00 During the three months ended March 31, 2020 , we granted approximately 0.2 restricted stock units that are contingent upon us achieving earnings targets over the three year period from 2020 to 2022. These grants have been included in the activity shown above, but will be subject to adjustment at the end of 2022 based on results in the three year period. During the three months ended March 31, 2020, we granted an additional 0.6 restricted stock units associated with our 2017 grants that were earned as a result of satisfactory completion of performance measures between 2017 and 2019. These grants and vested shares have been included in the activity shown above. Fair Value We use a binomial lattice valuation model to estimate the fair value of all stock options granted. For a more detailed discussion of our stock incentive plan fair value methodology, see Note 14, “Capital Stock,” to our audited consolidated financial statements as of and for the year ended December 31, 2019 included in our 2019 Annual Report on Form 10-K. The following weighted-average assumptions were used to estimate the fair values of options granted during the three months ended March 31, 2020 and 2019 : Three Months Ended March 31 2020 2019 Risk-free interest rate 1.30 % 2.69 % Volatility factor 26.00 % 25.00 % Quarterly dividend yield 0.350 % 0.260 % Weighted-average expected life (years) 4.30 4.40 The following weighted-average fair values per option or share were determined for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31 2020 2019 Options granted during the period $ 54.03 $ 68.92 Restricted stock awards granted during the period 272.03 307.59 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss A reconciliation of the components of accumulated other comprehensive loss at March 31, 2020 and 2019 is as follows: March 31 2020 2019 Investments: Gross unrealized gains $ 510 $ 379 Gross unrealized losses (729 ) (121 ) Net pre-tax unrealized (losses) gains (219 ) 258 Deferred tax asset (liability) 51 (61 ) Net unrealized (losses) gains on investments (168 ) 197 Non-credit components of impairments on investments: Unrealized losses (44 ) (3 ) Deferred tax asset 10 1 Net unrealized non-credit component of impairments on investments (34 ) (2 ) Cash flow hedges: Gross unrealized losses (327 ) (308 ) Deferred tax asset 68 65 Net unrealized losses on cash flow hedges (259 ) (243 ) Defined benefit pension plans: Deferred net actuarial loss (724 ) (744 ) Deferred prior service credits — (1 ) Deferred tax asset 185 191 Net unrecognized periodic benefit costs for defined benefit pension plans (539 ) (554 ) Postretirement benefit plans: Deferred net actuarial loss (25 ) (57 ) Deferred prior service costs 18 31 Deferred tax asset 2 7 Net unrecognized periodic benefit costs for postretirement benefit plans (5 ) (19 ) Foreign currency translation adjustments: Gross unrealized losses (4 ) (3 ) Deferred tax asset 1 1 Net unrealized losses on foreign currency translation adjustments (3 ) (2 ) Accumulated other comprehensive loss $ (1,008 ) $ (623 ) Other comprehensive income (loss) reclassification adjustments for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31 2020 2019 Investments: Net holding (loss) gain on investment securities arising during the period, net of tax benefit (expense) of $213 and $(98), respectively $ (716 ) $ 350 Reclassification adjustment for net realized gains on investment securities, net of tax benefit of $7 and $2, respectively 27 7 Total reclassification adjustment on investments (689 ) 357 Non-credit component of impairments on investments: Non-credit component of impairments on investments, net of tax benefit of $9 (32 ) — Cash flow hedges: Holding gain, net of tax expense of ($1) and ($0), respectively 3 3 Other: Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax expense of ($3) and ($1), respectively 7 3 Foreign currency translation adjustment, net of tax expense of ($0) and ($0), respectively (1 ) — Net (loss) gain recognized in other comprehensive income, net of tax benefit (expense) of $211 and $(101), respectively $ (712 ) $ 363 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The denominator for basic and diluted earnings per share for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended 2020 2019 Denominator for basic earnings per share – weighted-average shares 252.4 257.1 Effect of dilutive securities – employee stock options, nonvested restricted stock awards and convertible debentures 4.0 5.2 Denominator for diluted earnings per share 256.4 262.3 During the three months ended March 31, 2020 and 2019 , weighted-average shares related to certain stock options of 0.9 and 0.2 , respectively, were excluded from the denominator for diluted earnings per share because the stock options were anti-dilutive. During the three months ended March 31, 2020 , we issued approximately 1.2 restricted stock units under our stock incentive plans, 0.2 of which vesting is contingent upon us meeting specified annual earnings targets for the three year period of 2020 through 2022. During the three months ended March 31, 2019 , we issued approximately 0.5 restricted stock units under our stock incentive plans, 0.2 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Beginning in 2020, IngenioRx meets the quantitative thresholds for a reportable segment based on the FASB guidance. The results of our operations are now described through four reportable segments: Commercial & Specialty Business, Government Business, IngenioRx and Other. Our Commercial & Specialty Business segment includes our Local Group, National Accounts, Individual and Specialty businesses. Business units in the Commercial & Specialty Business segment offer fully-insured health products; provide a broad array of managed care services to self-funded customers including claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs and other administrative services; and provide an array of specialty and other insurance products and services such as dental, vision, life and disability insurance benefits. Our Government Business segment includes our Medicare and Medicaid businesses, National Government Services, or NGS, and services provided to the federal government in connection with the FEHB program. Our Medicare business includes services such as Medicare Supplement plans; Medicare Advantage, including Special Needs Plans; Medicare Part D; and dual-eligible programs through Medicare-Medicaid Plans. Our Medicaid business includes our managed care alternatives through publicly funded healthcare programs, including Medicaid, Medicaid expansion programs related to the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, amended, Temporary Assistance for Needy Families, programs for seniors and people with disabilities, Children’s Health Insurance Programs, and specialty programs such as those focused on long-term services and support, HIV/AIDS, foster care, behavioral health and/or substance abuse disorders, and intellectual disabilities or developmental disabilities. NGS acts as a Medicare contractor for the federal government in several regions across the nation. Our IngenioRx segment includes our PBM business, which began its operations during the second quarter of 2019. IngenioRx markets and offers PBM services to fully-insured and self-funded Anthem health plan customers, as well as to external customers outside of the health plans we own. IngenioRx has a comprehensive prescription benefits management services portfolio which includes services, such as formulary management, pharmacy networks, prescription drug database, member services and mail order capabilities. Our Other segment includes our Diversified Business Group, or DBG, which is our integrated health services business, certain eliminations and corporate expenses not allocated to our other reportable segments. We reclassified DBG from our Government Business segment to the Other segment during the second quarter of 2019 to reflect changes in how our segments are being managed. Amounts for the three months ended March 31, 2019 have been reclassified to conform to the current year presentation for comparability. Also, beginning on February 28, 2020, DBG includes Beacon. For our 2019 segment reporting, operating gains (losses) generated from IngenioRx and DBG affiliated activity were included in our Commercial & Specialty Business and Government Business segments based upon their utilization of services from IngenioRx and DBG, which aligns with the method by which we assessed the 2019 operating performance of our reportable segments. Beginning January 1, 2020, we are managing the operating performance of each of our segments on a standalone basis. Affiliated revenues represent revenues or cost for services provided by IngenioRx and DBG to our subsidiaries, are recorded at cost or management’s estimate of fair market value, and are eliminated in consolidation. Financial data by reportable segment for the three months ended March 31, 2020 and 2019 is as follows: Commercial & Specialty Business Government Business IngenioRx Other Eliminations Total Three Months Ended March 31, 2020 Operating revenue - unaffiliated $ 9,361 $ 17,466 $ 2,344 $ 277 $ — $ 29,448 Operating revenue - affiliated — — 2,853 750 (3,603 ) — Operating gain 1,420 411 349 14 — 2,194 Three Months Ended March 31, 2019 Operating revenue - unaffiliated $ 9,392 $ 14,925 $ — $ 71 $ — $ 24,388 Operating revenue - affiliated — — — 477 (477 ) — Operating gain (loss) 1,598 374 — (32 ) — 1,940 The major product revenues for each of the reportable segments for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended 2020 2019 Commercial & Specialty Business Managed care products $ 7,569 $ 7,618 Managed care services 1,381 1,366 Dental/Vision products and services 315 323 Other 96 85 Total Commercial & Specialty Business 9,361 9,392 Government Business Managed care products 17,375 14,821 Managed care services 91 104 Total Government Business 17,466 14,925 IngenioRx Pharmacy products and services 5,197 — Total IngenioRx 5,197 — Other Other 1,027 548 Eliminations Eliminations (3,603 ) (477 ) Total product revenues $ 29,448 $ 24,388 The classification between managed care products and managed care services in the above table primarily distinguishes between the levels of risk assumed. Managed care products represent insurance products where we bear the insurance risk, whereas managed care services represent product offerings where we provide claims adjudication and other administrative services to the customer, but the customer principally bears the insurance risk. A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended 2020 2019 Reportable segments’ operating revenue $ 29,448 $ 24,388 Net investment income 254 210 Net realized (losses) gains on financial instruments (24 ) 78 Impairment losses recognized in income (57 ) (10 ) Total revenues $ 29,621 $ 24,666 A reconciliation of reportable segments’ operating gain to income before income tax expense included in our consolidated statements of income for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended 2020 2019 Reportable segments’ operating gain $ 2,194 $ 1,940 Net investment income 254 210 Net realized (losses) gains on financial instruments (24 ) 78 Impairment losses recognized in income (57 ) (10 ) Interest expense (194 ) (187 ) Amortization of other intangible assets (83 ) (87 ) (Loss) gain on extinguishment of debt (1 ) 1 Income before income tax expense $ 2,089 $ 1,945 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We lease office space and certain computer and related equipment using noncancelable operating leases. Our leases have remaining lease terms of 1 year to 15 years. The information related to our leases is as follows: Balance Sheet Location March 31, 2020 December 31, 2019 Operating Leases Right-of-use assets Other noncurrent assets $ 915 $ 575 Lease liabilities, current Other current liabilities 195 158 Lease liabilities, noncurrent Other noncurrent liabilities 801 482 Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Lease Expense Operating lease expense $ 47 $ 45 Short-term lease expense 13 12 Sublease income (3 ) (4 ) Total lease expense $ 57 $ 53 Other information Operating cash paid for amounts included in the measurement of lease liabilities, operating leases $ 44 $ 44 Right-of-use assets obtained in exchange for new lease liabilities, operating leases $ 323 $ — Weighted average remaining lease term, operating leases 7.2 years 6.5 years Weighted average discount rate, operating leases 3.57 % 3.97 % At March 31, 2020 , future lease payments for noncancellable operating leases with initial or remaining terms of one year or more are as follows: 2020 (excluding the three months ended March 31, 2020) $ 140 2021 178 2022 161 2023 140 2024 110 Thereafter 288 Total future minimum payments 1,017 Less imputed interest (21 ) Total lease liabilities $ 996 As of March 31, 2020 , we have additional operating leases for building spaces that have not yet commenced, and some building spaces are being constructed by the lessors and their agents. These leases have terms of up to 12 years and are expected to commence on various dates during 2020 and 2021 when the construction is complete and we take possession of the buildings . The undiscounted lease payments for these leases, which are not included in the tables above, aggregate $226 . |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our 2019 Annual Report on Form 10-K, unless the information contained in those disclosures materially changed or is required by GAAP. Certain prior year amounts have been reclassified to conform to the current year presentation. For additional information on prior year reclassifications, see Note 15, “Segment Information.” In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three months ended March 31, 2020 and 2019 have been recorded. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020 , or any other period. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2019 included in our 2019 Annual Report on Form 10-K. |
