Document And Entity Information
Document And Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 21, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
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, $0.01 par value | |
Trading Symbol | ANTM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 248,704,310 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 3,984 | $ 4,937 |
Fixed maturity securities (amortized cost of $21,867 and $19,021; allowance for credit losses of $12 and $0) | 22,707 | 19,676 |
Equity securities | 3,075 | 1,009 |
Premium receivables | 5,343 | 5,014 |
Self-funded receivables | 2,985 | 2,570 |
Other receivables | 3,209 | 2,807 |
Other current assets | 4,147 | 3,020 |
Total current assets | 45,450 | 39,033 |
Long-term investments: | ||
Fixed maturity securities (amortized cost of $530 and $487; allowance for credit losses of $0 and $0) | 558 | 505 |
Other invested assets | 4,170 | 4,258 |
Property and equipment, net | 3,363 | 3,133 |
Goodwill | 21,687 | 20,500 |
Other intangible assets | 9,497 | 8,674 |
Other noncurrent assets | 1,849 | 1,350 |
Total assets | 86,574 | 77,453 |
Policy Liabilities | ||
Medical claims payable | 10,252 | 8,842 |
Other policyholder liabilities | 3,804 | 3,050 |
Unearned income | 961 | 1,017 |
Accounts payable and accrued expenses | 5,550 | 4,198 |
Short-term borrowings | 150 | 700 |
Current portion of long-term debt | 1,599 | 1,598 |
Other current liabilities | 6,245 | 4,127 |
Total current liabilities | 28,561 | 23,532 |
Long-term debt, less current portion | 19,094 | 17,787 |
Reserves for future policy benefits, noncurrent | 784 | 759 |
Deferred tax liabilities, net | 2,375 | 2,227 |
Other noncurrent liabilities | 1,839 | 1,420 |
Total liabilities | 52,653 | 45,725 |
Commitments and contingencies – Note 12 | ||
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 – 249,444,426 and 252,922,161 | 3 | 3 |
Additional paid-in capital | 9,352 | 9,448 |
Retained earnings | 24,678 | 22,573 |
Accumulated other comprehensive loss | (112) | (296) |
Total shareholders' equity | 33,921 | 31,728 |
Total liabilities and shareholders' equity | $ 86,574 | $ 77,453 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Available-for-sale fixed maturity securities investments, current, amortized cost | $ 21,867 | $ 19,021 |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 12 | 0 |
Available-for-sale fixed maturity securities investments, long-term, amortized cost | $ 530 | $ 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 | 249,444,426 | 252,922,161 |
Common stock, shares outstanding | 249,444,426 | 252,922,161 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Premiums | $ 26,392 | $ 23,793 | $ 77,001 | $ 70,137 |
Product revenue | 2,598 | 1,116 | 7,485 | 1,260 |
Administrative fees and other revenue | 1,659 | 1,535 | 4,789 | 4,612 |
Total operating revenue | 30,649 | 26,444 | 89,275 | 76,009 |
Net investment income | 280 | 242 | 591 | 737 |
Net realized gains (losses) on financial instruments | 247 | 1 | 241 | 90 |
Impairment losses on investments: | ||||
Total impairment recoveries (losses) on investments | (24) | (14) | (119) | (36) |
Portion of impairment losses recognized in other comprehensive income | 6 | 1 | 55 | 6 |
Impairment recoveries (losses) recognized in income | (18) | (13) | (64) | (30) |
Total revenues | 31,158 | 26,674 | 90,043 | 76,806 |
Expenses | ||||
Benefit expense | 22,921 | 20,753 | 63,957 | 60,403 |
Cost of products sold | 2,222 | 745 | 6,431 | 843 |
Selling, general and administrative expense | 5,305 | 3,418 | 13,132 | 9,862 |
Interest expense | 198 | 185 | 593 | 556 |
Amortization of other intangible assets | 93 | 84 | 269 | 256 |
Loss (gain) on extinguishment of debt | 30 | 0 | 34 | (1) |
Total expenses | 30,769 | 25,185 | 84,416 | 71,919 |
Income before income tax expense | 389 | 1,489 | 5,627 | 4,887 |
Income tax expense | 167 | 306 | 1,606 | 1,014 |
Net income | $ 222 | $ 1,183 | $ 4,021 | $ 3,873 |
Net income per share | ||||
Basic net income per share | $ 0.88 | $ 4.64 | $ 15.96 | $ 15.11 |
Diluted net income per share | 0.87 | 4.55 | 15.75 | 14.83 |
Dividends per share | $ 0.95 | $ 0.80 | $ 2.85 | $ 2.40 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 222 | $ 1,183 | $ 4,021 | $ 3,873 |
Other comprehensive income, net of tax: | ||||
Change in net unrealized losses/gains on investments | 113 | 116 | 154 | 711 |
Change in non-credit component of impairment losses on investments | 16 | (1) | (6) | (2) |
Change in net unrealized gains/losses on cash flow hedges | 4 | (34) | 10 | (31) |
Change in net periodic pension and postretirement costs | 8 | 4 | 25 | 10 |
Foreign currency translation adjustments | 1 | (1) | 1 | (1) |
Other comprehensive income | 142 | 84 | 184 | 687 |
Total comprehensive income | $ 364 | $ 1,267 | $ 4,205 | $ 4,560 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net income | $ 4,021 | $ 3,873 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized (gains) losses on financial instruments | (241) | (90) |
Depreciation and amortization | 864 | 887 |
Deferred income taxes | (102) | (29) |
Impairment of property and equipment | 195 | 0 |
Share-based compensation | 214 | 226 |
Changes in operating assets and liabilities: | ||
Receivables, net | (845) | (880) |
Other invested assets | 6 | (30) |
Other assets | (988) | (280) |
Policy liabilities | 1,624 | 1,394 |
Unearned income | (95) | 46 |
Accounts Payable and Other Operating Liabilities | 1,953 | (256) |
Income taxes | 104 | (81) |
Other, net | 165 | (46) |
Net cash provided by operating activities | 6,875 | 4,734 |
Investing activities | ||
Payments to acquire investments | (16,708) | (17,310) |
Proceeds from sale of investments | 8,739 | 12,832 |
Maturities, calls and redemptions from investments | 3,763 | 1,583 |
Changes in securities lending collateral | (668) | 139 |
Purchases of subsidiaries, net of cash acquired | (1,973) | 0 |
Purchases of property and equipment | (743) | (726) |
Other, net | (39) | (33) |
Net cash used in investing activities | (7,629) | (3,515) |
Financing activities | ||
Net repayments of commercial paper borrowings | (400) | (197) |
Proceeds from long-term borrowings | 2,485 | 2,473 |
Repayments of long-term borrowings | (964) | (923) |
Proceeds from short-term borrowings | 970 | 6,480 |
Repayments of short-term borrowings | (1,520) | (6,915) |
Changes in securities lending payable | 668 | (139) |
Repurchase and retirement of common stock | (1,342) | (1,396) |
Cash dividends | (720) | (616) |
Proceeds from issuance of common stock under employee stock plans | 112 | 137 |
Taxes paid through withholding of common stock under employee stock plans | (112) | (82) |
Other, net | 623 | 216 |
Net cash used in financing activities | (200) | (962) |
Effect of foreign exchange rates on cash and cash equivalents | 1 | (1) |
Change in cash and cash equivalents | (953) | 256 |
Cash and cash equivalents at beginning of period | 4,937 | 3,934 |
Cash and cash equivalents at end of period | $ 3,984 | $ 4,190 |
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] |
Cumulative effect of new accounting principle in period of adoption | $ 26 | $ 26 | $ 0 | ||
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) | $ 0 | (71) | (223) | |
Repurchase and retirement of common stock, shares | (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 | ||||
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 | 3,873 | ||||
Other comprehensive income (loss) | 687 | ||||
Repurchase and retirement of common stock, value | $ (1,396) | ||||
Repurchase and retirement of common stock, shares | (5.2) | ||||
Balance at Sep. 30, 2019 | $ 31,332 | $ 3 | 9,524 | 22,104 | (299) |
Balance (in shares) at Sep. 30, 2019 | 253.8 | ||||
Balance at Mar. 31, 2019 | 29,998 | $ 3 | 9,482 | 21,136 | (623) |
Balance (in shares) at Mar. 31, 2019 | 257.4 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,139 | 1,139 | |||
Other comprehensive income (loss) | 240 | 240 | |||
Repurchase and retirement of common stock, value | (458) | $ 0 | (70) | (388) | |
Repurchase and retirement of common stock, shares | (1.7) | ||||
Dividends and dividend equivalents | (208) | (208) | |||
Issuance of common stock under employee stock plans, net of related tax benefits, Shares | 0.2 | ||||
Issuance of common stock under employee stock plans, net of related tax benefits | 91 | 91 | |||
Convertible debenture repurchases and conversions | (9) | (9) | |||
Balance at Jun. 30, 2019 | 30,793 | $ 3 | 9,494 | 21,679 | (383) |
Balance (in shares) at Jun. 30, 2019 | 255.9 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,183 | 1,183 | |||
Other comprehensive income (loss) | 84 | 84 | |||
Repurchase and retirement of common stock, value | (644) | $ 0 | (90) | (554) | |
Repurchase and retirement of common stock, shares | (2.4) | ||||
Dividends and dividend equivalents | (204) | (204) | |||
Issuance of common stock under employee stock plans, net of related tax benefits, Shares | 0.3 | ||||
Issuance of common stock under employee stock plans, net of related tax benefits | 120 | 120 | |||
Balance at Sep. 30, 2019 | 31,332 | $ 3 | 9,524 | 22,104 | (299) |
Balance (in shares) at Sep. 30, 2019 | 253.8 | ||||
Cumulative effect of new accounting principle in period of adoption | (35) | (35) | |||
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) | ||||
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 | ||||
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 | 4,021 | ||||
Other comprehensive income (loss) | 184 | ||||
Repurchase and retirement of common stock, value | $ (1,342) | ||||
Repurchase and retirement of common stock, shares | (5) | ||||
Balance at Sep. 30, 2020 | $ 33,921 | $ 3 | 9,352 | 24,678 | (112) |
Balance (in shares) at Sep. 30, 2020 | 249.4 | ||||
Balance at Mar. 31, 2020 | 31,693 | $ 3 | 9,338 | 23,360 | (1,008) |
Balance (in shares) at Mar. 31, 2020 | 252 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,276 | 2,276 | |||
Other comprehensive income (loss) | 754 | 754 | |||
Repurchase and retirement of common stock, value | (55) | (9) | (46) | ||
Repurchase and retirement of common stock, shares | (0.2) | ||||
Dividends and dividend equivalents | (244) | (244) | |||
Issuance of common stock under employee stock plans, net of related tax benefits, Shares | 0.3 | ||||
Issuance of common stock under employee stock plans, net of related tax benefits | 113 | 113 | |||
Convertible debenture repurchases and conversions | (82) | (82) | |||
Balance at Jun. 30, 2020 | 34,455 | $ 3 | 9,360 | 25,346 | (254) |
Balance (in shares) at Jun. 30, 2020 | 252.1 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 222 | 222 | |||
Other comprehensive income (loss) | 142 | 142 | |||
Repurchase and retirement of common stock, value | (758) | (106) | (652) | ||
Repurchase and retirement of common stock, shares | (2.9) | ||||
Dividends and dividend equivalents | (238) | (238) | |||
Issuance of common stock under employee stock plans, net of related tax benefits, Shares | 0.2 | ||||
Issuance of common stock under employee stock plans, net of related tax benefits | 98 | 98 | |||
Balance at Sep. 30, 2020 | $ 33,921 | $ 3 | $ 9,352 | $ 24,678 | $ (112) |
Balance (in shares) at Sep. 30, 2020 | 249.4 |
Organization
Organization | 9 Months Ended |
Sep. 30, 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 43 million medical members through our affiliated health plans as of September 30, 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. |
Basis Of Presentation and Signi
Basis Of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 16, “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 and nine months ended September 30, 2020 and 2019 have been recorded. The results of operations for the three and nine months ended September 30, 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 $179 and $215 at September 30, 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 may enable 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: Receivables are reported net of amounts for expected credit losses. The allowance for doubtful accounts is based on historical collection trends, future forecasts and our judgment regarding the ability to collect specific accounts. 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 $250 and $237 at September 30, 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 September 30, 2020 and December 31, 2019, respectively. 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 $390 and $242 at September 30, 2020 and December 31, 2019, respectively. 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 September 30, 2020. For the three and nine months ended September 30, 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 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 balance sheet 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 October 2020, the FASB issued Accounting Standards Update No. 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs , or ASU 2020-08. The amendments clarify when an entity should assess whether a callable debt security is within the scope of accounting guidance, which impacts the amortization period for nonrefundable fees and other costs. ASU 2020-08 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. Upon adoption, the amendments are to be applied on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. We are currently evaluating the effects the adoption of ASU 2020-08 will have on our consolidated financial statements. In August 2020, the FASB issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, or ASU 2020-06 . The amendments eliminate two of the three accounting models that require separate accounting for convertible features of debt securities, simplify the contract settlement assessment for equity classification, require the use of the if-converted method for all convertible instruments in the diluted earnings per share calculation and expand disclosure requirements. The amendments are effective for our annual and interim reporting periods beginning after December 15, 2021, with early adoption permitted for reporting periods beginning after December 15, 2020. The guidance can be applied on a full retrospective basis to all periods presented or a modified retrospective basis with a cumulative effect adjustment to the opening balance of retained earnings during the period of adoption. We are currently evaluating the effects the adoption of ASU 2020-06 will have on our consolidated financial statements and disclosures. 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 Accounting Standards Codification 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 | 9 Months Ended |