Foreign Currency | Certain of our subsidiaries operate outside of the United States and have functional currencies other than the U.S. dollar, or USD. We translate the assets and liabilities of those subsidiaries to USD using the exchange rate in effect at the end of the period. We translate the revenues and expenses of those subsidiaries to USD using the average exchange rates in effect during the period. The net effect of these translation adjustments is included in “Foreign currency translation adjustments” in our consolidated statements of comprehensive income. |
Cash and Cash Equivalents | Cash and Cash Equivalents: We control a number of bank accounts that are used exclusively to hold customer funds for the administration of customer benefits and we have cash and cash equivalents on deposit to meet certain regulatory requirements. These amounts totaled $221 and $215 at March 31, 2020 and December 31, 2019 , respectively, and are included in the cash and cash equivalents line on our consolidated balance sheets. |
Investment, Policy | Investments: Prior to 2020, our fixed maturities were evaluated for other-than-temporary impairment where credit related impairments were presented within the other-than-temporary impairment losses recognized in our consolidated statements of income with an adjustment to the security’s amortized cost basis. Effective January 1, 2020, if a fixed maturity security is in an unrealized loss position and we have the intent to sell the fixed maturity security, or it is more likely than not that we will have to sell the fixed maturity security before recovery of its amortized cost basis, we write down the fixed maturity security’s cost basis to fair value and record an impairment loss in our consolidated statements of income. For impaired fixed maturity securities that we do not intend to sell or if it is more likely than not that we will not have to sell such securities, but we expect that we will not fully recover the amortized cost basis, we recognize the credit component of the impairment as an allowance for credit loss in our consolidated balance sheets and record an impairment loss in our consolidated statements of income. The non-credit component of the impairment is recognized in accumulated other comprehensive loss. Furthermore, unrealized losses entirely caused by non-credit related factors related to fixed maturity securities for which we expect to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive loss. The credit component of an impairment is determined primarily by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting our best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of purchase. For mortgage-backed and asset-backed securities, cash flow estimates are based on assumptions regarding the underlying collateral, including prepayment speeds, vintage, type of underlying asset, geographic concentrations, default rates, recoveries and changes in value. For all other securities, cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings and estimates regarding timing and amount of recoveries associated with a default. For asset-backed securities included in fixed maturity securities, we recognize income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the purchase date of the securities. Such adjustments are reported within net investment income. In accordance with the Financial Accounting Standards Board, or FASB guidance, the changes in fair value of our marketable equity securities are recognized in our results of operations within net realized gains and losses on financial instruments. We have corporate-owned life insurance policies on certain participants in our deferred compensation plans and other members of management. The cash surrender value of the corporate-owned life insurance policies is reported under the caption “Other invested assets” in our consolidated balance sheets. We use the equity method of accounting for investments in companies in which our ownership interest enables us to influence the operating or financial decisions of the investee company. Our proportionate share of equity in net income of these unconsolidated affiliates is reported within net investment income. The equity method investments are reported under the caption “Other invested assets” in our consolidated balance sheets. Investment income is recorded when earned. All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. Under FASB guidance related to accounting for transfers and servicing of financial assets and extinguishments of liabilities, we recognize the collateral as an asset, which is reported under the caption “Other current assets” in our consolidated balance sheets, and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported under the caption “Other current liabilities” in our consolidated balance sheets. The securities on loan are reported in the applicable investment category on our consolidated balance sheets. Unrealized gains or losses on securities lending collateral are included in accumulated other comprehensive loss as a separate component of shareholders’ equity. The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions. To the extent the loaned securities’ value appreciates faster or depreciates slower than the value of the collateral pledged, we are exposed to the risk of the shortfall. As a primary mitigating mechanism, the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall, if any, is collected accordingly. Secondarily, the collateral level is set at 102% of the value of the loaned securities, which provides a cushion before any shortfall arises. The investment of the cash collateral is subject to market risk, which is managed by limiting the investments to higher quality and shorter duration instruments. |
Receivable | Receivables: Premium receivables include the uncollected amounts from insured groups, individuals and government programs. Premium receivables are reported net of an allowance for doubtful accounts of $234 and $237 at March 31, 2020 and December 31, 2019, respectively. Self-funded receivables include administrative fees, claims and other amounts due from self-funded customers. Self-funded receivables are reported net of an allowance for doubtful accounts of $55 and $46 at March 31, 2020 and 2019, respectively. The allowance for doubtful accounts is based on historical collection trends, future forecasts and our judgment regarding the ability to collect specific accounts. Other receivables include pharmacy rebates, provider advances, claims recoveries, reinsurance receivables, proceeds due from brokers on investment trades, other government receivables and other miscellaneous amounts due to us. These receivables are reported net of an allowance for doubtful accounts of $282 and $242 at March 31, 2020 and December 31, 2019, respectively, which is based on historical collection trends, future forecasts and our judgment regarding the ability to collect specific accounts. |
Revenue Recognition | Revenue Recognition: For our non-fully-insured contracts, we had no material contract assets, contract liabilities or deferred contract costs recorded on our consolidated balance sheet at March 31, 2020 . For the three months ended March 31, 2020 , revenue recognized from performance obligations related to prior periods, such as due to changes in transaction price, was not material. For contracts that have an original expected duration of greater than one year, revenue expected to be recognized in future periods related to unfulfilled contractual performance obligations and contracts with variable consideration related to undelivered performance obligations is not material. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance: In November 2019, the FASB issued Accounting Standards Update No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . In May 2019, the FASB issued Accounting Standards Update No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief . In April 2019, the FASB issued Accounting Standards Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . In November 2018, the FASB issued Accounting Standards Update No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . These updates provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost and provide additional clarification and implementation guidance on certain aspects of the previously issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, and have the same effective date and transition requirements as ASU 2016-13. ASU 2016-13 introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities and provides for additional disclosure requirements. ASU 2016-13 requires a cumulative-effect adjustment to the opening balance of retained earnings on the statement of financial position at the date of adoption and a prospective transition approach for debt securities for which an other-than-temporary impairment had been recognized before the adoption date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the date of adoption. We adopted ASU 2016-13 on January 1, 2020, and recognized a cumulative-effect adjustment of $35 to our opening retained earnings for credit related allowances on receivables. The adoption did not have an impact on our consolidated statements of income or cash flows. In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , or ASU 2018-15. The amendments in ASU 2018-15 require implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customer in a software licensing arrangement under the internal-use software guidance. The amendments also require an entity to disclose the nature of its hosting arrangements and adhere to certain presentation requirements in its balance sheet, income statement and statement of cash flows. We adopted ASU 2018-15 on January 1, 2020 using a prospective approach for all implementation costs incurred after the date of adoption, and the adoption did not have an impact on our consolidated financial position, results of operations or cash flows. In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13. The amendments in ASU 2018-13 eliminate, add, and modify certain disclosure requirements for fair value measurements. The amendments are effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for either the entirety of ASU 2018-13 or only the provisions that eliminate or modify disclosure requirements. We early adopted the provisions that eliminate and modify disclosure requirements, on a retrospective basis, effective in our 2018 Annual Report on Form 10-K. We adopted the new disclosure requirements on January 1, 2020, on a prospective basis. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , or ASU 2017-04. This update removes Step 2 of the goodwill impairment test under current guidance, which required a hypothetical purchase price allocation. The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. We adopted ASU 2017-04 on January 1, 2020, and the adoption did not have an impact on our consolidated financial position, results of operations or cash flows. |
Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Not Yet Adopted: In March 2020, the FASB issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , or ASU 2020-04. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate, or LIBOR, or another reference rate expected to be discontinued because of the reference rate reform. The provisions must be applied at a Topic, Subtopic, or Industry Subtopic level for all transactions other than derivatives, which may be applied at a hedging relationship level. The provisions within ASU 2020-04 are available until December 31, 2022, when the reference rate replacement activity is expected to have been completed. We are currently evaluating the provisions within ASU 2020-04. In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12. The amendments in ASU 2019-12 remove certain exceptions to the general principles in ASC Topic 740. The amendments also clarify and amend existing guidance to improve consistent application. The amendments are effective for our annual reporting periods beginning after December 15, 2020, with early adoption permitted. The transition method (retrospective, modified retrospective, or prospective basis) related to the amendments depends on the applicable guidance, and all amendments for which there is no transition guidance specified are to be applied on a prospective basis. We are currently evaluating the effects the adoption of ASU 2019-12 will have on our consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-14, Compensation—Retirement Benefits - Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans , or ASU 2018-14. The amendments in ASU 2018-14 eliminate, add, and modify certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments are effective for our annual reporting periods beginning after December 15, 2020, with early adoption permitted. The guidance is to be applied on a retrospective basis to all periods presented. We are currently evaluating the effects the adoption of ASU 2018-14 will have on our disclosures. In August 2018, the FASB issued Accounting Standards Update No. 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, or ASU 2018-12. The amendments in ASU 2018-12 make changes to a variety of areas to simplify or improve the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. The amendments require insurers to annually review the assumptions they make about their policyholders and update the liabilities for future policy benefits if the assumptions change. The amendments also simplify the amortization of deferred contract acquisition costs and add new disclosure requirements about the assumptions insurers use to measure their liabilities and how they may affect future cash flows. The amendments in ASU 2018-12 will be effective for our interim and annual reporting periods beginning after December 15, 2021. The amendments related to the liability for future policy benefits for traditional and limited-payment contracts and deferred acquisition costs are to be applied to contracts in force as of the beginning of the earliest period presented, with an option to apply such amendments retrospectively with a cumulative-effect adjustment to the opening balance of retained earnings as of the earliest period presented. The amendments for market risk benefits are to be applied retrospectively. We are currently evaluating the effects the adoption of ASU 2018-12 will have on our consolidated financial position, results of operations, cash flows, and related disclosures. There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2019 Annual Report on Form 10-K that had, or are expected to have, a material impact on our consolidated financial position, results of operations or cash flows. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Current and Long-Term Investments, Available-For-Sale | A summary of current and long-term fixed maturity securities, available-for-sale, at March 31, 2020 and December 31, 2019 is as follows: Cost or Non-Credit Component of Impairment Recognized in Other Comprehensive Loss Gross Gross Unrealized Losses Allowance For Credit Losses Estimated Less than 12 Months 12 Months or Greater March 31, 2020 Fixed maturity securities: United States Government securities $ 450 $ 24 $ — $ — $ — $ 474 $ — Government sponsored securities 369 5 (48 ) — — 326 — States, municipalities and political subdivisions 4,768 233 (14 ) — — 4,987 — Corporate securities 9,609 148 (450 ) (44 ) (51 ) 9,212 (44 ) Residential mortgage-backed securities 3,731 93 (95 ) (7 ) — 3,722 — Commercial mortgage-backed securities 81 1 (3 ) (1 ) — 78 — Other securities 1,692 6 (97 ) (14 ) — 1,587 — Total fixed maturity securities $ 20,700 $ 510 $ (707 ) $ (66 ) $ (51 ) $ 20,386 $ (44 ) December 31, 2019 Fixed maturity securities: United States Government securities $ 524 $ 4 $ (3 ) $ — $ — $ 525 $ — Government sponsored securities 136 5 — — — 141 — States, municipalities and political subdivisions 4,592 262 (3 ) — — 4,851 — Corporate securities 8,870 339 (9 ) (15 ) — 9,185 (3 ) Residential mortgage-backed securities 3,654 87 (6 ) (3 ) — 3,732 — Commercial mortgage-backed securities 84 2 — — — 86 — Other securities 1,648 21 (3 ) (5 ) — 1,661 — Total fixed maturity securities $ 19,508 $ 720 $ (24 ) $ (23 ) $ — $ 20,181 $ (3 ) |
Aggregate Fair Value and Gross Unrealized Loss of Fixed Maturity Securities in an Unrealized Loss Position | For fixed maturity securities in an unrealized loss position at March 31, 2020 and December 31, 2019 , the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position: Less than 12 Months 12 Months or Greater (Securities are whole amounts) Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss March 31, 2020 Fixed maturity securities: United States Government securities 1 $ — $ — — $ — $ — Government sponsored securities 278 224 (48 ) 1 — — States, municipalities and political subdivisions 239 509 (14 ) 3 4 — Corporate securities 2,773 5,003 (450 ) 170 176 (44 ) Residential mortgage-backed securities 603 1,182 (95 ) 63 57 (7 ) Commercial mortgage-backed securities 14 29 (3 ) 3 6 (1 ) Other securities 520 1,175 (97 ) 58 142 (14 ) Total fixed maturity securities 4,428 $ 8,122 $ (707 ) 298 $ 385 $ (66 ) December 31, 2019 Fixed maturity securities: United States Government securities 27 $ 250 $ (3 ) 2 $ 1 $ — Government sponsored securities 14 12 — 3 1 — States, municipalities and political subdivisions 114 306 (3 ) 14 11 — Corporate securities 386 558 (9 ) 224 286 (15 ) Residential mortgage-backed securities 321 635 (6 ) 189 237 (3 ) Commercial mortgage-backed securities 1 3 — 4 8 — Other securities 166 415 (3 ) 113 358 (5 ) Total fixed maturity securities 1,029 $ 2,179 $ (24 ) 549 $ 902 $ (23 ) |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | The table below presents a roll-forward by major security type of the allowance for credit losses on fixed maturity securities available-for-sale held at period end for the three months ended March 31, 2020: Corporate Securities Allowance for credit losses: Beginning balance $ — Additions for securities for which no previous expected credit losses were recognized 51 Total allowance for credit losses $ 51 |
Amortized Cost and Fair Value of Fixed Maturity Securities, By Contractual Maturity | The amortized cost and fair value of fixed maturity securities at March 31, 2020 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations. Amortized Cost Estimated Fair Value Due in one year or less $ 520 $ 511 Due after one year through five years 5,730 5,583 Due after five years through ten years 6,035 5,882 Due after ten years 4,603 4,610 Mortgage-backed securities 3,812 3,800 Total fixed maturity securities $ 20,700 $ 20,386 |
Proceeds and Realized Gains and Losses from Fixed Maturity Securities | Proceeds from sales, maturities, calls or redemptions of fixed maturity securities and the related gross realized gains and gross realized losses for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended 2020 2019 Proceeds $ 1,931 $ 1,468 Gross realized gains 43 18 Gross realized losses (20 ) (17 ) |
Investments In Equity Securities | A summary of marketable equity securities at March 31, 2020 and December 31, 2019 is as follows: March 31, 2020 December 31, 2019 Equity securities: Exchange traded funds $ 245 $ 44 Fixed maturity mutual funds 211 643 Common equity securities 32 237 Private equity securities 82 85 Total $ 570 $ 1,009 |
Gains (Losses) Related to Equity Securities | The gains and losses related to equity securities for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31 2020 2019 Net realized (losses) gains recognized on equity securities $ (50 ) $ 79 Less: Net realized gains recognized on equity securities sold during the period (18 ) (21 ) Unrealized (losses) gains recognized on equity securities still held at March 31 $ (68 ) $ 58 |
Securities Lending Programs | The remaining contractual maturity of our securities lending agreements at March 31, 2020 is as follows: Overnight and Continuous Securities lending transactions Cash $ 354 United States Government securities 69 Other securities 4 Total $ 427 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements By Level For Assets Measured At Fair Value On A Recurring Basis | A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019 is as follows: Level I Level II Level III Total March 31, 2020 Assets: Cash equivalents $ 2,363 $ — $ — $ 2,363 Fixed maturity securities, available-for-sale: United States Government securities — 474 — 474 Government sponsored securities — 326 — 326 States, municipalities and political subdivisions, tax-exempt — 4,987 — 4,987 Corporate securities — 8,896 316 9,212 Residential mortgage-backed securities — 3,720 2 3,722 Commercial mortgage-backed securities — 78 — 78 Other securities — 1,582 5 1,587 Total fixed maturity securities, available-for-sale — 20,063 323 20,386 Equity securities: Exchange traded funds 245 — — 245 Fixed maturity mutual funds — 211 — 211 Common equity securities 2 30 — 32 Private equity securities — — 82 82 Total equity securities 247 241 82 570 Securities lending collateral — 426 — 426 Derivatives — 49 — 49 Total assets $ 2,610 $ 20,779 $ 405 $ 23,794 Liabilities: Derivatives $ — $ (5 ) $ — $ (5 ) Total liabilities $ — $ (5 ) $ — $ (5 ) December 31, 2019 Assets: Cash equivalents $ 2,015 $ — $ — $ 2,015 Fixed maturity securities, available-for-sale: United States Government securities — 525 — 525 Government sponsored securities — 141 — 141 States, municipalities and political subdivisions, tax-exempt — 4,851 — 4,851 Corporate securities — 8,882 303 9,185 Residential mortgage-backed securities — 3,730 2 3,732 Commercial mortgage-backed securities — 86 — 86 Other securities — 1,654 7 1,661 Total fixed maturity securities, available-for-sale — 19,869 312 20,181 Equity securities: Exchange traded funds 44 — — 44 Fixed maturity mutual funds — 643 — 643 Common equity securities 206 31 — 237 Private equity securities — — 85 85 Total equity securities 250 674 85 1,009 Securities lending collateral — 353 — 353 Derivatives — 23 — 23 Total assets $ 2,265 $ 20,919 $ 397 $ 23,581 Liabilities: Derivatives $ — $ (1 ) $ — $ (1 ) Total liabilities $ — $ (1 ) $ — $ (1 ) |
Reconciliation Of The Beginning And Ending Balances Of Assets Measured At Fair Value On A Recurring Basis Using Level III Inputs | A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the three months ended March 31, 2020 and 2019 is as follows: Corporate Securities Residential Mortgage- backed Securities Other Securities Equity Securities Total Three Months Ended March 31, 2020 Beginning balance at January 1, 2020 $ 303 $ 2 $ 7 $ 85 $ 397 Total losses: Recognized in net income (2 ) — — (6 ) (8 ) Recognized in accumulated other comprehensive loss (10 ) — — — (10 ) Purchases 26 — — 12 38 Sales (3 ) — — (9 ) (12 ) Settlements (11 ) — (2 ) — (13 ) Transfers into Level III 13 — — — 13 Ending balance at March 31, 2020 $ 316 $ 2 $ 5 $ 82 $ 405 Change in unrealized losses included in net income related to assets still held at March 31, 2020 $ — $ — $ — $ (7 ) $ (7 ) Three Months Ended March 31, 2019 Beginning balance at January 1, 2019 $ 287 $ 6 $ 17 $ 313 $ 623 Total (losses) gains: Recognized in net income (1 ) — — (2 ) (3 ) Recognized in accumulated other comprehensive loss 2 — — — 2 Purchases 33 — 2 7 42 Sales (1 ) — — (21 ) (22 ) Settlements (21 ) — (1 ) — (22 ) Transfers into Level III — — 3 — 3 Transfers out of Level III (2 ) — (7 ) — (9 ) Ending balance at March 31, 2019 $ 297 $ 6 $ 14 $ 297 $ 614 Change in unrealized gains included in net income related to assets still held at March 31, 2019 $ — $ — $ — $ (2 ) $ (2 ) |
Carrying And Fair Values By Level Of Financial Instruments Not Recorded At Fair Value On Consolidated Balance Sheet | A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at March 31, 2020 and December 31, 2019 is as follows: Carrying Value Estimated Fair Value Level I Level II Level III Total March 31, 2020 Assets: Other invested assets $ 4,181 $ — $ — $ 4,181 $ 4,181 Liabilities: Debt: Short-term borrowings 1,075 — 1,075 — 1,075 Senior revolving credit facility 300 — 300 — 300 Commercial paper 1,305 — 1,305 — 1,305 Notes 18,867 — 20,343 — 20,343 Convertible debentures 136 — 680 — 680 December 31, 2019 Assets: Other invested assets $ 4,258 $ — $ — $ 4,258 $ 4,258 Liabilities: Debt: Short-term borrowings 700 — 700 — 700 Commercial paper 400 — 400 — 400 Notes 18,840 — 20,470 — 20,470 Convertible debentures 145 — 904 — 904 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Components of Net Periodic (Benefit Credit) Benefit Cost | The components of net periodic benefit credit included in our consolidated statements of income for the three months ended March 31, 2020 and 2019 are as follows: Pension Benefits Other Benefits Three Months Ended Three Months Ended 2020 2019 2020 2019 Interest cost $ 12 $ 16 $ 3 $ 4 Expected return on assets (40 ) (34 ) (6 ) (5 ) Recognized actuarial loss 6 4 — — Settlement loss 5 2 — — Amortization of prior service credit — — (2 ) (3 ) Net periodic benefit credit $ (17 ) $ (12 ) $ (5 ) $ (4 ) |
Medical Claims Payable (Tables)