Sep. 30, 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 $1,067 at September 30, 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. As of September 30, 2020, the initial accounting for the acquisition has not been finalized. 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 continue to 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 September 30, 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. |
Business Optimization Initiativ
Business Optimization Initiatives | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Business Optimization Initiatives | Business Optimization Initiatives During the third quarter of 2020, management introduced enterprise-wide initiatives to optimize our business and, as a result, we recorded a charge of $607 in selling, general and administrative expenses. We believe these initiatives represent the next step forward in our progression towards becoming a more agile organization, including process automation and a reduction in our office space footprint. This charge includes $224 for impairment and abandonment of operating-lease related right-of-use assets, $195 for impairment and abandonment of property and equipment and $188 for future payments for employee termination costs in connection with the repositioning and reskilling of our workforce and contract exit costs. We expect most of the employee termination and contract exit costs to be paid by the end of 2021. The charges recognized in the Commercial & Specialty Business, Government Business, IngenioRx and Other segments (see Note 16, “Segment Information”) in the third quarter of 2020, were $299, $183, $3 and $122, respectively. |
Investments
Investments | 9 Months Ended |
Sep. 30, 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. 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 September 30, 2020 and December 31, 2019 is as follows: Cost or Non-Credit Gross Gross Unrealized Losses Allowance For Credit Losses Estimated Less than 12 Months September 30, 2020 Fixed maturity securities: United States Government securities $ 802 $ 17 $ (6) $ — $ — $ 813 $ — Government sponsored securities 75 6 — — — 81 — Foreign government securities 296 10 (13) — (1) 292 — States, municipalities and political subdivisions 5,042 339 (18) — — 5,363 — Corporate securities 10,140 579 (114) (23) (11) 10,571 (10) Residential mortgage-backed securities 4,075 151 (48) (10) — 4,168 (1) Commercial mortgage-backed securities 76 3 (1) (3) — 75 — Other securities 1,891 31 (14) (6) — 1,902 — Total fixed maturity securities $ 22,397 $ 1,136 $ (214) $ (42) $ (12) $ 23,265 $ (11) 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 September 30, 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 Estimated Gross Number of Estimated Gross September 30, 2020 Fixed maturity securities: United States Government securities 17 $ 377 $ (6) — $ — $ — Government sponsored securities 1 1 — 1 — — Foreign government securities 191 141 (13) — — — States, municipalities and political subdivisions 283 512 (18) 1 3 — Corporate securities 1,481 2,140 (114) 146 171 (23) Residential mortgage-backed securities 407 976 (48) 82 108 (10) Commercial mortgage-backed securities 6 17 (1) 3 4 (3) Other securities 302 763 (14) 75 185 (6) Total fixed maturity securities 2,688 $ 4,927 $ (214) 308 $ 471 $ (42) 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 and credit losses as of September 30, 2020: Foreign government securities: An allowance for credit loss was established on foreign government security holdings of the Republic of Ecuador. Notification of the request for delayed interest payments, a ratings downgrade and a significant decline in the fair value were factors indicating a credit loss. No other foreign government securities had material unrealized losses or qualitative factors to indicate a credit loss. We do not intend to sell these investments and it is likely we will not be required to sell these investments prior to maturity or recovery of amortized cost. Corporate securities: An allowance for credit losses on certain retail, travel and entertainment as well as energy sector fixed maturity corporate securities has been determined based on qualitative and quantitative factors including credit rating, decline in fair value and industry condition 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. Unrealized losses on our other corporate securities were largely due to market conditions relating to the COVID-19 pandemic; however, qualitative factors did not indicate a credit loss as of September 30, 2020. We do not intend to sell these investments and it is likely we will not have to sell these investments prior to maturity or recovery of amortized cost. As for the remaining securities shown in the table above, unrealized losses on these securities have not been recognized into income because we do not intend to sell these investments and it is likely that we will not be required to sell these investments 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 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 September 30, 2020: Three Months Ended September 30 Corporate Securities Foreign Government Securities Total Allowance for credit losses: Beginning balance $ 23 $ 1 $ 24 Additions for securities for which no previous expected credit losses were recognized 1 — 1 Securities sold during the period (5) — (5) Decreases to the allowance for credit losses on securities (8) — (8) Total allowance for credit losses $ 11 $ 1 $ 12 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 nine months ended September 30, 2020: Nine Months Ended September 30 Corporate Securities Foreign Government Securities Total Allowance for credit losses: Beginning balance $ — $ — $ — Additions for securities for which no previous expected credit losses were recognized 61 1 62 Securities sold during the period (13) — (13) Decreases to the allowance for credit losses on securities (37) — (37) Total allowance for credit losses $ 11 $ 1 $ 12 The amortized cost and fair value of fixed maturity securities at September 30, 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 Estimated Due in one year or less $ 772 $ 780 Due after one year through five years 5,813 6,023 Due after five years through ten years 6,741 7,023 Due after ten years 4,920 5,196 Mortgage-backed securities 4,151 4,243 Total fixed maturity securities $ 22,397 $ 23,265 Proceeds from sales, maturities, calls or redemptions of fixed maturity securities and the related gross realized gains and gross realized losses for the three and nine months ended September 30, 2020 and 2019 are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Proceeds $ 4,597 $ 2,048 $ 9,146 $ 5,502 Gross realized gains 51 26 131 66 Gross realized losses (14) (9) (84) (43) 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 September 30, 2020 and December 31, 2019 is as follows: September 30, 2020 December 31, 2019 Equity securities: Exchange traded funds $ 2,646 $ 44 Fixed maturity mutual funds 143 643 Common equity securities 225 237 Private equity securities 61 85 Total $ 3,075 $ 1,009 The gains and losses related to equity securities for the three and nine months ended September 30, 2020 and 2019 are as follows: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Net realized gains (losses) recognized on equity securities $ 188 $ (16) $ 183 $ 75 Less: Net realized gains recognized on equity securities sold during the period (15) (6) (20) (55) Unrealized gains (losses) recognized on equity securities still held at September 30 $ 173 $ (22) $ 163 $ 20 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 September 30, 2020 and December 31, 2019, accrued investment income totaled $184 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 $1,019 and $351 at September 30, 2020 and December 31, 2019, respectively. The value of the collateral represented 102% and 103% of the market value of the securities on loan at September 30, 2020 and December 31, 2019, respectively. 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 September 30, 2020 is as follows: Overnight and Continuous Securities lending collateral Cash $ 898 United States Government securities 121 Total $ 1,019 |
Derivative Financial Instrument
Derivative Financial Instruments Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 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 sheets. 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 $252 and $262 at September 30, 2020 and December 31, 2019, respectively. For additional information relating to the fair value of our derivative assets and liabilities, see Note 7, “Fair Value,” of this Form 10-Q. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 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, foreign 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 September 30, 2020 and December 31, 2019 is as follows: Level I Level II Level III Total September 30, 2020 Assets: Cash equivalents $ 1,764 $ — $ — $ 1,764 Fixed maturity securities, available-for-sale: United States Government securities — 813 — 813 Government sponsored securities — 81 — 81 Foreign government securities — 292 — 292 States, municipalities and political subdivisions, tax-exempt — 5,363 — 5,363 Corporate securities — 10,258 313 10,571 Residential mortgage-backed securities — 4,166 2 4,168 Commercial mortgage-backed securities — 75 — 75 Other securities — 1,897 5 1,902 Total fixed maturity securities, available-for-sale — 22,945 320 23,265 Equity securities: Exchange traded funds 2,646 — — 2,646 Fixed maturity mutual funds — 143 — 143 Common equity securities 197 28 — 225 Private equity securities — — 61 61 Total equity securities 2,843 171 61 3,075 Securities lending collateral — 1,019 — 1,019 Derivatives — 40 — 40 Total assets $ 4,607 $ 24,175 $ 381 $ 29,163 Liabilities: Derivatives $ — $ (1) $ — $ (1) Total liabilities $ — $ (1) $ — $ (1) 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 September 30, 2020 and 2019 is as follows: Corporate Residential Other Equity Total Three Months Ended September 30, 2020 Beginning balance at July 1, 2020 $ 314 $ 2 $ 5 $ 62 $ 383 Total (losses) gains: Recognized in net income (1) — — (3) (4) Recognized in accumulated other comprehensive loss 14 — — — 14 Purchases 5 — — 2 7 Sales (5) — — — (5) Settlements (14) — — — (14) Ending balance at September 30, 2020 $ 313 $ 2 $ 5 $ 61 $ 381 Change in unrealized losses included in net income related to assets still held at September 30, 2020 $ — $ — $ — $ (3) $ (3) Three Months Ended September 30, 2019 Beginning balance at July 1, 2019 $ 297 $ 3 $ 11 $ 305 $ 616 Total (losses) gains: Recognized in net income (3) — — (5) (8) Recognized in accumulated other comprehensive loss 12 — — — 12 Purchases 28 — — 25 53 Sales (9) — — (19) (28) Settlements (18) — — — (18) Transfers into Level III 4 — — — 4 Ending balance at September 30, 2019 $ 311 $ 3 $ 11 $ 306 $ 631 Change in unrealized losses included in net income related to assets still held at September 30, 2019 $ — $ — $ — $ (4) $ (4) A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the nine months ended September 30, 2020 and 2019 is as follows: Corporate Residential Other Equity Total Nine Months Ended September 30, 2020 Beginning balance at January 1, 2020 $ 303 $ 2 $ 7 $ 85 $ 397 Total losses: Recognized in net income (2) — — (19) (21) Recognized in accumulated other comprehensive loss (3) — — — (3) Purchases 44 — — 17 61 Sales (9) — — (22) (31) Settlements (33) — (2) — (35) Transfers into Level III 13 — — — 13 Ending balance at September 30, 2020 $ 313 $ 2 $ 5 $ 61 $ 381 Change in unrealized losses included in net income related to assets still held at September 30, 2020 $ — $ — $ — $ (20) $ (20) Nine Months Ended September 30, 2019 Beginning balance at January 1, 2019 $ 287 $ 6 $ 17 $ 313 $ 623 Total (losses) gains: Recognized in net income (7) — — (5) (12) Recognized in accumulated other comprehensive loss 14 — — — 14 Purchases 91 — 2 46 139 Sales (11) — — (48) (59) Settlements (58) (1) (2) — (61) Transfers into Level III 4 — 3 — 7 Transfers out of Level III (9) (2) (9) — (20) Ending balance at September 30, 2019 $ 311 $ 3 $ 11 $ 306 $ 631 Change in unrealized losses included in net income