Medical Claims Payable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Reconciliation Of The Beginning And Ending Balances For Medical Claims Payable | A reconciliation of the beginning and ending balances for medical claims payable, by segment (see Note 15, “Segment Information”), for the three months ended March 31, 2020 is as follows: Commercial & Specialty Business Government Business Other Total Gross medical claims payable, beginning of period $ 3,039 $ 5,608 $ — $ 8,647 Ceded medical claims payable, beginning of period (14 ) (19 ) — (33 ) Net medical claims payable, beginning of period 3,025 5,589 — 8,614 Business combinations and purchase adjustments — 141 198 339 Net incurred medical claims: Current period 6,090 15,010 130 21,230 Prior periods redundancies (293 ) (407 ) — (700 ) Total net incurred medical claims 5,797 14,603 130 20,530 Net payments attributable to: Current period medical claims 3,908 9,698 138 13,744 Prior periods medical claims 1,875 4,234 — 6,109 Total net payments 5,783 13,932 138 19,853 Net medical claims payable, end of period 3,039 6,401 190 9,630 Ceded medical claims payable, end of period 37 23 — 60 Gross medical claims payable, end of period $ 3,076 $ 6,424 $ 190 $ 9,690 Activity in the Other segment resulted from our acquisition of Beacon. At March 31, 2020 , the total of net incurred but not reported liabilities plus expected development on reported claims for the Commercial & Specialty Business was $94 , $763 and $2,182 for the claim years 2018 and prior, 2019 and 2020, respectively. At March 31, 2020 , the total of net incurred but not reported liabilities plus expected development on reported claims for the Government Business was $63 , $885 and $5,453 for the claim years 2018 and prior, 2019 and 2020, respectively. At March 31, 2020, the total of net incurred but not reported liabilities plus expected development on reported claims for Other was $0 , $0 and $190 for the claim years 2018 and prior, 2019 and 2020, respectively. A reconciliation of the beginning and ending balances for medical claims payable, by segment (see Note 15, “Segment Information”), for the three months ended March 31, 2019 is as follows: Commercial & Specialty Business Government Business Other Total Gross medical claims payable, beginning of period $ 2,586 $ 4,680 $ — $ 7,266 Ceded medical claims payable, beginning of period (10 ) (24 ) — (34 ) Net medical claims payable, beginning of period 2,576 4,656 — 7,232 Net incurred medical claims: Current period 6,053 12,741 — 18,794 Prior periods redundancies (197 ) (258 ) — (455 ) Total net incurred medical claims 5,856 12,483 — 18,339 Net payments attributable to: Current period medical claims 3,898 8,265 — 12,163 Prior periods medical claims 1,766 3,648 — 5,414 Total net payments 5,664 11,913 — 17,577 Net medical claims payable, end of period 2,768 5,226 — 7,994 Ceded medical claims payable, end of period 8 26 — 34 Gross medical claims payable, end of period $ 2,776 $ 5,252 $ — $ 8,028 |
Reconciliation of Net Incurred Medical Claims to Benefit Expense | The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for periods in 2020 are as follows: Three Months Ended Three Months Ended Net incurred medical claims: Commercial & Specialty Business $ 5,797 $ 5,856 Government Business 14,603 12,483 Other 130 — Total net incurred medical claims 20,530 18,339 Quality improvement and other claims expense 959 943 Benefit expense $ 21,489 $ 19,282 |
Reconciliation of Short Duration Medical Claims Payable to the Consolidated Medical Claims Payable | The reconciliation of the medical claims payable reflected in the tables above to the consolidated ending balance for medical claims payable included in the consolidated balance sheet, as of March 31, 2020 , is as follows: Commercial & Specialty Business Government Business Other Total Net medical claims payable, end of period $ 3,039 $ 6,401 $ 190 $ 9,630 Ceded medical claims payable, end of period 37 23 — 60 Insurance lines other than short duration — 212 — 212 Gross medical claims payable, end of period $ 3,076 $ 6,636 $ 190 $ 9,902 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Debenture Terms | The following table summarizes at March 31, 2020 the related balances, conversion rate and conversion price of the Debentures: Outstanding principal amount $ 202 Unamortized debt discount $ 64 Net debt carrying amount $ 136 Equity component carrying amount $ 73 Conversion rate (shares of common stock per $1,000 of principal amount) 13.9862 Effective conversion price (per $1,000 of principal amount) $ 71.4990 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Capital [Abstract] | |
Summary of Cash Dividend Activity | A summary of the cash dividend activity for the three months ended March 31, 2020 and 2019 is as follows: Declaration Date Record Date Payment Date Cash Dividend per Share Total Three Months Ended March 31, 2020 January 28, 2020 March 16, 2020 March 27, 2020 $0.95 $ 240 Three Months Ended March 31, 2019 January 29, 2019 March 18, 2019 March 29, 2019 $0.80 $ 206 |
Summary of Share Repurchases | A summary of common stock repurchases for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended March 31 2020 2019 Shares repurchased 1.9 1.1 Average price per share $ 275.38 $ 275.23 Aggregate cost $ 529 $ 294 Authorization remaining at the end of the period $ 3,263 $ 5,199 |
Summary of Stock Option Activity | A summary of stock option activity for the three months ended March 31, 2020 is as follows: Number of Shares Weighted- Average Option Price per Share Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at January 1, 2020 3.1 $ 190.31 Granted 1.0 271.27 Exercised (0.3 ) 107.46 Forfeited or expired — 256.05 Outstanding at March 31, 2020 3.8 216.40 7.15 $ 139 Exercisable at March 31, 2020 2.2 171.44 5.57 $ 139 |
Summary of Nonvested Restricted Stock Activity Including Restricted Stock Units | A summary of the nonvested restricted stock activity, including restricted stock units, for the three months ended March 31, 2020 is as follows: Restricted Stock Shares and Units Weighted- Average Grant Date Fair Value per Share Nonvested at January 1, 2020 1.4 $ 242.47 Granted 1.2 272.03 Vested (1.1 ) 193.23 Forfeited (0.1 ) 264.40 Nonvested at March 31, 2020 1.4 271.00 |
Summary of Weighted-Average Assumptions Used to Estimate the Fair Value of Options Granted During the Periods | The following weighted-average assumptions were used to estimate the fair values of options granted during the three months ended March 31, 2020 and 2019 : Three Months Ended March 31 2020 2019 Risk-free interest rate 1.30 % 2.69 % Volatility factor 26.00 % 25.00 % Quarterly dividend yield 0.350 % 0.260 % Weighted-average expected life (years) 4.30 4.40 |
Schedule of Weighted-Average Fair Values Determined for the Periods | The following weighted-average fair values per option or share were determined for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31 2020 2019 Options granted during the period $ 54.03 $ 68.92 Restricted stock awards granted during the period 272.03 307.59 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components Of Accumulated Other Comprehensive Loss | A reconciliation of the components of accumulated other comprehensive loss at March 31, 2020 and 2019 is as follows: March 31 2020 2019 Investments: Gross unrealized gains $ 510 $ 379 Gross unrealized losses (729 ) (121 ) Net pre-tax unrealized (losses) gains (219 ) 258 Deferred tax asset (liability) 51 (61 ) Net unrealized (losses) gains on investments (168 ) 197 Non-credit components of impairments on investments: Unrealized losses (44 ) (3 ) Deferred tax asset 10 1 Net unrealized non-credit component of impairments on investments (34 ) (2 ) Cash flow hedges: Gross unrealized losses (327 ) (308 ) Deferred tax asset 68 65 Net unrealized losses on cash flow hedges (259 ) (243 ) Defined benefit pension plans: Deferred net actuarial loss (724 ) (744 ) Deferred prior service credits — (1 ) Deferred tax asset 185 191 Net unrecognized periodic benefit costs for defined benefit pension plans (539 ) (554 ) Postretirement benefit plans: Deferred net actuarial loss (25 ) (57 ) Deferred prior service costs 18 31 Deferred tax asset 2 7 Net unrecognized periodic benefit costs for postretirement benefit plans (5 ) (19 ) Foreign currency translation adjustments: Gross unrealized losses (4 ) (3 ) Deferred tax asset 1 1 Net unrealized losses on foreign currency translation adjustments (3 ) (2 ) Accumulated other comprehensive loss $ (1,008 ) $ (623 ) |
Other Comprehensive Income (Loss) Reclassification Adjustments | Other comprehensive income (loss) reclassification adjustments for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31 2020 2019 Investments: Net holding (loss) gain on investment securities arising during the period, net of tax benefit (expense) of $213 and $(98), respectively $ (716 ) $ 350 Reclassification adjustment for net realized gains on investment securities, net of tax benefit of $7 and $2, respectively 27 7 Total reclassification adjustment on investments (689 ) 357 Non-credit component of impairments on investments: Non-credit component of impairments on investments, net of tax benefit of $9 (32 ) — Cash flow hedges: Holding gain, net of tax expense of ($1) and ($0), respectively 3 3 Other: Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax expense of ($3) and ($1), respectively 7 3 Foreign currency translation adjustment, net of tax expense of ($0) and ($0), respectively (1 ) — Net (loss) gain recognized in other comprehensive income, net of tax benefit (expense) of $211 and $(101), respectively $ (712 ) $ 363 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Denominator for Basic and Diluted Earnings Per Share | The denominator for basic and diluted earnings per share for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended 2020 2019 Denominator for basic earnings per share – weighted-average shares 252.4 257.1 Effect of dilutive securities – employee stock options, nonvested restricted stock awards and convertible debentures 4.0 5.2 Denominator for diluted earnings per share 256.4 262.3 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial Data By Reportable Segment | Financial data by reportable segment for the three months ended March 31, 2020 and 2019 is as follows: Commercial & Specialty Business Government Business IngenioRx Other Eliminations Total Three Months Ended March 31, 2020 Operating revenue - unaffiliated $ 9,361 $ 17,466 $ 2,344 $ 277 $ — $ 29,448 Operating revenue - affiliated — — 2,853 750 (3,603 ) — Operating gain 1,420 411 349 14 — 2,194 Three Months Ended March 31, 2019 Operating revenue - unaffiliated $ 9,392 $ 14,925 $ — $ 71 $ — $ 24,388 Operating revenue - affiliated — — — 477 (477 ) — Operating gain (loss) 1,598 374 — (32 ) — 1,940 |
Major Product Revenue by Segment | The major product revenues for each of the reportable segments for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended 2020 2019 Commercial & Specialty Business Managed care products $ 7,569 $ 7,618 Managed care services 1,381 1,366 Dental/Vision products and services 315 323 Other 96 85 Total Commercial & Specialty Business 9,361 9,392 Government Business Managed care products 17,375 14,821 Managed care services 91 104 Total Government Business 17,466 14,925 IngenioRx Pharmacy products and services 5,197 — Total IngenioRx 5,197 — Other Other 1,027 548 Eliminations Eliminations (3,603 ) (477 ) Total product revenues $ 29,448 $ 24,388 |
Reconciliation Of Reportable Segments Operating Revenues To Total Revenues Reported In The Consolidated Statements Of Income | A reconciliation of reportable segments’ operating revenue to the amounts of total revenues included in our consolidated statements of income for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended 2020 2019 Reportable segments’ operating revenue $ 29,448 $ 24,388 Net investment income 254 210 Net realized (losses) gains on financial instruments (24 ) 78 Impairment losses recognized in income (57 ) (10 ) Total revenues $ 29,621 $ 24,666 |
Reconciliation Of Reportable Segments Operating Gain To Income Before Income Tax Expense Included In The Consolidated Statements Of Income | A reconciliation of reportable segments’ operating gain to income before income tax expense included in our consolidated statements of income for the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended 2020 2019 Reportable segments’ operating gain $ 2,194 $ 1,940 Net investment income 254 210 Net realized (losses) gains on financial instruments (24 ) 78 Impairment losses recognized in income (57 ) (10 ) Interest expense (194 ) (187 ) Amortization of other intangible assets (83 ) (87 ) (Loss) gain on extinguishment of debt (1 ) 1 Income before income tax expense $ 2,089 $ 1,945 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | The information related to our leases is as follows: Balance Sheet Location March 31, 2020 December 31, 2019 Operating Leases Right-of-use assets Other noncurrent assets $ 915 $ 575 Lease liabilities, current Other current liabilities 195 158 Lease liabilities, noncurrent Other noncurrent liabilities 801 482 Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Lease Expense Operating lease expense $ 47 $ 45 Short-term lease expense 13 12 Sublease income (3 ) (4 ) Total lease expense $ 57 $ 53 Other information Operating cash paid for amounts included in the measurement of lease liabilities, operating leases $ 44 $ 44 Right-of-use assets obtained in exchange for new lease liabilities, operating leases $ 323 $ — Weighted average remaining lease term, operating leases 7.2 years 6.5 years Weighted average discount rate, operating leases 3.57 % 3.97 % |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At March 31, 2020 , future lease payments for noncancellable operating leases with initial or remaining terms of one year or more are as follows: 2020 (excluding the three months ended March 31, 2020) $ 140 2021 178 2022 161 2023 140 2024 110 Thereafter 288 Total future minimum payments 1,017 Less imputed interest (21 ) Total lease liabilities $ 996 |