related to assets still held at September 30, 2019 $ — $ — $ — $ (4) $ (4) There were no individually material transfers into or out of Level III during the three and nine months ended September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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 or noncurrent 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 – 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 September 30, 2020 and December 31, 2019 is as follows: Carrying Estimated Fair Value Level I Level II Level III Total September 30, 2020 Assets: Other invested assets $ 4,170 $ — $ — $ 4,170 $ 4,170 Liabilities: Debt: Short-term borrowings 150 — 150 — 150 Notes 20,574 — 23,714 — 23,714 Convertible debentures 119 — 656 — 656 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 | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three months ended September 30, 2020 and 2019, we recognized income tax expense of $167 and $306, respectively, which represent effective income tax rates of 42.9% and 20.6%, respectively. The increase in our effective income tax rat e was primarily due to the reinstatement of the non-tax deductible Health Insurance Provider Fee, or HIP Fee, for 2020, applied to our quarterly results, which include the impact of expenses recognized during the three months ended September 2020, for our initiatives disclosed in Note 4. “Business Optimization Initiatives” and the litigation settlement accrual described in Note 12, “Commitments and Contingencies - Litigation and Regulatory Proceedings – Blue Cross Blue Shield Antitrust Litigation ”. During the nine months ended September 30, 2020 and 2019, we recognized income tax expense of $1,606 and $1,014, respectively, which represent effective income tax rates of 28.5% and 20.7%, respectively. The increase in our effective income tax rate was primarily due to the reinstatement of the non-tax deductible HIP Fee for 2020. |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Sep. 30, 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 September 30, 2020 and 2019 are as follows: Pension Benefits Other Benefits Three Months Ended Three Months Ended 2020 2019 2020 2019 Service cost $ — $ — $ — $ 1 Interest cost 12 15 3 3 Expected return on assets (35) (35) (6) (6) Recognized actuarial loss 6 5 — 1 Settlement loss 6 4 — — Amortization of prior service credit — — (2) (3) Net periodic benefit credit $ (11) $ (11) $ (5) $ (4) The components of net periodic benefit credit included in our consolidated statements of income for the nine months ended September 30, 2020 and 2019 are as follows: Pension Benefits Other Benefits Nine Months Ended Nine Months Ended 2020 2019 2020 2019 Service cost $ — $ — $ — $ 1 Interest cost 37 47 8 11 Expected return on assets (104) (104) (18) (17) Recognized actuarial loss 18 13 — 2 Settlement loss 21 8 — — Amortization of prior service credit — — (6) (9) Net periodic benefit credit $ (28) $ (36) $ (16) $ (12) 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. Contributions of $3 and $0 were made to our retirement benefit plans during the nine months ended September 30, 2020 and 2019. |
Medical Claims Payable
Medical Claims Payable | 9 Months Ended |
Sep. 30, 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 16, “Segment Information”), for the nine months ended September 30, 2020 is as follows: Commercial Government 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 17,964 43,135 878 61,977 Prior periods redundancies (379) (321) — (700) Total net incurred medical claims 17,585 42,814 878 61,277 Net payments attributable to: Current period medical claims 15,319 36,680 880 52,879 Prior periods medical claims 2,426 5,063 — 7,489 Total net payments 17,745 41,743 880 60,368 Net medical claims payable, end of period 2,865 6,801 196 9,862 Ceded medical claims payable, end of period 102 27 — 129 Gross medical claims payable, end of period $ 2,967 $ 6,828 $ 196 $ 9,991 Activity in the Other segment resulted from our acquisition of Beacon. At September 30, 2020, the total of net incurred but not reported liabilities plus expected development on reported claims for the Commercial & Specialty Business was $30, $189 and $2,646 for the claim years 2018 and prior, 2019 and 2020, respectively. At September 30, 2020, the total of net incurred but not reported liabilities plus expected development on reported claims for the Government Business was $42, $163 and $6,596 for the claim years 2018 and prior, 2019 and 2020, respectively. At September 30, 2020, the total of net incurred but not reported liabilities plus expected development on reported claims for Other was $0, $0 and $196 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 16, “Segment Information”), for the nine months ended September 30, 2019 is as follows: Commercial Government 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 18,986 39,171 — 58,157 Prior periods redundancies (162) (275) — (437) Total net incurred medical claims 18,824 38,896 — 57,720 Net payments attributable to: Current period medical claims 16,277 33,474 — 49,751 Prior periods medical claims 2,213 4,253 — 6,466 Total net payments 18,490 37,727 — 56,217 Net medical claims payable, end of period 2,910 5,825 — 8,735 Ceded medical claims payable, end of period 8 27 — 35 Gross medical claims payable, end of period $ 2,918 $ 5,852 $ — $ 8,770 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 Nine Months Ended March 31, 2020 June 30, 2020 September 30, 2020 Net incurred medical claims: Commercial & Specialty Business $ 5,797 $ 5,147 $ 6,641 $ 17,585 Government Business 14,603 13,233 14,978 42,814 Other 130 368 $ 380 878 Total net incurred medical claims 20,530 18,748 21,999 61,277 Quality improvement and other claims expense 959 799 922 2,680 Benefit expense $ 21,489 $ 19,547 $ 22,921 $ 63,957 The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for periods in 2019 are as follows: Three Months Ended Nine Months Ended March 31, 2019 June 30, 2019 September 30, 2019 Net incurred medical claims: Commercial & Specialty Business $ 5,856 $ 6,422 $ 6,546 $ 18,824 Government Business 12,483 13,062 13,351 38,896 Total net incurred medical claims 18,339 19,484 19,897 57,720 Quality improvement and other claims expense 943 884 856 2,683 Benefit expense $ 19,282 $ 20,368 $ 20,753 $ 60,403 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 September 30, 2020, is as follows: Commercial Government Other Total Net medical claims payable, end of period $ 2,865 $ 6,801 $ 196 $ 9,862 Ceded medical claims payable, end of period 102 27 — 129 Insurance lines other than short duration — 261 — 261 Gross medical claims payable, end of period $ 2,967 $ 7,089 $ 196 $ 10,252 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt We generally issue senior unsecured notes for long-term borrowing purposes. At September 30, 2020 and December 31, 2019, we had $20,549 and $18,815, respectively, outstanding under these notes. We have an unsecured surplus note with an outstanding principal balance of $25 at both September 30, 2020 and December 31, 2019. On August 17, 2020, we repaid, at maturity, the $700 outstanding balance of our 4.350% senior unsecured notes. Additionally, during the three and nine months ended September 30, 2020, we repurchased $79 of outstanding principal amount of certain other senior unsecured notes, plus applicable premium for early redemption plus accrued and unpaid interest, for cash totaling $109. We recognized a loss on extinguishment of debt of $30 for the three and nine months ended September 30, 2020 for the repurchase of these notes. On May 5, 2020, we issued $400 aggregate principal amount of additional senior notes pursuant to a reopening of our existing 2.375% Notes due 2025, or the 2025 Notes, $1,100 aggregate principal amount of 2.250% Notes due 2030, or the 2030 Notes, and $1,000 aggregate principal amount of 3.125% Notes due 2050, or the 2050 Notes, under our shelf registration statement. The 2025 Notes constitute an additional issuance of our 2.375% notes due 2025, of which $850 aggregate principal amount was issued on September 9, 2019 . Interest on the 2025 Notes is deemed to have accrued from January 15, 2020 and is payable semi-annually in arrears on January 15 and July 15 of each year, commencing July 15, 2020. Interest on the 2030 Notes and 2050 Notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing November 15, 2020. The proceeds were used for working capital and general corporate purposes, including, but not limited to, repayment of short-term and long-term debt, repurchase of our common stock pursuant to our share repurchase program and to fund acquisitions. 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. In May 2020, we amended and extended the 364-Day Facility, which now matures in June 2021. 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 September 30, 2020, our debt-to-capital ratio, as defined and calculated under the credit facilities, was 38.1%. We do not believe the restrictions contained in any of our credit facility covenants materially affect our financial or operating flexibility. As of September 30, 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 nine months ended September 30, 2020 or the year ended December 31, 2019. At September 30, 2020 and December 31, 2019, there were no amounts outstanding under our 5-Year Facility. 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 $400. At September 30, 2020 and December 31, 2019, $0 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 September 30, 2020 and December 31, 2019, we had $0 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 and nine months ended September 30, 2020, $0 and $40, respectively, of 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 during the three and nine months ended September 30, 2020 of $0 and $155, respectively. We recognized a loss on the extinguishment of debt related to the Debentures of $0 and $4, respectively, for the three and nine months ended September 30, 2020, based on the fair values of the debt on the conversion settlement dates. The following table summarizes at September 30, 2020 the related balances, conversion rate and conversion price of the Debentures: Outstanding principal amount $ 175 Unamortized debt discount $ 54 Net debt carrying amount $ 119 Equity component carrying amount $ 63 Conversion rate (shares of common stock per $1,000 of principal amount) 14.0519 Effective conversion price (per $1,000 of principal amount) $ 71.1648 We are a member, through certain subsidiaries, of the Federal Home Loan Bank of Indianapolis, the Federal Home Loan Bank of Cincinnati, the Federal Home Loan Bank of Atlanta and the Federal Home Loan Bank of New York, 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 $150 and $650 in outstanding short-term borrowings from the FHLBs at September 30, 2020 and December 31, 2019, with fixed interest rates of 0.200% 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 | 9 Months Ended |
Sep. 30, 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 $300 at September 30, 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. Cases filed in twenty-eight states 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. 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 the defendants operate as a single entity with regard to the enforcement of the Blue Cross Blue Shield trademarks. In April 2019, plaintiffs filed their motions for class certification in conjunction with their supporting expert reports, and the defendants filed their motions to exclude plaintiffs’ experts, as well as their opposition to plaintiffs’ motions for class certification, in July 2019. The BCBSA and Blue plans have approved a settlement agreement and release, or the Subscriber Settlement Agreement, with the subscriber plaintiffs. If approved by the Court, the Subscriber Settlement Agreement will require the defendants to make a monetary settlement payment, our portion of which is estimated to be $594, and will contain certain non-monetary terms including (i) eliminating the “national best efforts” rule in the BCBSA license agreements (which rule limits the percentage of non-Blue revenue permitted for each Blue plan) and (ii) allowing for some large national employers with self-funded benefit plans to be able to request a bid for insurance coverage from a second Blue plan in addition to the local Blue plan. We accrued our estimated payment obligation in the third quarter of 2020. All terms of the Subscriber Settlement Agreement are subject to approval by the Court before they become effective. I n October 2020, after the Court lifted the stay as to the provider litigation, provider plaintiffs filed a renewed motion for class certification, and defendants filed an opposition to that motion. We intend to continue to vigorously defend the provider suit; however, its 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, or the 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 July 2020 trial date to January 2021. The parties are currently engaged in discovery. BCC has filed a motion for summary judgment, which is scheduled to be heard in October 2020. Because the 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, 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. Rebuttal expert reports are due in October 2020 and all discovery must be completed by December 2020. Motions for summary judgment must be filed by January 2021. 