Organization (Details)
Organization (Details) medical_member in Millions | Mar. 31, 2020medical_membercountystates |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Medical Members | medical_member | 42 |
Number of counties in the Kansas City area the Company does not serve | county | 30 |
Number of states in which the Company is licensed to conduct insurance operations | states | 50 |
Basis of Presentation and Signf
Basis of Presentation and Signficant Accounting Policies Basis of Presentation and Significant Acconting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Mar. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ (35) | $ (35) | $ 26 | |
Customer funds and cash and cash equivalents on deposit for regulatory requirements | $ 221 | $ 215 | ||
Securities lending transactions, initial collateral percentage value | 102.00% | 102.00% | ||
Premium receivable, allowance for doubtful Accounts | $ 234 | $ 237 | ||
Self-funded receivables, allowance for doubtful accounts | 55 | 46 | ||
Allowance for doubtful accounts, Other Receivables, current | $ 282 | $ 242 |
Business Acquisitions Business
Business Acquisitions Business Acquisition (Assets Liabilities Acquired) (Details) individual_member in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)individual_memberstates | Dec. 31, 2019USD ($) | |
Business Acquisition [Line Items] | ||
Goodwill | $ 21,661 | $ 20,500 |
Number of States in which Company Operates | states | 50 | |
Beacon Health Options [Member] | ||
Business Acquisition [Line Items] | ||
Number Of Lives Served | individual_member | 34 | |
Number of States in which Company Operates | states | 50 | |
Beacon Health Options [Member] | Government Business Segment [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill | $ 1,049 | |
Other intangible assets | $ 752 | |
Minimum [Member] | Beacon Health Options [Member] | Government Business Segment [Member] | Customer relationships and provider networks | ||
Business Acquisition [Line Items] | ||
Intangible assets amortization period, years | 9 years | |
Maximum [Member] | Beacon Health Options [Member] | Government Business Segment [Member] | Customer relationships and provider networks | ||
Business Acquisition [Line Items] | ||
Intangible assets amortization period, years | 21 years |
Investments (Current And Long-T
Investments (Current And Long-Term Fixed Maturity Securities, Available-For-Sale) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Investments [Line Items] | |||
Gross Unrealized Gains | $ 510 | $ 379 | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 51 | $ 0 | |
Corporate Securities [Member] | |||
Investments [Line Items] | |||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
Fixed Maturities [Member] | |||
Investments [Line Items] | |||
Cost or Amortized Cost | 20,700 | 19,508 | |
Gross Unrealized Gains | 510 | 720 | |
Gross Unrealized Losses, Less than 12 Months | (707) | (24) | |
Gross Unrealized Losses, 12 Months or Greater | (66) | (23) | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | (51) | 0 | |
Available-for-sale Securities | 20,386 | 20,181 | |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | (44) | (3) | |
Fixed Maturities [Member] | United States Government Securities [Member] | |||
Investments [Line Items] | |||
Cost or Amortized Cost | 450 | 524 | |
Gross Unrealized Gains | 24 | 4 | |
Gross Unrealized Losses, Less than 12 Months | 0 | (3) | |
Gross Unrealized Losses, 12 Months or Greater | 0 | 0 | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | |
Available-for-sale Securities | 474 | 525 | |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 | |
Fixed Maturities [Member] | Government Sponsored Securities [Member] | |||
Investments [Line Items] | |||
Cost or Amortized Cost | 369 | 136 | |
Gross Unrealized Gains | 5 | 5 | |
Gross Unrealized Losses, Less than 12 Months | (48) | 0 | |
Gross Unrealized Losses, 12 Months or Greater | 0 | 0 | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | |
Available-for-sale Securities | 326 | 141 | |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 | |
Fixed Maturities [Member] | States, Municipalities And Political Subdivisions [Member] | |||
Investments [Line Items] | |||
Cost or Amortized Cost | 4,768 | 4,592 | |
Gross Unrealized Gains | 233 | 262 | |
Gross Unrealized Losses, Less than 12 Months | (14) | (3) | |
Gross Unrealized Losses, 12 Months or Greater | 0 | 0 | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | |
Available-for-sale Securities | 4,987 | 4,851 | |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 | |
Fixed Maturities [Member] | Corporate Securities [Member] | |||
Investments [Line Items] | |||
Cost or Amortized Cost | 9,609 | 8,870 | |
Gross Unrealized Gains | 148 | 339 | |
Gross Unrealized Losses, Less than 12 Months | (450) | (9) | |
Gross Unrealized Losses, 12 Months or Greater | (44) | (15) | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | (51) | 0 | |
Available-for-sale Securities | 9,212 | 9,185 | |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | (44) | (3) | |
Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | |||
Investments [Line Items] | |||
Cost or Amortized Cost | 3,731 | 3,654 | |
Gross Unrealized Gains | 93 | 87 | |
Gross Unrealized Losses, Less than 12 Months | (95) | (6) | |
Gross Unrealized Losses, 12 Months or Greater | (7) | (3) | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | |
Available-for-sale Securities | 3,722 | 3,732 | |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 | |
Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | |||
Investments [Line Items] | |||
Cost or Amortized Cost | 81 | 84 | |
Gross Unrealized Gains | 1 | 2 | |
Gross Unrealized Losses, Less than 12 Months | (3) | 0 | |
Gross Unrealized Losses, 12 Months or Greater | (1) | 0 | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | |
Available-for-sale Securities | 78 | 86 | |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 | |
Fixed Maturities [Member] | Other Securities [Member] | |||
Investments [Line Items] | |||
Cost or Amortized Cost | 1,692 | 1,648 | |
Gross Unrealized Gains | 6 | 21 | |
Gross Unrealized Losses, Less than 12 Months | (97) | (3) | |
Gross Unrealized Losses, 12 Months or Greater | (14) | (5) | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | |
Available-for-sale Securities | 1,587 | 1,661 | |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | $ 0 | $ 0 |
Investments (Aggregate Fair Val
Investments (Aggregate Fair Value And Gross Unrealized Loss Of Fixed Maturity Securities In An Unrealized Loss Position) (Details) - Fixed Maturities [Member] $ in Millions | Mar. 31, 2020USD ($)securities | Dec. 31, 2019USD ($)securities |
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 4,428 | 1,029 |
Estimated fair value, less than 12 months | $ 8,122 | $ 2,179 |
Gross unrealized loss, less than 12 months | $ (707) | $ (24) |
Number of securities, 12 months or greater | securities | 298 | 549 |
Estimated fair value, 12 months or greater | $ 385 | $ 902 |
Gross unrealized loss, 12 months or greater | $ (66) | $ (23) |
United States Government Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 1 | 27 |
Estimated fair value, less than 12 months | $ 0 | $ 250 |
Gross unrealized loss, less than 12 months | $ 0 | $ (3) |
Number of securities, 12 months or greater | securities | 0 | 2 |
Estimated fair value, 12 months or greater | $ 0 | $ 1 |
Gross unrealized loss, 12 months or greater | $ 0 | $ 0 |
Government Sponsored Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 278 | 14 |
Estimated fair value, less than 12 months | $ 224 | $ 12 |
Gross unrealized loss, less than 12 months | $ (48) | $ 0 |
Number of securities, 12 months or greater | securities | 1 | 3 |
Estimated fair value, 12 months or greater | $ 0 | $ 1 |
Gross unrealized loss, 12 months or greater | $ 0 | $ 0 |
States, Municipalities And Political Subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 239 | 114 |
Estimated fair value, less than 12 months | $ 509 | $ 306 |
Gross unrealized loss, less than 12 months | $ (14) | $ (3) |
Number of securities, 12 months or greater | securities | 3 | 14 |
Estimated fair value, 12 months or greater | $ 4 | $ 11 |
Gross unrealized loss, 12 months or greater | $ 0 | $ 0 |
Corporate Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 2,773 | 386 |
Estimated fair value, less than 12 months | $ 5,003 | $ 558 |
Gross unrealized loss, less than 12 months | $ (450) | $ (9) |
Number of securities, 12 months or greater | securities | 170 | 224 |
Estimated fair value, 12 months or greater | $ 176 | $ 286 |
Gross unrealized loss, 12 months or greater | $ (44) | $ (15) |
Residential Mortgage-Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 603 | 321 |
Estimated fair value, less than 12 months | $ 1,182 | $ 635 |
Gross unrealized loss, less than 12 months | $ (95) | $ (6) |
Number of securities, 12 months or greater | securities | 63 | 189 |
Estimated fair value, 12 months or greater | $ 57 | $ 237 |
Gross unrealized loss, 12 months or greater | $ (7) | $ (3) |
Commercial Mortgage-Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 14 | 1 |
Estimated fair value, less than 12 months | $ 29 | $ 3 |
Gross unrealized loss, less than 12 months | $ (3) | $ 0 |
Number of securities, 12 months or greater | securities | 3 | 4 |
Estimated fair value, 12 months or greater | $ 6 | $ 8 |
Gross unrealized loss, 12 months or greater | $ (1) | $ 0 |
Other Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 520 | 166 |
Estimated fair value, less than 12 months | $ 1,175 | $ 415 |
Gross unrealized loss, less than 12 months | $ (97) | $ (3) |
Number of securities, 12 months or greater | securities | 58 | 113 |
Estimated fair value, 12 months or greater | $ 142 | $ 358 |
Gross unrealized loss, 12 months or greater | $ (14) | $ (5) |
Investments (Allowance For Cred
Investments (Allowance For Credit Loss Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | $ 51 | $ 0 |
Corporate Securities [Member] | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss, Not Previously Recorded | $ 51 | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | $ 0 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Fixed Maturity Securities, By Contractual Maturity) (Details) - Fixed Maturities [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Due in one year or less, Amortized Cost | $ 520 | |
Due after one year through five years, Amortized Cost | 5,730 | |
Due after five years through ten years, Amortized Cost | 6,035 | |
Due after ten years, Amortized Cost | 4,603 | |
Mortgage-backed securities, Amortized Cost | 3,812 | |
Available-for-sale securities, Amortized Cost | 20,700 | $ 19,508 |
Due in one year or less, Estimated Fair Value | 511 | |
Due after one year through five years, Estimated Fair Value | 5,583 | |
Due after five years through ten years, Estimated Fair Value | 5,882 | |
Due after ten years, Estimated Fair Value | 4,610 | |
Mortgage-backed securities, Estimated Fair Value | 3,800 | |
Available-for-sale securities, Estimated Fair Value | $ 20,386 | $ 20,181 |
Investments (Proceeds and Reali
Investments (Proceeds and Realized Gains Losses From Fixed Maturity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fixed Maturity Securities, Available-for-sale [Line Items] | ||
Proceeds | $ 1,931 | $ 1,468 |
Gross realized gains | 43 | 18 |
Gross realized losses | $ (20) | $ (17) |
Investments (Current and Long_2
Investments (Current and Long-term Equity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Equity Securities | $ 570 | $ 1,009 |
Exchange Traded Funds [Member] | ||
Marketable Securities [Line Items] | ||
Equity Securities | 245 | 44 |
Fixed Maturity Mutual Funds [Member] | ||
Marketable Securities [Line Items] | ||
Equity Securities | 211 | 643 |
Common Equity Securities [Member] | ||
Marketable Securities [Line Items] | ||
Equity Securities | 32 | 237 |
Private Equity Funds [Member] | ||
Marketable Securities [Line Items] | ||
Equity Securities | $ 82 | $ 85 |
Investments (Gains and Losses R
Investments (Gains and Losses Recognized on Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of losses and gains related to equity securities [Line Items] | ||
Net realized (losses) gains on financial instruments | $ (24) | $ 78 |
Equity Securities [Member] | ||
Schedule of losses and gains related to equity securities [Line Items] | ||
Net realized (losses) gains on financial instruments | (50) | 79 |
Less: Net realized gains recognized on sale of equity securities during the period | (18) | (21) |
Unrealized (losses) gains recognized on equity securities still held | $ (68) | $ 58 |
Investments (Securities Lending
Investments (Securities Lending Programs) (Details) - Overnight and Continuous [Member] $ in Millions | Mar. 31, 2020USD ($) |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Collateral received for securities loaned, at carrying value | $ 427 |
Cash [Member] | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Collateral received for securities loaned, at carrying value | 354 |
United States Government Securities [Member] | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Collateral received for securities loaned, at carrying value | 69 |
Other Securities [Member] | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Collateral received for securities loaned, at carrying value | $ 4 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | ||
Accrued investment income receivable | $ 166 | $ 173 |
Fair value of collateral received at time of securities lending transactions | $ 427 | $ 351 |
Securities Lending Transactions Ratio of Fair Value of Collateral Held To Securities On Loan | 103.00% | 103.00% |
Securities lending transactions, initial collateral percentage value | 102.00% | 102.00% |
Derivative Financial Instrume_2
Derivative Financial Instruments (Financial Statement Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | $ (259) | $ (243) | |
Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | $ 259 | $ 262 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurements By Level For Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 2,363 | $ 2,015 |
Equity Securities | 570 | 1,009 |
Securities lending collateral | 426 | 353 |
Total assets | 23,794 | 23,581 |
Total liabilities | (5) | (1) |
Exchange Traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 245 | 44 |
Fixed Maturity Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 211 | 643 |
Common Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 32 | 237 |
Private Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 82 | 85 |
Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 20,386 | 20,181 |
Fixed Maturities [Member] | United States Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 474 | 525 |
Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 326 | 141 |
Fixed Maturities [Member] | States, Municipalities And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4,987 | 4,851 |
Fixed Maturities [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 9,212 | 9,185 |
Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,722 | 3,732 |
Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 78 | 86 |
Fixed Maturities [Member] | Other Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,587 | 1,661 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 570 | 1,009 |
Equity Securities [Member] | Exchange Traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 245 | 44 |
Equity Securities [Member] | Fixed Maturity Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 211 | 643 |
Equity Securities [Member] | Common Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 32 | 237 |
Equity Securities [Member] | Private Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 82 | 85 |
Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 49 | 23 |
Derivative liabilities | (5) | (1) |
Level I [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,363 | 2,015 |
Securities lending collateral | 0 | 0 |
Total assets | 2,610 | 2,265 |
Total liabilities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | United States Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | States, Municipalities And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | Other Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 247 | 250 |
Level I [Member] | Equity Securities [Member] | Exchange Traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 245 | 44 |
Level I [Member] | Equity Securities [Member] | Fixed Maturity Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level I [Member] | Equity Securities [Member] | Common Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 2 | 206 |
Level I [Member] | Equity Securities [Member] | Private Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level I [Member] | Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level II [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Securities lending collateral | 426 | 353 |
Total assets | 20,779 | 20,919 |
Total liabilities | (5) | (1) |
Level II [Member] | Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 20,063 | 19,869 |
Level II [Member] | Fixed Maturities [Member] | United States Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 474 | 525 |
Level II [Member] | Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 326 | 141 |
Level II [Member] | Fixed Maturities [Member] | States, Municipalities And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4,987 | 4,851 |
Level II [Member] | Fixed Maturities [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 8,896 | 8,882 |
Level II [Member] | Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,720 | 3,730 |
Level II [Member] | Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 78 | 86 |
Level II [Member] | Fixed Maturities [Member] | Other Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,582 | 1,654 |
Level II [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 241 | 674 |
Level II [Member] | Equity Securities [Member] | Exchange Traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level II [Member] | Equity Securities [Member] | Fixed Maturity Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 211 | 643 |
Level II [Member] | Equity Securities [Member] | Common Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 30 | 31 |
Level II [Member] | Equity Securities [Member] | Private Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level II [Member] | Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 49 | 23 |
Derivative liabilities | (5) | (1) |
Level III [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Securities lending collateral | 0 | 0 |
Total assets | 405 | 397 |
Total liabilities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 323 | 312 |
Level III [Member] | Fixed Maturities [Member] | United States Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | States, Municipalities And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 316 | 303 |
Level III [Member] | Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2 | 2 |
Level III [Member] | Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | Other Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5 | 7 |
Level III [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 82 | 85 |
Level III [Member] | Equity Securities [Member] | Exchange Traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level III [Member] | Equity Securities [Member] | Fixed Maturity Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level III [Member] | Equity Securities [Member] | Common Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level III [Member] | Equity Securities [Member] | Private Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 82 | 85 |
Level III [Member] | Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Fair Value (Reconciliation Of T
Fair Value (Reconciliation Of The Beginning And Ending Balances Of Assets Measured At Fair Value On A Recurring Basis Using Level III Inputs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 397 | $ 623 |
Total gains (losses) recognized in net income | (8) | (3) |
Total gains (losses) recognized in accumulated other comprehensive loss | (10) | 2 |
Purchases | 38 | 42 |
Sales | (12) | (22) |
Settlements | (13) | (22) |
Transfers into Level III | 13 | 3 |
Transfers out of Level III | (9) | |
Ending balance | 405 | 614 |
Change in unrealized gains (losses) included in net income related to assets still held | (7) | (2) |
Corporate Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 303 | 287 |
Total gains (losses) recognized in net income | (2) | (1) |
Total gains (losses) recognized in accumulated other comprehensive loss | (10) | 2 |
Purchases | 26 | 33 |
Sales | (3) | (1) |
Settlements | (11) | (21) |
Transfers into Level III | 13 | 0 |
Transfers out of Level III | (2) | |
Ending balance | 316 | 297 |
Change in unrealized gains (losses) included in net income related to assets still held | 0 | 0 |
Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 2 | 6 |
Total gains (losses) recognized in net income | 0 | 0 |
Total gains (losses) recognized in accumulated other comprehensive loss | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | |
Ending balance | 2 | 6 |
Change in unrealized gains (losses) included in net income related to assets still held | 0 | 0 |
Other Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 7 | 17 |
Total gains (losses) recognized in net income | 0 | 0 |
Total gains (losses) recognized in accumulated other comprehensive loss | 0 | 0 |
Purchases | 0 | 2 |
Sales | 0 | 0 |
Settlements | (2) | (1) |
Transfers into Level III | 0 | 3 |
Transfers out of Level III | (7) | |
Ending balance | 5 | 14 |
Change in unrealized gains (losses) included in net income related to assets still held | 0 | 0 |
Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 85 | 313 |
Total gains (losses) recognized in net income | (6) | (2) |
Total gains (losses) recognized in accumulated other comprehensive loss | 0 | 0 |
Purchases | 12 | 7 |
Sales | (9) | (21) |
Settlements | 0 | 0 |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | |
Ending balance | 82 | 297 |
Change in unrealized gains (losses) included in net income related to assets still held | $ (7) | $ (2) |
Fair Value (Carrying And Estima
Fair Value (Carrying And Estimated Fair Values by Level Of Financial Instruments Not Recorded At Fair Value On Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | $ 4,181 | $ 4,258 |
Short-term borrowings | 1,075 | 700 |
Senior revolving credit facility | 300 | |
Commercial paper | 1,305 | 400 |
Notes | 20,343 | 20,470 |
Convertible debentures | 680 | 904 |
Fair Value, Recurring [Member] | Level III [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 4,181 | 4,258 |
Short-term borrowings | 0 | 0 |
Senior revolving credit facility | 0 | |
Commercial paper | 0 | 0 |
Notes | 0 | 0 |
Convertible debentures | 0 | 0 |
Fair Value, Recurring [Member] | Level II [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | 0 |
Short-term borrowings | 1,075 | 700 |
Senior revolving credit facility | 300 | |
Commercial paper | 1,305 | 400 |
Notes | 20,343 | 20,470 |
Convertible debentures | 680 | 904 |
Fair Value, Recurring [Member] | Level I [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 0 | 0 |
Short-term borrowings | 0 | 0 |
Senior revolving credit facility | 0 | |
Commercial paper | 0 | 0 |
Notes | 0 | 0 |
Convertible debentures | 0 | 0 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 4,181 | 4,258 |
Short-term borrowings | 1,075 | 700 |
Senior revolving credit facility | 300 | |
Commercial paper | 1,305 | 400 |
Notes | 18,867 | 18,840 |
Convertible debentures | $ 136 | $ 145 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 566 | $ 394 | |
Effective tax rate | 27.10% | 20.30% | |
Income taxes payable | $ 159 | ||
Income taxes receivable | $ 335 |
Retirement Benefits (Components
Retirement Benefits (Components Of Net Periodic (Benefit Credit) Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 12 | $ 16 |
Expected return on assets | (40) | (34) |
Recognized actuarial loss | 6 | 4 |
Settlement loss | 5 | 2 |
Amortization of prior service cost (credit) | 0 | 0 |
Net periodic benefit credit | (17) | (12) |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 3 | 4 |
Expected return on assets | (6) | (5) |
Recognized actuarial loss | 0 | 0 |
Settlement loss | 0 | 0 |
Amortization of prior service cost (credit) | (2) | (3) |
Net periodic benefit credit | $ (5) | $ (4) |
Medical Claims Payable (Reconci
Medical Claims Payable (Reconciliation Of The Beginning And Ending Balances For Medical Claims Payable By Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Medical Claims Payable [Line Items] | ||
Gross medical claims payable, beginning of period | $ 8,647 | $ 7,266 |
Ceded medical claims payable, beginning of period | (33) | (34) |
Net medical claims payable, beginning of period | 8,614 | 7,232 |
Business combinations and purchase adjustments | 339 | |
Current period net incurred medical claims | 21,230 | 18,794 |
Prior periods redundancies | (700) | (455) |
Total net incurred medical claims | 20,530 | 18,339 |
Net payments attributable to current period medical claims | 13,744 | 12,163 |
Net payments attributable to prior periods medical claims | 6,109 | 5,414 |
Total net payments | 19,853 | 17,577 |
Short duration contract liability for unpaid claims and adjustment expense, Net | 9,630 | 7,994 |
Ceded medical claims payable, end of period | 60 | 34 |
Gross medical claims payable, end of period | 9,690 | 8,028 |
Commercial Specialty Business Segment [Member] | ||
Medical Claims Payable [Line Items] | ||