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, (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. In August 2020, the Delaware Court issued an opinion finding that neither party was owed damages and that we did not owe Cigna the $1,850 termination fee. The Delaware Court issued an order implementing its opinion in October 2020. Any notice of appeal must be filed within 30 days of that order. 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 any appeal of this 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 In March 2020, the DOJ filed a civil lawsuit against Anthem, Inc. in the 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. The DOJ filed an amended complaint in July 2020, alleging the same causes of action but revising some of its allegations. In September 2020, we filed a motion to transfer the lawsuit to the Southern District of Ohio, a motion to dismiss part of the lawsuit, and a motion to strike certain allegations in the amended complaint. The motions are being briefed and no decision has been rendered. We intend to continue 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 involving data submitted to CMS (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 of our investigations to CMS and the Criminal Division of the DOJ, which then initiated an investigation. We are cooperating with the government's investigation. We are in the process of analyzing the scope of potential data corrections to be submitted to CMS. 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 two groups of sellers regarding part of the escrowed funds in a cases captioned Shareholder Representative Services, LLC v. ATH Holding Company, LLC and Highland Acquisition Holdings, LLC and LPPAS Representative, LLC v. ATH Holding Company, LLC, both pending 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 have investigated events related to the cyber attack, including how it occurred, its consequences and our responses. In September 2020, we entered into a settlement to resolve the investigation by a multi-state group of attorneys general, which was the final outstanding matter related to the 2015 cyber attack. We have undertaken commitments that align with our ongoing and consistent focus to protect information in addition to a monetary payment of $39, which was fully accrued in a prior period. 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 such services and includes provisions for additional services not provided under those agreements. Our remaining commitment under this agreement at September 30, 2020 is approximately $1,377. 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, 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 September 30, 2020. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 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 our cash dividend activity for the nine months ended September 30, 2020 and 2019 is as follows: Declaration Date Record Date Payment Date Cash Dividend per Share Total Nine Months Ended September 30, 2020 January 28, 2020 March 16, 2020 March 27, 2020 $0.95 $ 240 April 28, 2020 June 10, 2020 June 25, 2020 $0.95 $ 242 July 28, 2020 September 10, 2020 September 25, 2020 $0.95 $ 238 Nine Months Ended September 30, 2019 January 29, 2019 March 18, 2019 March 29, 2019 $0.80 $ 206 April 23, 2019 June 10, 2019 June 25, 2019 $0.80 $ 206 July 23, 2019 September 10, 2019 September 25, 2019 $0.80 $ 204 On October 27, 2020, our Audit Committee declared a fourth quarter 2020 dividend to shareholders of $0.95 per share, payable on December 22, 2020 to shareholders of record at the close of business on December 7, 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 temporarily suspended our share repurchase program in March 2020 as a precautionary measure in light of the COVID-19 pandemic, but resumed the program in late June 2020 after market conditions improved. A summary of common stock repurchases for the nine months ended September 30, 2020 and 2019 is as follows: Nine Months Ended September 30 2020 2019 Shares repurchased 5.0 5.2 Average price per share $ 269.15 $ 270.42 Aggregate cost $ 1,342 $ 1,396 Authorization remaining at the end of the period $ 2,450 $ 4,098 For additional information regarding the use of capital for debt security repurchases, see Note 11, “Debt”, included in 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 nine months ended September 30, 2020 is as follows: Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2020 3.1 $ 190.31 Granted 1.0 271.32 Exercised (0.6) 123.36 Forfeited or expired (0.1) 271.54 Outstanding at September 30, 2020 3.4 223.68 6.84 $ 180 Exercisable at September 30, 2020 1.9 181.32 5.41 $ 176 A summary of the nonvested restricted stock activity, including restricted stock units, for the nine months ended September 30, 2020 is as follows: Restricted Weighted- Nonvested at January 1, 2020 1.4 $ 242.47 Granted 1.3 272.11 Vested (1.2) 194.30 Forfeited (0.1) 271.24 Nonvested at September 30, 2020 1.4 272.04 During the nine months ended September 30, 2020, we granted approximately 0.3 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 nine months ended September 30, 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 nine months ended September 30, 2020 and 2019: Nine Months Ended September 30 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 nine months ended September 30, 2020 and 2019: Nine Months Ended September 30 2020 2019 Options granted during the period $ 54.02 $ 68.69 Restricted stock awards granted during the period 272.11 306.13 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 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 September 30, 2020 and 2019 is as follows: September 30 2020 2019 Investments: Gross unrealized gains $ 1,136 $ 770 Gross unrealized losses (245) (54) Net pre-tax unrealized gains 891 716 Deferred tax liability (216) (164) Net unrealized gains on investments 675 552 Non-credit components of impairments on investments: Unrealized losses (11) (5) Deferred tax asset 3 1 Net unrealized non-credit component of impairments on investments (8) (4) Cash flow hedges: Gross unrealized losses (319) (340) Deferred tax asset 67 63 Net unrealized losses on cash flow hedges (252) (277) Defined benefit pension plans: Deferred net actuarial loss (695) (730) Deferred prior service credits (1) (1) Deferred tax asset 178 188 Net unrecognized periodic benefit costs for defined benefit pension plans (518) (543) Postretirement benefit plans: Deferred net actuarial loss (25) (57) Deferred prior service costs 14 25 Deferred tax asset 3 8 Net unrecognized periodic benefit costs for postretirement benefit plans (8) (24) Foreign currency translation adjustments: Gross unrealized losses (1) (4) Deferred tax asset — 1 Net unrealized losses on foreign currency translation adjustments (1) (3) Accumulated other comprehensive loss $ (112) $ (299) Other comprehensive income (loss) reclassification adjustments for the three months ended September 30, 2020 and 2019 are as follows: Three Months Ended September 30 2020 2019 Investments: Net holding gain on investment securities arising during the period, net of tax expense of ($43) and ($35), respectively $ 152 $ 119 Reclassification adjustment for net realized loss on investment securities, net of tax expense of $10 and $1, respectively (39) (3) Total reclassification adjustment on investments 113 116 Non-credit component of impairments on investments: Non-credit component of impairments on investments, net of tax expense of ($5) and ($0), respectively 16 (1) Cash flow hedges: Holding gain (loss), net of tax expense of ($0) and ($2), respectively 4 (34) Other: Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax expense of ($2) and ($1), respectively 8 4 Foreign currency translation adjustment, net of tax expense of ($1) and ($0), respectively 1 (1) Net gain recognized in other comprehensive income, net of tax expense of ($41) and ($37), respectively $ 142 $ 84 Other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2020 and 2019 are as follows: Nine Months Ended September 30 2020 2019 Investments: Net holding gain on investment securities arising during the period, net of tax expense of ($68) and ($205), respectively $ 182 $ 705 Reclassification adjustment for net realized (gain) loss on investment securities, net of tax expense (benefit) of $7 and ($1), respectively (28) 6 Total reclassification adjustment on investments 154 711 Non-credit component of impairments on investments: Non-credit component of impairments on investments, net of tax benefit of $2 and $0, respectively (6) (2) Cash flow hedges: Holding gain (loss), net of tax expense of ($2) and ($2), respectively 10 (31) Other: Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax expense of ($9) and ($3), respectively 25 10 Foreign currency translation adjustment, net of tax expense of ($1) and ($0), respectively 1 (1) Net gain recognized in other comprehensive income, net of tax expense of ($71) and ($211), respectively $ 184 $ 687 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The denominator for basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019 is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Denominator for basic earnings per share – weighted-average shares 251.0 255.2 251.9 256.3 Effect of dilutive securities – employee stock options, nonvested restricted stock awards and convertible debentures 3.2 4.8 3.4 4.8 Denominator for diluted earnings per share 254.2 260.0 255.3 261.1 During the three months ended September 30, 2020 and 2019, weighted-average shares related to certain stock options of 1.6 and 0.7, respectively, were excluded from the denominator for diluted earnings per share because the stock options were anti-dilutive. During the nine months ended September 30, 2020 and 2019, weighted-average shares related to certain stock options of 1.4 and 0.6, respectively, were excluded from the denominator for diluted earnings per share because the stock options were anti-dilutive. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information 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, as 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 PBM services portfolio, which includes services such as formulary management, pharmacy networks, prescription drug database, member services and mail order capabilities. In 2019, IngenioRx was included in our Other reportable segment. Beginning in 2020, IngenioRx meets the quantitative thresholds for a reportable segment based on the FASB guidance. Amounts for the three and nine months ended September 30, 2019 have been reclassified to conform to the current year presentation for comparability. Our Other segment includes our Diversified Business Group, or DBG, which is our integrated health services business, and 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. 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 and nine months ended September 30, 2020 and 2019 is as follows: Commercial Government IngenioRx Other Eliminations Total Three Months Ended September 30, 2020 Operating revenue - unaffiliated $ 9,326 $ 18,101 $ 2,598 $ 624 $ — $ 30,649 Operating revenue - affiliated — — 2,984 1,174 (4,158) — Operating (loss) gain (234) 246 345 (156) — 201 Three Months Ended September 30, 2019 Operating revenue - unaffiliated $ 9,284 $ 15,955 $ 774 $ 431 $ — $ 26,444 Operating revenue - affiliated — — 1,148 155 (1,303) — Operating gain (loss) 924 616 — (12) — 1,528 Nine Months Ended September 30, 2020 Operating revenue - unaffiliated $ 27,476 $ 52,809 $ 7,485 $ 1,505 $ — $ 89,275 Operating revenue - affiliated — — 8,563 2,772 (11,335) — Operating gain (loss) 2,558 2,275 998 (76) — 5,755 Nine Months Ended September 30, 2019 Operating revenue - unaffiliated $ 28,093 $ 46,419 $ 880 $ 617 $ — $ 76,009 Operating revenue - affiliated — — 1,290 1,063 (2,353) — Operating gain (loss) 3,505 1,470 — (74) — 4,901 The major product revenues for each of the reportable segments for the three and nine months ended September 30, 2020 and 2019 are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Commercial & Specialty Business Managed care products $ 7,523 $ 7,542 $ 22,209 $ 22,806 Managed care services 1,391 1,330 4,036 4,049 Dental/Vision products and services 318 325 917 975 Other 94 87 314 263 Total Commercial & Specialty Business 9,326 9,284 27,476 28,093 Government Business Managed care products 17,999 15,847 52,523 46,111 Managed care services 102 108 286 308 Total Government Business 18,101 15,955 52,809 46,419 IngenioRx Pharmacy products and services 5,582 1,922 16,048 2,170 Total IngenioRx 5,582 1,922 16,048 2,170 Other Other 1,798 586 4,277 1,680 Eliminations Eliminations (4,158) (1,303) (11,335) (2,353) Total product revenues $ 30,649 $ 26,444 $ 89,275 $ 76,009 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 and nine months ended September 30, 2020 and 2019 is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Reportable segments’ operating revenue $ 30,649 $ 26,444 $ 89,275 $ 76,009 Net investment income 280 242 591 737 Net realized gains on financial instruments 247 1 241 90 Impairment losses recognized in income (18) (13) (64) (30) Total revenues $ 31,158 $ 26,674 $ 90,043 $ 76,806 A reconciliation of reportable segments’ operating gain to income before income tax expense included in our consolidated statements of income for the three and nine months ended September 30, 2020 and 2019 is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Reportable segments’ operating gain $ 201 $ 1,528 $ 5,755 $ 4,901 Net investment income 280 242 591 737 Net realized gains on financial instruments 247 1 241 90 Impairment losses recognized in income (18) (13) (64) (30) Interest expense (198) (185) (593) (556) Amortization of other intangible assets (93) (84) (269) (256) (Loss) gain on extinguishment of debt (30) — (34) 1 Income before income tax expense $ 389 $ 1,489 $ 5,627 $ 4,887 |