Gross medical claims payable, beginning of period | 3,039 | 2,586 |
Ceded medical claims payable, beginning of period | (14) | (10) |
Net medical claims payable, beginning of period | 3,025 | 2,576 |
Business combinations and purchase adjustments | 0 | |
Current period net incurred medical claims | 6,090 | 6,053 |
Prior periods redundancies | (293) | (197) |
Total net incurred medical claims | 5,797 | 5,856 |
Net payments attributable to current period medical claims | 3,908 | 3,898 |
Net payments attributable to prior periods medical claims | 1,875 | 1,766 |
Total net payments | 5,783 | 5,664 |
Short duration contract liability for unpaid claims and adjustment expense, Net | 3,039 | 2,768 |
Ceded medical claims payable, end of period | 37 | 8 |
Gross medical claims payable, end of period | 3,076 | 2,776 |
Government Business Segment [Member] | ||
Medical Claims Payable [Line Items] | ||
Gross medical claims payable, beginning of period | 5,608 | 4,680 |
Ceded medical claims payable, beginning of period | (19) | (24) |
Net medical claims payable, beginning of period | 5,589 | 4,656 |
Business combinations and purchase adjustments | 141 | |
Current period net incurred medical claims | 15,010 | 12,741 |
Prior periods redundancies | (407) | (258) |
Total net incurred medical claims | 14,603 | 12,483 |
Net payments attributable to current period medical claims | 9,698 | 8,265 |
Net payments attributable to prior periods medical claims | 4,234 | 3,648 |
Total net payments | 13,932 | 11,913 |
Short duration contract liability for unpaid claims and adjustment expense, Net | 6,401 | 5,226 |
Ceded medical claims payable, end of period | 23 | 26 |
Gross medical claims payable, end of period | 6,424 | 5,252 |
Other Segment [Member] | ||
Medical Claims Payable [Line Items] | ||
Gross medical claims payable, beginning of period | 0 | 0 |
Ceded medical claims payable, beginning of period | 0 | 0 |
Net medical claims payable, beginning of period | 0 | 0 |
Business combinations and purchase adjustments | 198 | |
Current period net incurred medical claims | 130 | 0 |
Prior periods redundancies | 0 | 0 |
Total net incurred medical claims | 130 | 0 |
Net payments attributable to current period medical claims | 138 | 0 |
Net payments attributable to prior periods medical claims | 0 | 0 |
Total net payments | 138 | 0 |
Short duration contract liability for unpaid claims and adjustment expense, Net | 190 | 0 |
Ceded medical claims payable, end of period | 0 | 0 |
Gross medical claims payable, end of period | $ 190 | $ 0 |
Medical Claims Payable (Recon_2
Medical Claims Payable (Reconciliation Of Net Incurred Medical Claims To Benefit Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of net incurred medical claims to benefit expense [Line Items] | ||
Total net incurred medical claims | $ 20,530 | $ 18,339 |
Quality improvement and other claims expense | 959 | 943 |
Benefit expense | 21,489 | 19,282 |
Commercial Specialty Business Segment [Member] | ||
Reconciliation of net incurred medical claims to benefit expense [Line Items] | ||
Total net incurred medical claims | 5,797 | 5,856 |
Government Business Segment [Member] | ||
Reconciliation of net incurred medical claims to benefit expense [Line Items] | ||
Total net incurred medical claims | 14,603 | 12,483 |
Other Segment [Member] | ||
Reconciliation of net incurred medical claims to benefit expense [Line Items] | ||
Total net incurred medical claims | $ 130 | $ 0 |
Medical Claims Payable Medical
Medical Claims Payable Medical Claims Payable (Reconciliation of the Claims Development to the Claims Liability) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net medical claims payable, end of period | $ 9,630 | $ 8,614 | $ 7,232 | |
Ceded medical claims payable end of period | 60 | 33 | $ 34 | 34 |
Insurance lines other than short duration | 212 | |||
Gross medical claims payable, end of period | 9,902 | 8,842 | ||
Commercial Specialty Business Segment [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net medical claims payable, end of period | 3,039 | 3,025 | 2,576 | |
Ceded medical claims payable end of period | 37 | 14 | 8 | 10 |
Insurance lines other than short duration | 0 | |||
Gross medical claims payable, end of period | 3,076 | |||
Government Business Segment [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net medical claims payable, end of period | 6,401 | 5,589 | 4,656 | |
Ceded medical claims payable end of period | 23 | 19 | 26 | 24 |
Insurance lines other than short duration | 212 | |||
Gross medical claims payable, end of period | 6,636 | |||
Other Segment [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net medical claims payable, end of period | 190 | 0 | 0 | |
Ceded medical claims payable end of period | 0 | $ 0 | $ 0 | $ 0 |
Insurance lines other than short duration | 0 | |||
Gross medical claims payable, end of period | $ 190 |
Medical Claims Payable (Narrati
Medical Claims Payable (Narrative) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Short-duration Insurance Contracts, Accident Year 2018 and Prior Member] | Commercial Specialty Business Segment [Member] | |
Claims Development [Line Items] | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 94 |
Short-duration Insurance Contracts, Accident Year 2018 and Prior Member] | Government Business Segment [Member] | |
Claims Development [Line Items] | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 63 |
Short-duration Insurance Contracts, Accident Year 2018 and Prior Member] | Other Segment [Member] | |
Claims Development [Line Items] | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 |
Short-Duration Insurance Contract, Accident Year 2019 [Member] | Commercial Specialty Business Segment [Member] | |
Claims Development [Line Items] | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 763 |
Short-Duration Insurance Contract, Accident Year 2019 [Member] | Government Business Segment [Member] | |
Claims Development [Line Items] | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 885 |
Short-Duration Insurance Contract, Accident Year 2019 [Member] | Other Segment [Member] | |
Claims Development [Line Items] | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 |
Short-duration Insurance Contract, Accident Year 2020 [Member] | Commercial Specialty Business Segment [Member] | |
Claims Development [Line Items] | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,182 |
Short-duration Insurance Contract, Accident Year 2020 [Member] | Government Business Segment [Member] | |
Claims Development [Line Items] | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 5,453 |
Short-duration Insurance Contract, Accident Year 2020 [Member] | Other Segment [Member] | |
Claims Development [Line Items] | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 190 |
Debt (Convertible Debenture Det
Debt (Convertible Debenture Details) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Net debt carrying amount | $ 680 | $ 904 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal amount | 202 | |
Unamortized debt discount | 64 | |
Net debt carrying amount | 136 | |
Equity component carrying amount | $ 73 | |
Conversion rate (shares of common stock per $1,000 of principal) | 13.9862 | |
Effective conversion price (per $1,000 of principal amount) per share | $ / shares | $ 71.4990 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Apr. 23, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Repayments of Long-term Debt | $ 52,000,000 | $ 63,000,000 | ||
(Loss) gain on extinguishment of debt | (1,000,000) | $ 1,000,000 | ||
Long-term Debt | 300,000,000 | |||
Short-term borrowings | 1,075,000,000 | $ 700,000,000 | ||
Commercial paper | $ 1,305,000,000 | 400,000,000 | ||
Senior Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Covenant description | Our ability to borrow under these credit facilities is subject to compliance with certain covenants, including covenants requiring us to maintain a defined debt-to-capital ratio of not more than 60%, subject to increase in certain circumstances set forth in the applicable credit agreement. | |||
Covenant compliance | As of March 31, 2020, our debt-to-capital ratio, as defined and calculated under the credit facilities, was 40.6%. We do not believe the restrictions contained in any of our credit facility covenants materially affect our financial or operating flexibility. As of March 31, 2020, we were in compliance with all of the debt covenants under these credit facilities. | |||
Convertible Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Repurchased Face Amount | $ 13,000,000 | |||
Repayments of Long-term Debt | 52,000,000 | |||
(Loss) gain on extinguishment of debt | (1,000,000) | |||
Lines of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 500,000,000 | |||
Short-term borrowings | 300,000,000 | 50,000,000 | ||
Federal Home Loan Bank Advances [Member] | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank, advances, short-term | $ 775,000,000 | $ 650,000,000 | ||
Debt instrument interest rate | 0.679% | 1.664% | ||
Surplus Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 25,000,000 | $ 25,000,000 | ||
Senior Unsecured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 18,842,000,000 | 18,815,000,000 | ||
Commercial Paper Program | ||||
Debt Instrument [Line Items] | ||||
Commercial paper authorized | 3,500,000,000 | |||
Commercial paper | 1,305,000,000 | 400,000,000 | ||
364-Day Facility [Member] | Senior Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 1,000,000,000 | |||
5-Year Facility [Member] | Senior Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 300,000,000 | $ 0 | ||
Maximum borrowing capacity | $ 2,500,000,000 | |||
5-Year Facility [Member] | Subsequent Event [Member] | Senior Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of Long-term Debt | $ 300,000,000 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)states | |
Commitments And Contingencies [Line Items] | |
Gross premium tax rate, state of California | 2.35% |
Merger agreement, termination fee | $ 1,850 |
Long-term purchase commitment, amount | 1,700 |
Minimum [Member] | |
Commitments And Contingencies [Line Items] | |
Estimate of possible loss on loss contingencies | 0 |
Maximum [Member] | |
Commitments And Contingencies [Line Items] | |
Estimate of possible loss on loss contingencies | $ 800 |
BCBS Antitrust Litigation [Member] | |
Commitments And Contingencies [Line Items] | |
Number of states action filed | states | 28 |
Anthem, Inc. v. Express Scripts, Inc. [Member] | |
Commitments And Contingencies [Line Items] | |
Proceeds originally received at time of divestiture | $ 4,675 |
Anthem, Inc. v. Express Scripts, Inc. [Member] | Damages for Pharmacy Pricing [Member] | |
Commitments And Contingencies [Line Items] | |
Approximate amount of damages sought for breaches | 14,800 |
Anthem, Inc. v. Express Scripts, Inc. [Member] | Damages for Operational Breaches [Member] | |
Commitments And Contingencies [Line Items] | |
Approximate amount of damages sought for breaches | $ 158 |
Capital Stock (Summary of Cash
Capital Stock (Summary of Cash Dividend Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Capital [Abstract] | ||
Declaration date | Jan. 28, 2020 | Jan. 29, 2019 |
Record date | Mar. 16, 2020 | Mar. 18, 2019 |
Payment date | Mar. 27, 2020 | Mar. 29, 2019 |
Cash dividends per share | $ 0.95 | $ 0.80 |
Total payment | $ 240 | $ 206 |
Capital Stock (Summary of Share
Capital Stock (Summary of Share Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased | 1.9 | 1.1 |
Average price per share | $ 275.38 | $ 275.23 |
Aggregate cost | $ 529 | $ 294 |
Authorization remaining at the end of the period | $ 3,263 | $ 5,199 |
Capital Stock (Summary of Stock
Capital Stock (Summary of Stock Option Activity) (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Number of Shares [Roll Forward] | |
Outstanding at beginning of period, Number of Shares | shares | 3.1 |
Granted, Number of Shares | shares | 1 |
Exercised, Number of Shares | shares | (0.3) |
Forfeited or expired, Number of Shares | shares | 0 |
Outstanding at end of period, Number of Shares | shares | 3.8 |
Exercisable at end of period, Number of Shares | shares | 2.2 |
Weighted-Average Option Price Per Share [Roll Forward] | |
Outstanding at beginning of period, Weighted-Average Option Price per Share | $ / shares | $ 190.31 |
Granted, Weighted-Average Option Price per Share | $ / shares | 271.27 |
Exercised, Weighted-Average Option Price per Share | $ / shares | 107.46 |
Forfeited or expired, Weighted-Average Option Price per Share | $ / shares | 256.05 |
Outstanding at end of period, Weighted-Average Option Price per Share | $ / shares | 216.40 |
Exercisable at end of period, Weighted-Average Option Price per Share | $ / shares | $ 171.44 |
Outstanding at end of period, Weighted-Average Remaining Contractual Life | 7 years 1 month 24 days |
Exercisable at end of period, Weighted-Average Remaining Contractual Life | 5 years 6 months 25 days |
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 139 |
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 139 |
Capital Stock (Nonvested Restri