Leases
Leases | 9 Months Ended |
Sep. 30, 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 12 years. The information related to our leases is as follows: Balance Sheet Location September 30, 2020 December 31, 2019 Operating Leases Right-of-use assets Other noncurrent assets $ 679 $ 575 Lease liabilities, current Other current liabilities 192 158 Lease liabilities, noncurrent Other noncurrent liabilities 798 482 Three Months Ended Nine Months Ended 2020 2019 2020 2019 Lease Expense Operating lease expense $ 272 $ 48 $ 378 $ 138 Short-term lease expense 11 9 38 33 Sublease income (1) (4) (8) (12) Total lease expense $ 282 $ 53 $ 408 $ 159 Our activities as disclosed in Note 4, “Business Optimization Initiatives”, include reducing our office space footprint. As a result, we performed an interim impairment test and recorded an impairment charge of $224 for affected right-of-use assets during the three and nine months ended September 30, 2020 which is included in the operating lease expense shown above. Three Months Ended Nine Months Ended 2020 2019 2020 2019 Other information Operating cash paid for amounts included in the measurement of lease liabilities, operating leases $ 47 $ 43 $ 137 $ 132 Right-of-use assets obtained in exchange for new lease liabilities, operating leases $ 17 $ 33 $ 372 $ 33 As of September 30, 2020 and December 31, 2019, the weighted average remaining lease term of our operating leases was 7 years and 6 years, respectively. The lease liabilities reflect a weighted average discount rate of 3.26% at September 30, 2020 and 4.09% at December 31, 2019. Future lease payments for noncancellable operating leases with initial or remaining terms of one year or more are as follows: 2020 (excluding the nine months ended September 30, 2020) $ 50 2021 195 2022 179 2023 157 2024 125 Thereafter 322 Total future minimum payments 1,028 Less imputed interest (38) Total lease liabilities $ 990 As of September 30, 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 $142. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 16, “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 and nine months ended September 30, 2020 and 2019 have been recorded. The results of operations for the three and nine months ended September 30, 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 $179 and $215 at September 30, 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 may enable 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. |
Receivable | Receivables: Receivables are reported net of amounts for expected credit losses. The allowance for doubtful accounts is based on historical collection trends, future forecasts and our judgment regarding the ability to collect specific accounts. 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 $250 and $237 at September 30, 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 September 30, 2020 and December 31, 2019, respectively. 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 $390 and $242 at September 30, 2020 and December 31, 2019, respectively. |
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 September 30, 2020. For the three and nine months ended September 30, 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 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 balance sheet 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 October 2020, the FASB issued Accounting Standards Update No. 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs , or ASU 2020-08. The amendments clarify when an entity should assess whether a callable debt security is within the scope of accounting guidance, which impacts the amortization period for nonrefundable fees and other costs. ASU 2020-08 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. Upon adoption, the amendments are to be applied on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. We are currently evaluating the effects the adoption of ASU 2020-08 will have on our consolidated financial statements. In August 2020, the FASB issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, or ASU 2020-06 . The amendments eliminate two of the three accounting models that require separate accounting for convertible features of debt securities, simplify the contract settlement assessment for equity classification, require the use of the if-converted method for all convertible instruments in the diluted earnings per share calculation and expand disclosure requirements. The amendments are effective for our annual and interim reporting periods beginning after December 15, 2021, with early adoption permitted for reporting periods beginning after December 15, 2020. The guidance can be applied on a full retrospective basis to all periods presented or a modified retrospective basis with a cumulative effect adjustment to the opening balance of retained earnings during the period of adoption. We are currently evaluating the effects the adoption of ASU 2020-06 will have on our consolidated financial statements and disclosures. 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 Accounting Standards Codification 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) | 9 Months Ended |
Sep. 30, 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 September 30, 2020 and December 31, 2019 is as follows: Cost or Non-Credit Gross Gross Unrealized Losses Allowance For Credit Losses Estimated Less than 12 Months September 30, 2020 Fixed maturity securities: United States Government securities $ 802 $ 17 $ (6) $ — $ — $ 813 $ — Government sponsored securities 75 6 — — — 81 — Foreign government securities 296 10 (13) — (1) 292 — States, municipalities and political subdivisions 5,042 339 (18) — — 5,363 — Corporate securities 10,140 579 (114) (23) (11) 10,571 (10) Residential mortgage-backed securities 4,075 151 (48) (10) — 4,168 (1) Commercial mortgage-backed securities 76 3 (1) (3) — 75 — Other securities 1,891 31 (14) (6) — 1,902 — Total fixed maturity securities $ 22,397 $ 1,136 $ (214) $ (42) $ (12) $ 23,265 $ (11) 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 September 30, 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 Estimated Gross Number of Estimated Gross September 30, 2020 Fixed maturity securities: United States Government securities 17 $ 377 $ (6) — $ — $ — Government sponsored securities 1 1 — 1 — — Foreign government securities 191 141 (13) — — — States, municipalities and political subdivisions 283 512 (18) 1 3 — Corporate securities 1,481 2,140 (114) 146 171 (23) Residential mortgage-backed securities 407 976 (48) 82 108 (10) Commercial mortgage-backed securities 6 17 (1) 3 4 (3) Other securities 302 763 (14) 75 185 (6) Total fixed maturity securities 2,688 $ 4,927 $ (214) 308 $ 471 $ (42) 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 September 30, 2020: Three Months Ended September 30 Corporate Securities Foreign Government Securities Total Allowance for credit losses: Beginning balance $ 23 $ 1 $ 24 Additions for securities for which no previous expected credit losses were recognized 1 — 1 Securities sold during the period (5) — (5) Decreases to the allowance for credit losses on securities (8) — (8) Total allowance for credit losses $ 11 $ 1 $ 12 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 nine months ended September 30, 2020: Nine Months Ended September 30 Corporate Securities Foreign Government Securities Total Allowance for credit losses: Beginning balance $ — $ — $ — Additions for securities for which no previous expected credit losses were recognized 61 1 62 Securities sold during the period (13) — (13) Decreases to the allowance for credit losses on securities (37) — (37) Total allowance for credit losses $ 11 $ 1 $ 12 |
Amortized Cost and Fair Value of Fixed Maturity Securities, By Contractual Maturity | The amortized cost and fair value of fixed maturity securities at September 30, 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 Estimated Due in one year or less $ 772 $ 780 Due after one year through five years 5,813 6,023 Due after five years through ten years 6,741 7,023 Due after ten years 4,920 5,196 Mortgage-backed securities 4,151 4,243 Total fixed maturity securities $ 22,397 $ 23,265 |
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 and nine months ended September 30, 2020 and 2019 are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Proceeds $ 4,597 $ 2,048 $ 9,146 $ 5,502 Gross realized gains 51 26 131 66 Gross realized losses (14) (9) (84) (43) |
Investments In Equity Securities | A summary of marketable equity securities at September 30, 2020 and December 31, 2019 is as follows: September 30, 2020 December 31, 2019 Equity securities: Exchange traded funds $ 2,646 $ 44 Fixed maturity mutual funds 143 643 Common equity securities 225 237 Private equity securities 61 85 Total $ 3,075 $ 1,009 |
Gains (Losses) Related to Equity Securities | The gains and losses related to equity securities for the three and nine months ended September 30, 2020 and 2019 are as follows: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Net realized gains (losses) recognized on equity securities $ 188 $ (16) $ 183 $ 75 Less: Net realized gains recognized on equity securities sold during the period (15) (6) (20) (55) Unrealized gains (losses) recognized on equity securities still held at September 30 $ 173 $ (22) $ 163 $ 20 |
Securities Lending Programs | The remaining contractual maturity of our securities lending agreements at September 30, 2020 is as follows: Overnight and Continuous Securities lending collateral Cash $ 898 United States Government securities 121 Total $ 1,019 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2020 and December 31, 2019 is as follows: Level I Level II Level III Total September 30, 2020 Assets: Cash equivalents $ 1,764 $ — $ — $ 1,764 Fixed maturity securities, available-for-sale: United States Government securities — 813 — 813 Government sponsored securities — 81 — 81 Foreign government securities — 292 — 292 States, municipalities and political subdivisions, tax-exempt — 5,363 — 5,363 Corporate securities — 10,258 313 10,571 Residential mortgage-backed securities — 4,166 2 4,168 Commercial mortgage-backed securities — 75 — 75 Other securities — 1,897 5 1,902 Total fixed maturity securities, available-for-sale — 22,945 320 23,265 Equity securities: Exchange traded funds 2,646 — — 2,646 Fixed maturity mutual funds — 143 — 143 Common equity securities 197 28 — 225 Private equity securities — — 61 61 Total equity securities 2,843 171 61 3,075 Securities lending collateral — 1,019 — 1,019 Derivatives — 40 — 40 Total assets $ 4,607 $ 24,175 $ 381 $ 29,163 Liabilities: Derivatives $ — $ (1) $ — $ (1) Total liabilities $ — $ (1) $ — $ (1) 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 September 30, 2020 and 2019 is as follows: Corporate Residential Other Equity Total Three Months Ended September 30, 2020 Beginning balance at July 1, 2020 $ 314 $ 2 $ 5 $ 62 $ 383 Total (losses) gains: Recognized in net income (1) — — (3) (4) Recognized in accumulated other comprehensive loss 14 — — — 14 Purchases 5 — — 2 7 Sales (5) — — — (5) Settlements (14) — — — (14) Ending balance at September 30, 2020 $ 313 $ 2 $ 5 $ 61 $ 381 Change in unrealized losses included in net income related to assets still held at September 30, 2020 $ — $ — $ — $ (3) $ (3) Three Months Ended September 30, 2019 Beginning balance at July 1, 2019 $ 297 $ 3 $ 11 $ 305 $ 616 Total (losses) gains: Recognized in net income (3) — — (5) (8) Recognized in accumulated other comprehensive loss 12 — — — 12 Purchases 28 — — 25 53 Sales (9) — — (19) (28) Settlements (18) — — — (18) Transfers into Level III 4 — — — 4 Ending balance at September 30, 2019 $ 311 $ 3 $ 11 $ 306 $ 631 Change in unrealized losses included in net income related to assets still held at September 30, 2019 $ — $ — $ — $ (4) $ (4) A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the nine months ended September 30, 2020 and 2019 is as follows: Corporate Residential Other Equity Total Nine Months Ended September 30, 2020 Beginning balance at January 1, 2020 $ 303 $ 2 $ 7 $ 85 $ 397 Total losses: Recognized in net income (2) — — (19) (21) Recognized in accumulated other comprehensive loss (3) — — — (3) Purchases 44 — — 17 61 Sales (9) — — (22) (31) Settlements (33) — (2) — (35) Transfers into Level III 13 — — — 13 Ending balance at September 30, 2020 $ 313 $ 2 $ 5 $ 61 $ 381 Change in unrealized losses included in net income related to assets still held at September 30, 2020 $ — $ — $ — $ (20) $ (20) Nine Months Ended September 30, 2019 Beginning balance at January 1, 2019 $ 287 $ 6 $ 17 $ 313 $ 623 Total (losses) gains: Recognized in net income (7) — — (5) (12) Recognized in accumulated other comprehensive loss 14 — — — 14 Purchases 91 — 2 46 139 Sales (11) — — (48) (59) Settlements (58) (1) (2) — (61) Transfers into Level III 4 — 3 — 7 Transfers out of Level III (9) (2) (9) — (20) Ending balance at September 30, 2019 $ 311 $ 3 $ 11 $ 306 $ 631 Change in unrealized losses included in net income related to assets still held at September 30, 2019 $ — $ — $ — $ (4) $ (4) |