Capital Stock (Nonvested Restricted Stock Activity Including Restricted Stock Units) (Details) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock Shares and Units [Roll Forward] | ||
Nonvested at Beginning Balance, Restricted Stock Shares and Units | 1.4 | |
Granted, Restricted Stock Shares and Units | 1.2 | 0.5 |
Vested, Restricted Stock Shares And Units | (1.1) | |
Forfeited, Restricted Stock Shares And Units | (0.1) | |
Nonvested at Ending Balance, Restricted Stock Shares and Units | 1.4 | |
Weighted-Average Grant Date Fair Value Per Share [Roll Forward] | ||
Nonvested at Beginning Balance, Weighted-Average Grant Date Fair Value per Share | $ 242.47 | |
Granted, Weighted-Average Grant Date Fair Value per Share | 272.03 | $ 307.59 |
Vested, Weighted-Average Grant Date Fair Value per Share | 193.23 | |
Forfeited, Weighted-Average Grant Date Fair Value per Share | 264.40 | |
Nonvested at Ending Balance, Weighted-Average Grant Date Fair Value per Share | $ 271 |
Capital Stock (Fair Values of O
Capital Stock (Fair Values of Options Granted During The Period Estimated Using Weighted-Average Assumptions) (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Capital [Abstract] | ||
Risk-free interest rate | 1.30% | 2.69% |
Volatility factor | 26.00% | 25.00% |
Quarterly dividend yield | 0.35% | 0.26% |
Weighted-average expected life (years) | 4 years 3 months 18 days | 4 years 4 months 24 days |
Capital Stock (Schedule Of Weig
Capital Stock (Schedule Of Weighted-Average Fair Values Determined For The Periods) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Capital [Abstract] | ||
Options granted during the period | $ 54.03 | $ 68.92 |
Restricted stock awards granted during the period | $ 272.03 | $ 307.59 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jun. 25, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Apr. 28, 2020 | Dec. 07, 2017 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Document Period End Date | Mar. 31, 2020 | ||||
Dividends Payable, Date to be Paid | Mar. 27, 2020 | Mar. 29, 2019 | |||
Dividends Payable, Date of Record | Mar. 16, 2020 | Mar. 18, 2019 | |||
Increase In Stock Repurchase Program Authorization | $ 5,000 | ||||
Subsequent Event [Member] | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Dividends Payable, Amount Per Share | $ 0.95 | ||||
Dividends Payable, Date to be Paid | Jun. 25, 2020 | ||||
Dividends Payable, Date of Record | Jun. 10, 2020 | ||||
2020 to 2022 [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0.2 | ||||
2017 to 2019 [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Reconciliation Of The Components Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Investments, Accumulated Gross Unrealized Gain, before Tax | $ 510 | $ 379 | |
Investments, Accumulated Gross Unrealized Loss, before Tax | (729) | (121) | |
Investments, net pretax unrealized gains (losses) excluding non-credit component of other-than-temporary impairments | (219) | 258 | |
Deferred tax (liability) asset | 51 | (61) | |
Net unrealized gains (losses) on investments excluding non-credit component of other-than-temporary impairments | (168) | 197 | |
Non-credit component of other than temporary impairments on investments, unrealized losses | (44) | (3) | |
Non-credit component of other than temporary impairments on investments, deferred tax asset | 10 | 1 | |
Net unrealized non-credit component of other than temporary impairments on investments | (34) | (2) | |
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | (327) | (308) | |
Cash flow hedges, deferred tax asset | 68 | 65 | |
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | (259) | (243) | |
Defined benefit pension plans, deferred net actuarial loss | (724) | (744) | |
Defined benefit pension plans, deferred prior service credits | 0 | (1) | |
Defined benefit pension plans, deferred tax asset | 185 | 191 | |
Net unrecognized periodic benefit costs for defined benefit pension plans | (539) | (554) | |
Postretirement benefit plans, deferred net actuarial loss | (25) | (57) | |
Postretirement beneft plans, prior service costs | 18 | 31 | |
Postretirement benefit plans, deferred tax asset | 2 | 7 | |
Net unrecognized periodic benefit costs for postretirement benefit plans | (5) | (19) | |
Foreign currency translation adjustments, gross unrealized losses | (4) | (3) | |
Foreign currency translation adjustments, deferred tax asset | 1 | 1 | |
Net unrealized losses on foreign currency translation adjustments | (3) | (2) | |
Accumulated other comprehensive loss | $ (1,008) | $ (623) | $ (296) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Other Comprehensive Income (Loss) Reclassification Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net holding gain (loss) on investment securities arising during the period, net of tax | $ (716) | $ 350 |
Reclassification adjustment for net realized loss (gain) on investment securities, net of tax | 27 | 7 |
Total reclassification adjustment on investments | (689) | 357 |
Non-credit component of other-than-temporary impairments on investments, net of tax | (32) | 0 |
Cash flow hedges, holding gain (loss), net of tax | 3 | 3 |
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax | 7 | 3 |
Foreign currency translation adjustment, net of tax | (1) | 0 |
Net gain (loss) recognized in other comprehensive income, net of tax | $ (712) | $ 363 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income Reclassification Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) Reclassification Adjustments (Parantheticals) [Abstract] | ||
Net holding gain (loss) on investment securities arising during the period, tax (expense) benefit | $ 213 | $ (98) |
Reclassification adjustment for net realized loss (gain) on investment securities, tax (benefit) expense | (7) | (2) |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Available-for-sale Securities | 9 | 0 |
Cash flow hedges, holding gain (loss), tax (expense) benefit | (1) | 0 |
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, tax expense | (3) | (1) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 |
Net gain (loss) recognized in other comprehensive income, tax (expense) benefit | $ 211 | $ (101) |
Earnings Per Share (Denominator
Earnings Per Share (Denominator For Basic And Diluted Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Denominator for basic earnings per share - weighted-average shares | 252.4 | 257.1 |
Effect of dilutive securities – employee stock options, nonvested restricted stock awards and convertible debentures | 4 | 5.2 |
Denominator for diluted earnings per share | 256.4 | 262.3 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Weighted average shares excluded from denominator for diluted earnings per share because the stock options were anti-dilutive | 0.9 | 0.2 |
Restricted stock units issued under stock incentive plan | 1.2 | 0.5 |
Restricted stock units excluded from the denominator for diluted earnings per share | 0.2 | 0.2 |
Segment Information (Financial
Segment Information (Financial Data By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | $ 29,448 | $ 24,388 |
Operating gain (loss) | 2,194 | 1,940 |
Commercial & Specialty [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating gain (loss) | 1,420 | 1,598 |
Government Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating gain (loss) | 411 | 374 |
IngenioRx Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating gain (loss) | 349 | 0 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating gain (loss) | 14 | (32) |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | (3,603) | (477) |
Unaffiliated | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | 29,448 | 24,388 |
Unaffiliated | Commercial & Specialty [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | 9,361 | 9,392 |
Unaffiliated | Government Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | 17,466 | 14,925 |
Unaffiliated | IngenioRx Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | 2,344 | 0 |
Unaffiliated | Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | 277 | 71 |
Affiliated [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | 0 | 0 |
Affiliated [Member] | Commercial & Specialty [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | 0 | 0 |
Affiliated [Member] | Government Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | 0 | 0 |
Affiliated [Member] | IngenioRx Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | 2,853 | 0 |
Affiliated [Member] | Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segments operating revenues | $ 750 | $ 477 |
Segment Information Segment Inf
Segment Information Segment Information (Major Product Revenues for Each Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | $ 29,448 | $ 24,388 |
Commercial Specialty Business Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 9,361 | 9,392 |
Government Business Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 17,466 | 14,925 |
IngenioRx Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 5,197 | 0 |
Other Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 1,027 | 548 |
Segment Eliminations [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | (3,603) | (477) |
Managed Care Products [Member] | Commercial Specialty Business Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 7,569 | 7,618 |
Managed Care Products [Member] | Government Business Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 17,375 | 14,821 |
Managed Care Services [Member] | Commercial Specialty Business Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 1,381 | 1,366 |
Managed Care Services [Member] | Government Business Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 91 | 104 |
Dental Vision Products And Services [Member] | Commercial Specialty Business Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 315 | 323 |
Other Products [Member] | Commercial Specialty Business Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | 96 | 85 |
Pharmacy products and services [Member] | IngenioRx Segment [Member] | ||
Major Product Revenue By Segment [Line Items] | ||
Insurance Services Revenue | $ 5,197 | $ 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Reportable Segments Operating Revenues To Total Revenues Reported In The Consolidated Statements Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting [Abstract] | ||
Reportable segments operating revenues | $ 29,448 | $ 24,388 |
Net investment income | 254 | 210 |
Net realized (losses) gains on financial instruments | (24) | 78 |
Impairment losses recognized in income | (57) | (10) |
Total revenues | $ 29,621 | $ 24,666 |
Segment Information (Reconcil_2
Segment Information (Reconciliation Of Reportable Segments Operating Gain To Income Before Income Tax Expense Included In The Consolidated Statements Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting [Abstract] | ||
Reportable segments operating gain | $ 2,194 | $ 1,940 |
Net investment income | 254 | 210 |
Net realized (losses) gains on financial instruments | (24) | 78 |
Impairment losses recognized in income | (57) | (10) |
Interest expense | (194) | (187) |
Amortization of other intangible assets | (83) | (87) |
(Loss) gain on extinguishment of debt | (1) | 1 |
Income before income tax expense | $ 2,089 | $ 1,945 |
Segment Information Segment I_2
Segment Information Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Number of Reportable Segments | 4 |
Leases (Lease and Other Informa
Leases (Lease and Other Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Lease, Cost | $ 47 | $ 45 |
Short-term Lease, Cost | 13 | 12 |
Sublease Income | (3) | (4) |
Lease, Cost | 57 | 53 |
Operating Lease, Payments | 44 | 44 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 323 | $ 0 |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 2 months 12 days | 6 years 6 months |
Weighted Average Discount Rate, Percent | 3.57% | 3.97% |
Other Noncurrent Assets [Member] | ||
Operating Lease, Right-of-Use Asset | $ 915 | $ 575 |
Other Current Liabilities [Member] | ||
Operating Lease, Liability, Current | 195 | 158 |
Other Noncurrent Liabilities [Member] | ||
Operating Lease, Liability, Noncurrent | $ 801 | $ 482 |
Leases (Reconciliation of Futur
Leases (Reconciliation of Future Lease Payments to Total Lease Liabilities) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Leases (Reconciliation of Future Lease Payments to Total Lease Liabilities) [Abstract] | |
Operating lease payments, 2020; excluding three months ended March 31, 2020 | $ 140 |
Operating lease payments, 2021 | 178 |
Operating lease payments, 2022 | 161 |
Operating lease payments, 2023 | 140 |
Operating lease payments, 2024 | 110 |
Operating lease payments, Thereafter | 288 |
Total future minimum payments | 1,017 |
Imputed Interest, Leases | (21) |
Operating Lease Liabilities | $ 996 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 12 years |
Lessee, Operating Lease, Lease Not yet Commenced, Description | are expected to commence on various dates during 2020 and 2021 when the construction is complete and we take possession of the buildings |
Lessee, Operating Lease, Lease Not Yet Commenced Expense | $ 226 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 15 years |