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 September 30, 2020 and December 31, 2019 is as follows: Carrying Estimated Fair Value Level I Level II Level III Total September 30, 2020 Assets: Other invested assets $ 4,170 $ — $ — $ 4,170 $ 4,170 Liabilities: Debt: Short-term borrowings 150 — 150 — 150 Notes 20,574 — 23,714 — 23,714 Convertible debentures 119 — 656 — 656 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) | 9 Months Ended |
Sep. 30, 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 September 30, 2020 and 2019 are as follows: Pension Benefits Other Benefits Three Months Ended Three Months Ended 2020 2019 2020 2019 Service cost $ — $ — $ — $ 1 Interest cost 12 15 3 3 Expected return on assets (35) (35) (6) (6) Recognized actuarial loss 6 5 — 1 Settlement loss 6 4 — — Amortization of prior service credit — — (2) (3) Net periodic benefit credit $ (11) $ (11) $ (5) $ (4) The components of net periodic benefit credit included in our consolidated statements of income for the nine months ended September 30, 2020 and 2019 are as follows: Pension Benefits Other Benefits Nine Months Ended Nine Months Ended 2020 2019 2020 2019 Service cost $ — $ — $ — $ 1 Interest cost 37 47 8 11 Expected return on assets (104) (104) (18) (17) Recognized actuarial loss 18 13 — 2 Settlement loss 21 8 — — Amortization of prior service credit — — (6) (9) Net periodic benefit credit $ (28) $ (36) $ (16) $ (12) |
Medical Claims Payable (Tables)
Medical Claims Payable (Tables) | 9 Months Ended |
Sep. 30, 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 16, “Segment Information”), for the nine months ended September 30, 2020 is as follows: Commercial Government 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 17,964 43,135 878 61,977 Prior periods redundancies (379) (321) — (700) Total net incurred medical claims 17,585 42,814 878 61,277 Net payments attributable to: Current period medical claims 15,319 36,680 880 52,879 Prior periods medical claims 2,426 5,063 — 7,489 Total net payments 17,745 41,743 880 60,368 Net medical claims payable, end of period 2,865 6,801 196 9,862 Ceded medical claims payable, end of period 102 27 — 129 Gross medical claims payable, end of period $ 2,967 $ 6,828 $ 196 $ 9,991 Activity in the Other segment resulted from our acquisition of Beacon. At September 30, 2020, the total of net incurred but not reported liabilities plus expected development on reported claims for the Commercial & Specialty Business was $30, $189 and $2,646 for the claim years 2018 and prior, 2019 and 2020, respectively. At September 30, 2020, the total of net incurred but not reported liabilities plus expected development on reported claims for the Government Business was $42, $163 and $6,596 for the claim years 2018 and prior, 2019 and 2020, respectively. At September 30, 2020, the total of net incurred but not reported liabilities plus expected development on reported claims for Other was $0, $0 and $196 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 16, “Segment Information”), for the nine months ended September 30, 2019 is as follows: Commercial Government 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 18,986 39,171 — 58,157 Prior periods redundancies (162) (275) — (437) Total net incurred medical claims 18,824 38,896 — 57,720 Net payments attributable to: Current period medical claims 16,277 33,474 — 49,751 Prior periods medical claims 2,213 4,253 — 6,466 Total net payments 18,490 37,727 — 56,217 Net medical claims payable, end of period 2,910 5,825 — 8,735 Ceded medical claims payable, end of period 8 27 — 35 Gross medical claims payable, end of period $ 2,918 $ 5,852 $ — $ 8,770 |
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 Nine Months Ended March 31, 2020 June 30, 2020 September 30, 2020 Net incurred medical claims: Commercial & Specialty Business $ 5,797 $ 5,147 $ 6,641 $ 17,585 Government Business 14,603 13,233 14,978 42,814 Other 130 368 $ 380 878 Total net incurred medical claims 20,530 18,748 21,999 61,277 Quality improvement and other claims expense 959 799 922 2,680 Benefit expense $ 21,489 $ 19,547 $ 22,921 $ 63,957 The reconciliation of net incurred medical claims to benefit expense included in our consolidated statements of income for periods in 2019 are as follows: Three Months Ended Nine Months Ended March 31, 2019 June 30, 2019 September 30, 2019 Net incurred medical claims: Commercial & Specialty Business $ 5,856 $ 6,422 $ 6,546 $ 18,824 Government Business 12,483 13,062 13,351 38,896 Total net incurred medical claims 18,339 19,484 19,897 57,720 Quality improvement and other claims expense 943 884 856 2,683 Benefit expense $ 19,282 $ 20,368 $ 20,753 $ 60,403 |
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 September 30, 2020, is as follows: Commercial Government Other Total Net medical claims payable, end of period $ 2,865 $ 6,801 $ 196 $ 9,862 Ceded medical claims payable, end of period 102 27 — 129 Insurance lines other than short duration — 261 — 261 Gross medical claims payable, end of period $ 2,967 $ 7,089 $ 196 $ 10,252 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Debenture Terms | The following table summarizes at September 30, 2020 the related balances, conversion rate and conversion price of the Debentures: Outstanding principal amount $ 175 Unamortized debt discount $ 54 Net debt carrying amount $ 119 Equity component carrying amount $ 63 Conversion rate (shares of common stock per $1,000 of principal amount) 14.0519 Effective conversion price (per $1,000 of principal amount) $ 71.1648 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Capital [Abstract] | |
Summary of Cash Dividend Activity | A summary of our cash dividend activity for the nine months ended September 30, 2020 and 2019 is as follows: Declaration Date Record Date Payment Date Cash Dividend per Share Total Nine Months Ended September 30, 2020 January 28, 2020 March 16, 2020 March 27, 2020 $0.95 $ 240 April 28, 2020 June 10, 2020 June 25, 2020 $0.95 $ 242 July 28, 2020 September 10, 2020 September 25, 2020 $0.95 $ 238 Nine Months Ended September 30, 2019 January 29, 2019 March 18, 2019 March 29, 2019 $0.80 $ 206 April 23, 2019 June 10, 2019 June 25, 2019 $0.80 $ 206 July 23, 2019 September 10, 2019 September 25, 2019 $0.80 $ 204 |
Summary of Share Repurchases | A summary of common stock repurchases for the nine months ended September 30, 2020 and 2019 is as follows: Nine Months Ended September 30 2020 2019 Shares repurchased 5.0 5.2 Average price per share $ 269.15 $ 270.42 Aggregate cost $ 1,342 $ 1,396 Authorization remaining at the end of the period $ 2,450 $ 4,098 |
Summary of Stock Option Activity | A summary of stock option activity for the nine months ended September 30, 2020 is as follows: Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2020 3.1 $ 190.31 Granted 1.0 271.32 Exercised (0.6) 123.36 Forfeited or expired (0.1) 271.54 Outstanding at September 30, 2020 3.4 223.68 6.84 $ 180 Exercisable at September 30, 2020 1.9 181.32 5.41 $ 176 |
Summary of Nonvested Restricted Stock Activity Including Restricted Stock Units | A summary of the nonvested restricted stock activity, including restricted stock units, for the nine months ended September 30, 2020 is as follows: Restricted Weighted- Nonvested at January 1, 2020 1.4 $ 242.47 Granted 1.3 272.11 Vested (1.2) 194.30 Forfeited (0.1) 271.24 Nonvested at September 30, 2020 1.4 272.04 |
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 nine months ended September 30, 2020 and 2019: Nine Months Ended September 30 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 nine months ended September 30, 2020 and 2019: Nine Months Ended September 30 2020 2019 Options granted during the period $ 54.02 $ 68.69 Restricted stock awards granted during the period 272.11 306.13 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2020 and 2019 is as follows: September 30 2020 2019 Investments: Gross unrealized gains $ 1,136 $ 770 Gross unrealized losses (245) (54) Net pre-tax unrealized gains 891 716 Deferred tax liability (216) (164) Net unrealized gains on investments 675 552 Non-credit components of impairments on investments: Unrealized losses (11) (5) Deferred tax asset 3 1 Net unrealized non-credit component of impairments on investments (8) (4) Cash flow hedges: Gross unrealized losses (319) (340) Deferred tax asset 67 63 Net unrealized losses on cash flow hedges (252) (277) Defined benefit pension plans: Deferred net actuarial loss (695) (730) Deferred prior service credits (1) (1) Deferred tax asset 178 188 Net unrecognized periodic benefit costs for defined benefit pension plans (518) (543) Postretirement benefit plans: Deferred net actuarial loss (25) (57) Deferred prior service costs 14 25 Deferred tax asset 3 8 Net unrecognized periodic benefit costs for postretirement benefit plans (8) (24) Foreign currency translation adjustments: Gross unrealized losses (1) (4) Deferred tax asset — 1 Net unrealized losses on foreign currency translation adjustments (1) (3) Accumulated other comprehensive loss $ (112) $ (299) |
Other Comprehensive Income (Loss) Reclassification Adjustments | Other comprehensive income (loss) reclassification adjustments for the three months ended September 30, 2020 and 2019 are as follows: Three Months Ended September 30 2020 2019 Investments: Net holding gain on investment securities arising during the period, net of tax expense of ($43) and ($35), respectively $ 152 $ 119 Reclassification adjustment for net realized loss on investment securities, net of tax expense of $10 and $1, respectively (39) (3) Total reclassification adjustment on investments 113 116 Non-credit component of impairments on investments: Non-credit component of impairments on investments, net of tax expense of ($5) and ($0), respectively 16 (1) Cash flow hedges: Holding gain (loss), net of tax expense of ($0) and ($2), respectively 4 (34) Other: Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax expense of ($2) and ($1), respectively 8 4 Foreign currency translation adjustment, net of tax expense of ($1) and ($0), respectively 1 (1) Net gain recognized in other comprehensive income, net of tax expense of ($41) and ($37), respectively $ 142 $ 84 Other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2020 and 2019 are as follows: Nine Months Ended September 30 2020 2019 Investments: Net holding gain on investment securities arising during the period, net of tax expense of ($68) and ($205), respectively $ 182 $ 705 Reclassification adjustment for net realized (gain) loss on investment securities, net of tax expense (benefit) of $7 and ($1), respectively (28) 6 Total reclassification adjustment on investments 154 711 Non-credit component of impairments on investments: Non-credit component of impairments on investments, net of tax benefit of $2 and $0, respectively (6) (2) Cash flow hedges: Holding gain (loss), net of tax expense of ($2) and ($2), respectively 10 (31) Other: Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax expense of ($9) and ($3), respectively 25 10 Foreign currency translation adjustment, net of tax expense of ($1) and ($0), respectively 1 (1) Net gain recognized in other comprehensive income, net of tax expense of ($71) and ($211), respectively $ 184 $ 687 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2020 and 2019 is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Denominator for basic earnings per share – weighted-average shares 251.0 255.2 251.9 256.3 Effect of dilutive securities – employee stock options, nonvested restricted stock awards and convertible debentures 3.2 4.8 3.4 4.8 Denominator for diluted earnings per share 254.2 260.0 255.3 261.1 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Financial Data By Reportable Segment | Financial data by reportable segment for the three and nine months ended September 30, 2020 and 2019 is as follows: Commercial Government IngenioRx Other Eliminations Total Three Months Ended September 30, 2020 Operating revenue - unaffiliated $ 9,326 $ 18,101 $ 2,598 $ 624 $ — $ 30,649 Operating revenue - affiliated — — 2,984 1,174 (4,158) — Operating (loss) gain (234) 246 345 (156) — 201 Three Months Ended September 30, 2019 Operating revenue - unaffiliated $ 9,284 $ 15,955 $ 774 $ 431 $ — $ 26,444 Operating revenue - affiliated — — 1,148 155 (1,303) — Operating gain (loss) 924 616 — (12) — 1,528 Nine Months Ended September 30, 2020 Operating revenue - unaffiliated $ 27,476 $ 52,809 $ 7,485 $ 1,505 $ — $ 89,275 Operating revenue - affiliated — — 8,563 2,772 (11,335) — Operating gain (loss) 2,558 2,275 998 (76) — 5,755 Nine Months Ended September 30, 2019 Operating revenue - unaffiliated $ 28,093 $ 46,419 $ 880 $ 617 $ — $ 76,009 Operating revenue - affiliated — — 1,290 1,063 (2,353) — Operating gain (loss) 3,505 1,470 — (74) — 4,901 |
Major Product Revenue by Segment | The major product revenues for each of the reportable segments for the three and nine months ended September 30, 2020 and 2019 are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Commercial & Specialty Business Managed care products $ 7,523 $ 7,542 $ 22,209 $ 22,806 Managed care services 1,391 1,330 4,036 4,049 Dental/Vision products and services 318 325 917 975 Other 94 87 314 263 Total Commercial & Specialty Business 9,326 9,284 27,476 28,093 Government Business Managed care products 17,999 15,847 52,523 46,111 Managed care services 102 108 286 308 Total Government Business 18,101 15,955 52,809 46,419 IngenioRx Pharmacy products and services 5,582 1,922 16,048 2,170 Total IngenioRx 5,582 1,922 16,048 2,170 Other Other 1,798 586 4,277 1,680 Eliminations Eliminations (4,158) (1,303) (11,335) (2,353) Total product revenues $ 30,649 $ 26,444 $ 89,275 $ 76,009 |
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 and nine months ended September 30, 2020 and 2019 is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Reportable segments’ operating revenue $ 30,649 $ 26,444 $ 89,275 $ 76,009 Net investment income 280 242 591 737 Net realized gains on financial instruments 247 1 241 90 Impairment losses recognized in income (18) (13) (64) (30) Total revenues $ 31,158 $ 26,674 $ 90,043 $ 76,806 |
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 and nine months ended September 30, 2020 and 2019 is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Reportable segments’ operating gain $ 201 $ 1,528 $ 5,755 $ 4,901 Net investment income 280 242 591 737 Net realized gains on financial instruments 247 1 241 90 Impairment losses recognized in income (18) (13) (64) (30) Interest expense (198) (185) (593) (556) Amortization of other intangible assets (93) (84) (269) (256) (Loss) gain on extinguishment of debt (30) — (34) 1 Income before income tax expense $ 389 $ 1,489 $ 5,627 $ 4,887 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | The information related to our leases is as follows: Balance Sheet Location September 30, 2020 December 31, 2019 Operating Leases Right-of-use assets Other noncurrent assets $ 679 $ 575 Lease liabilities, current Other current liabilities 192 158 Lease liabilities, noncurrent Other noncurrent liabilities 798 482 Three Months Ended Nine Months Ended 2020 2019 2020 2019 Lease Expense Operating lease expense $ 272 $ 48 $ 378 $ 138 Short-term lease expense 11 9 38 33 Sublease income (1) (4) (8) (12) Total lease expense $ 282 $ 53 $ 408 $ 159 Our activities as disclosed in Note 4, “Business Optimization Initiatives”, include reducing our office space footprint. As a result, we performed an interim impairment test and recorded an impairment charge of $224 for affected right-of-use assets during the three and nine months ended September 30, 2020 which is included in the operating lease expense shown above. Three Months Ended Nine Months Ended 2020 2019 2020 2019 Other information Operating cash paid for amounts included in the measurement of lease liabilities, operating leases $ 47 $ 43 $ 137 $ 132 Right-of-use assets obtained in exchange for new lease liabilities, operating leases $ 17 $ 33 $ 372 $ 33 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future lease payments for noncancellable operating leases with initial or remaining terms of one year or more are as follows: 2020 (excluding the nine months ended September 30, 2020) $ 50 2021 195 2022 179 2023 157 2024 125 Thereafter 322 Total future minimum payments 1,028 Less imputed interest (38) Total lease liabilities $ 990 |
Organization (Details)
Organization (Details) medical_member in Millions | Sep. 30, 2020medical_memberstatescounty |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Medical Members | medical_member | 43 |
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 | 9 Months Ended | |||
Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ 179 | 215 | ||
Securities lending transactions, initial collateral percentage value | 102.00% | |||
Premium receivable, allowance for doubtful accounts | $ 250 | 237 | ||
Self-funded receivables, allowance for doubtful accounts | 55 | 46 | ||
Allowance for doubtful accounts, Other Receivables, current | $ 390 | $ 242 |
Business Acquisitions Business
Business Acquisitions Business Acquisition (Assets Liabilities Acquired) (Details) individual_member in Millions, $ in Millions | 9 Months Ended | ||
Sep. 30, 2020USD ($)states | Feb. 28, 2020individual_memberstates | Dec. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 21,687 | $ 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] | Other Segment [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 1,067 | ||
Other intangible assets | $ 752 | ||
Minimum [Member] | Beacon Health Options [Member] | Other Segment [Member] | Customer relationships and provider networks | |||
Business Acquisition [Line Items] | |||
Intangible assets amortization period, years | 9 years | ||
Maximum [Member] | Beacon Health Options [Member] | Other Segment [Member] | Customer relationships and provider networks | |||
Business Acquisition [Line Items] | |||
Intangible assets amortization period, years | 21 years |
Business Optimization Initiat_2
Business Optimization Initiatives Narrative (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Business Optimization Initiatives [Line Items] | |
Business Optimization Initiatives and Related Cost, Incurred Cost | $ 607 |
Employee Severance [Member] | |
Business Optimization Initiatives [Line Items] | |
Business Optimization Initiatives and Related Cost, Incurred Cost | 188 |
PPE Impairment [Member] | |
Business Optimization Initiatives [Line Items] | |
Business Optimization Initiatives and Related Cost, Incurred Cost | 195 |
Lease Impairment [Member] | |
Business Optimization Initiatives [Line Items] | |
Business Optimization Initiatives and Related Cost, Incurred Cost | 224 |
Other Segment [Member] | |
Business Optimization Initiatives [Line Items] | |
Business Optimization Initiatives and Related Cost, Incurred Cost | 122 |
IngenioRx Segment [Member] | |
Business Optimization Initiatives [Line Items] | |
Business Optimization Initiatives and Related Cost, Incurred Cost | 3 |
Government Business Segment [Member] | |
Business Optimization Initiatives [Line Items] | |
Business Optimization Initiatives and Related Cost, Incurred Cost | 183 |
Commercial Specialty Business Segment [Member] | |
Business Optimization Initiatives [Line Items] | |
Business Optimization Initiatives and Related Cost, Incurred Cost | $ 299 |
Investments (Current And Long-T
Investments (Current And Long-Term Fixed Maturity Securities, Available-For-Sale) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Sep. 30, 2019 | |
Investments [Line Items] | ||||
Gross Unrealized Gains | $ 1,136 | $ 770 | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 12 | $ 0 | $ 24 | |
Foreign Government Securities [Member] | ||||
Investments [Line Items] | ||||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 1 | 0 | 1 | |
Corporate Securities [Member] | ||||
Investments [Line Items] | ||||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 11 | 0 | $ 23 | |
Fixed Maturities [Member] | ||||
Investments [Line Items] | ||||
Cost or Amortized Cost | 22,397 | 19,508 | ||
Gross Unrealized Gains | 1,136 | 720 | ||
Gross Unrealized Losses, Less than 12 Months | (214) | (24) | ||
Gross Unrealized Losses, 12 Months or Greater | (42) | (23) | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | (12) | 0 | ||
Available-for-sale Securities | 23,265 | 20,181 | ||
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Loss | (11) | (3) | ||
Fixed Maturities [Member] | United States Government Securities [Member] | ||||
Investments [Line Items] | ||||
Cost or Amortized Cost | 802 | 524 | ||
Gross Unrealized Gains | 17 | 4 | ||
Gross Unrealized Losses, Less than 12 Months | (6) | (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 | 813 | 525 | ||
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Loss | 0 | 0 | ||
Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||||
Investments [Line Items] | ||||
Cost or Amortized Cost | 75 | 136 | ||
Gross Unrealized Gains | 6 | 5 | ||
Gross Unrealized Losses, Less than 12 Months | 0 | 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 | 81 | 141 | ||
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Loss | 0 | 0 | ||
Fixed Maturities [Member] | Foreign Government Securities [Member] | ||||
Investments [Line Items] | ||||
Cost or Amortized Cost | 296 | |||
Gross Unrealized Gains | 10 | |||
Gross Unrealized Losses, Less than 12 Months | (13) | |||
Gross Unrealized Losses, 12 Months or Greater | 0 | |||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | (1) | |||
Available-for-sale Securities | 292 | |||
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Loss | 0 | |||
Fixed Maturities [Member] | States, Municipalities And Political Subdivisions [Member] | ||||
Investments [Line Items] | ||||
Cost or Amortized Cost | 5,042 | 4,592 | ||
Gross Unrealized Gains | 339 | 262 | ||
Gross Unrealized Losses, Less than 12 Months | (18) | (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 | 5,363 | 4,851 | ||
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Loss | 0 | 0 | ||
Fixed Maturities [Member] | Corporate Securities [Member] | ||||
Investments [Line Items] | ||||
Cost or Amortized Cost | 10,140 | 8,870 | ||
Gross Unrealized Gains | 579 | 339 | ||
Gross Unrealized Losses, Less than 12 Months | (114) | (9) | ||
Gross Unrealized Losses, 12 Months or Greater | (23) | (15) | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | (11) | 0 | ||
Available-for-sale Securities | 10,571 | 9,185 | ||
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Loss | (10) | (3) | ||
Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||||
Investments [Line Items] | ||||
Cost or Amortized Cost | 4,075 | 3,654 | ||
Gross Unrealized Gains | 151 | 87 | ||
Gross Unrealized Losses, Less than 12 Months | (48) | (6) | ||
Gross Unrealized Losses, 12 Months or Greater | (10) | (3) | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | ||
Available-for-sale Securities | 4,168 | 3,732 | ||
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Loss | (1) | 0 | ||
Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||||
Investments [Line Items] | ||||
Cost or Amortized Cost | 76 | 84 | ||
Gross Unrealized Gains | 3 | 2 | ||
Gross Unrealized Losses, Less than 12 Months | (1) | 0 | ||
Gross Unrealized Losses, 12 Months or Greater | (3) | 0 | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | ||
Available-for-sale Securities | 75 | 86 | ||
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Loss | 0 | 0 | ||
Fixed Maturities [Member] | Other Securities [Member] | ||||
Investments [Line Items] | ||||
Cost or Amortized Cost | 1,891 | 1,648 | ||
Gross Unrealized Gains | 31 | 21 | ||
Gross Unrealized Losses, Less than 12 Months | (14) | (3) | ||
Gross Unrealized Losses, 12 Months or Greater | (6) | (5) | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | ||
Available-for-sale Securities | 1,902 | 1,661 | ||
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Loss | $ 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 | Sep. 30, 2020USD ($)securities | Dec. 31, 2019USD ($)securities |
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 2,688 | 1,029 |
Estimated fair value, less than 12 months | $ 4,927 | $ 2,179 |
Gross unrealized loss, less than 12 months | $ (214) | $ (24) |
Number of securities, 12 months or greater | securities | 308 | 549 |
Estimated fair value, 12 months or greater | $ 471 | $ 902 |
Gross unrealized loss, 12 months or greater | $ (42) | $ (23) |
United States Government Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 17 | 27 |
Estimated fair value, less than 12 months | $ 377 | $ 250 |
Gross unrealized loss, less than 12 months | $ (6) | $ (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 | 1 | 14 |
Estimated fair value, less than 12 months | $ 1 | $ 12 |
Gross unrealized loss, less than 12 months | $ 0 | $ 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 |
Foreign Government Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 191 | |
Estimated fair value, less than 12 months | $ 141 | |
Gross unrealized loss, less than 12 months | $ (13) | |
Number of securities, 12 months or greater | securities | 0 | |
Estimated fair value, 12 months or greater | $ 0 | |
Gross unrealized loss, 12 months or greater | $ 0 | |
States, Municipalities And Political Subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 283 | 114 |
Estimated fair value, less than 12 months | $ 512 | $ 306 |
Gross unrealized loss, less than 12 months | $ (18) | $ (3) |
Number of securities, 12 months or greater | securities | 1 | 14 |
Estimated fair value, 12 months or greater | $ 3 | $ 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 | 1,481 | 386 |
Estimated fair value, less than 12 months | $ 2,140 | $ 558 |
Gross unrealized loss, less than 12 months | $ (114) | $ (9) |
Number of securities, 12 months or greater | securities | 146 | 224 |
Estimated fair value, 12 months or greater | $ 171 | $ 286 |
Gross unrealized loss, 12 months or greater | $ (23) | $ (15) |
Residential Mortgage-Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 407 | 321 |
Estimated fair value, less than 12 months | $ 976 | $ 635 |
Gross unrealized loss, less than 12 months | $ (48) | $ (6) |
Number of securities, 12 months or greater | securities | 82 | 189 |
Estimated fair value, 12 months or greater | $ 108 | $ 237 |
Gross unrealized loss, 12 months or greater | $ (10) | $ (3) |
Commercial Mortgage-Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 6 | 1 |
Estimated fair value, less than 12 months | $ 17 | $ 3 |
Gross unrealized loss, less than 12 months | $ (1) | $ 0 |
Number of securities, 12 months or greater | securities | 3 | 4 |
Estimated fair value, 12 months or greater | $ 4 | $ 8 |
Gross unrealized loss, 12 months or greater | $ (3) | $ 0 |
Other Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 302 | 166 |
Estimated fair value, less than 12 months | $ 763 | $ 415 |
Gross unrealized loss, less than 12 months | $ (14) | $ (3) |
Number of securities, 12 months or greater | securities | 75 | 113 |
Estimated fair value, 12 months or greater | $ 185 | $ 358 |
Gross unrealized loss, 12 months or greater | $ (6) | $ (5) |
Investments (Allowance For Cred
Investments (Allowance For Credit Loss Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Additions for securities for which no previous expected credit losses were recognized | $ 1 | $ 62 | ||
Allowance for credit loss, securities sold | (5) | (13) | ||
Increase (decrease) to the allowance for credit losses on securities | (8) | (37) | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 12 | 12 | $ 24 | $ 0 |
Corporate Securities [Member] | ||||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Additions for securities for which no previous expected credit losses were recognized | 1 | 61 | ||
Allowance for credit loss, securities sold | (5) | (13) | ||
Increase (decrease) to the allowance for credit losses on securities | (8) | (37) | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | 11 | 11 | 23 | 0 |
Foreign Government Securities [Member] | ||||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Additions for securities for which no previous expected credit losses were recognized | 0 | 1 | ||
Allowance for credit loss, securities sold | 0 | 0 | ||
Increase (decrease) to the allowance for credit losses on securities | 0 | 0 | ||
Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss | $ 1 | $ 1 | $ 1 | $ 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 | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Due in one year or less, Amortized Cost | $ 772 | |
Due after one year through five years, Amortized Cost | 5,813 | |
Due after five years through ten years, Amortized Cost | 6,741 | |
Due after ten years, Amortized Cost | 4,920 | |
Mortgage-backed securities, Amortized Cost | 4,151 | |
Available-for-sale securities, Amortized Cost | 22,397 | $ 19,508 |
Due in one year or less, Estimated Fair Value | 780 | |
Due after one year through five years, Estimated Fair Value | 6,023 | |
Due after five years through ten years, Estimated Fair Value | 7,023 | |
Due after ten years, Estimated Fair Value | 5,196 | |
Mortgage-backed securities, Estimated Fair Value | 4,243 | |
Available-for-sale securities, Estimated Fair Value | $ 23,265 | $ 20,181 |
Investments (Proceeds and Reali
Investments (Proceeds and Realized Gains Losses From Fixed Maturity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fixed Maturity Securities, Available-for-sale [Line Items] | ||||
Proceeds | $ 4,597 | $ 2,048 | $ 9,146 | $ 5,502 |
Gross realized gains | 51 | 26 | 131 | 66 |
Gross realized losses | $ (14) | $ (9) | $ (84) | $ (43) |
Investments (Current and Long_2
Investments (Current and Long-term Equity Securities) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Equity Securities | $ 3,075 | $ 1,009 |
Exchange Traded Funds [Member] | ||
Marketable Securities [Line Items] | ||
Equity Securities | 2,646 | 44 |
Fixed Maturity Mutual Funds [Member] | ||
Marketable Securities [Line Items] | ||
Equity Securities | 143 | 643 |
Common Equity Securities [Member] | ||
Marketable Securities [Line Items] | ||
Equity Securities | 225 | 237 |
Private Equity Funds [Member] | ||
Marketable Securities [Line Items] | ||
Equity Securities | $ 61 | $ 85 |
Investments (Gains and Losses R
Investments (Gains and Losses Recognized on Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of losses and gains related to equity securities [Line Items] | ||||
Net realized gains (losses) on financial instruments | $ 247 | $ 1 | $ 241 | $ 90 |
Equity Securities [Member] | ||||
Schedule of losses and gains related to equity securities [Line Items] | ||||
Net realized gains (losses) on financial instruments | 188 | (16) | 183 | 75 |
Net realized (losses) gains recognized on sale of equity securities during the period | 15 | 6 | 20 | 55 |
Unrealized (losses) gains recognized on equity securities still held | $ 173 | $ (22) | $ 163 | $ 20 |
Investments (Securities Lending
Investments (Securities Lending Programs) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Loaned, Fair Value of Collateral | $ 1,019 | $ 351 |
Securities Lending Transactions Ratio of Fair Value of Collateral Held To Securities On Loan | 102.00% | 103.00% |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | $ 1,019 | |
Overnight and Continuous [Member] | Cash [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 898 | |
Overnight and Continuous [Member] | 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 | $ 121 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | ||
Accrued investment income receivable | $ 184 | $ 173 |
Fair value of collateral received at time of securities lending transactions | $ 1,019 | $ 351 |
Securities Lending Transactions Ratio of Fair Value of Collateral Held To Securities On Loan | 102.00% | 103.00% |
Derivative Financial Instrume_2
Derivative Financial Instruments (Financial Statement Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | $ (252) | $ (277) | |
Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | $ (252) | $ (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 | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 1,764 | $ 2,015 |
Equity Securities | 3,075 | 1,009 |
Securities lending collateral | 1,019 | 353 |
Total assets | 29,163 | 23,581 |
Total liabilities | (1) | (1) |
Exchange Traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 2,646 | 44 |
Fixed Maturity Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 143 | 643 |
Common Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 225 | 237 |
Private Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 61 | 85 |
Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 23,265 | 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 | 813 | 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 | 81 | 141 |
Fixed Maturities [Member] | Foreign Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 292 | |
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 | 5,363 | 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 | 10,571 | 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 | 4,168 | 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 | 75 | 86 |
Fixed Maturities [Member] | Other Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,902 | 1,661 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 3,075 | 1,009 |
Equity Securities [Member] | Exchange Traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 2,646 | 44 |
Equity Securities [Member] | Fixed Maturity Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 143 | 643 |
Equity Securities [Member] | Common Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 225 | 237 |
Equity Securities [Member] | Private Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 61 | 85 |
Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 40 | 23 |
Derivative liabilities | (1) | (1) |
Level I [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,764 | 2,015 |
Securities lending collateral | 0 | 0 |
Total assets | 4,607 | 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] | Foreign Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 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 | 2,843 | 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 | 2,646 | 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 | 197 | 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 | 1,019 | 353 |
Total assets | 24,175 | 20,919 |
Total liabilities | (1) | (1) |
Level II [Member] | Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 22,945 | 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 | 813 | 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 | 81 | 141 |
Level II [Member] | Fixed Maturities [Member] | Foreign Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 292 | |
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 | 5,363 | 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 | 10,258 | 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 | 4,166 | 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 | 75 | 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 | 1,897 | 1,654 |
Level II [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 171 | 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 | 143 | 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 | 28 | 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 | 40 | 23 |
Derivative liabilities | (1) | (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 | 381 | 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 | 320 | 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] | Foreign Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 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 | 313 | 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 | 61 | 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 | 61 | 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 383 | $ 616 | $ 397 | $ 623 |
Total gains (losses) recognized in net income | (4) | (8) | (21) | (12) |
Total gains (losses) recognized in accumulated other comprehensive loss | 14 | 12 | (3) | 14 |
Purchases | 7 | 53 | 61 | 139 |
Sales | (5) | (28) | (31) | (59) |
Settlements | (14) | (18) | (35) | (61) |
Transfers into Level III | 4 | 13 | 7 | |
Transfers out of Level III | (20) | |||
Ending balance | 381 | 631 | 381 | 631 |
Change in unrealized gains (losses) included in net income related to assets still held | (3) | (4) | (20) | (4) |
Corporate Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 314 | 297 | 303 | 287 |
Total gains (losses) recognized in net income | (1) | (3) | (2) | (7) |
Total gains (losses) recognized in accumulated other comprehensive loss | 14 | 12 | (3) | 14 |
Purchases | 5 | 28 | 44 | 91 |
Sales | (5) | (9) | (9) | (11) |
Settlements | (14) | (18) | (33) | (58) |
Transfers into Level III | 4 | 13 | 4 | |
Transfers out of Level III | (9) | |||
Ending balance | 313 | 311 | 313 | 311 |
Change in unrealized gains (losses) included in net income related to assets still held | 0 | 0 | 0 | 0 |
Residential Mortgage-Backed Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 2 | 3 | 2 | 6 |
Total gains (losses) recognized in net income | 0 | 0 | 0 | 0 |
Total gains (losses) recognized in accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | (1) |
Transfers into Level III | 0 | 0 | 0 | |
Transfers out of Level III | (2) | |||
Ending balance | 2 | 3 | 2 | 3 |
Change in unrealized gains (losses) included in net income related to assets still held | 0 | 0 | 0 | 0 |
Other Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 5 | 11 | 7 | 17 |
Total gains (losses) recognized in net income | 0 | 0 | 0 | 0 |
Total gains (losses) recognized in accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 2 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (2) | (2) |
Transfers into Level III | 0 | 0 | 3 | |
Transfers out of Level III | (9) | |||
Ending balance | 5 | 11 | 5 | 11 |
Change in unrealized gains (losses) included in net income related to assets still held | 0 | 0 | 0 | 0 |
Equity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 62 | 305 | 85 | 313 |
Total gains (losses) recognized in net income | (3) | (5) | (19) | (5) |
Total gains (losses) recognized in accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Purchases | 2 | 25 | 17 | 46 |
Sales | 0 | (19) | (22) | (48) |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level III | 0 | 0 | 0 | |
Transfers out of Level III | 0 | |||
Ending balance | 61 | 306 | 61 | 306 |
Change in unrealized gains (losses) included in net income related to assets still held | $ (3) | $ (4) | $ (20) | $ (4) |
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 | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | $ 4,170 | $ 4,258 |
Short-term borrowings | 150 | 700 |
Commercial paper | 400 | |
Notes | 23,714 | 20,470 |
Convertible debentures | 656 | 904 |
Fair Value, Recurring [Member] | Level III [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 4,170 | 4,258 |
Short-term borrowings | 0 | 0 |
Commercial paper | 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 | 150 | 700 |
Commercial paper | 400 | |
Notes | 23,714 | 20,470 |
Convertible debentures | 656 | 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 |
Commercial paper | 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 | 4,170 | 4,258 |
Short-term borrowings | 150 | 700 |
Commercial paper | 400 | |
Notes | 20,574 | 18,840 |
Convertible debentures | $ 119 | $ 145 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 167 | $ 306 | $ 1,606 | $ 1,014 | |
Effective tax rate | 42.90% | 20.60% | 28.50% | 20.70% | |
Income taxes receivable | $ 230 | $ 230 | $ 335 |
Retirement Benefits (Components
Retirement Benefits (Components Of Net Periodic (Benefit Credit) Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 12 | 15 | 37 | 47 |
Expected return on assets | (35) | (35) | (104) | (104) |
Recognized actuarial loss | 6 | 5 | 18 | 13 |
Settlement loss | 6 | 4 | 21 | 8 |
Amortization of prior service cost (credit) | 0 | 0 | 0 | 0 |
Net periodic benefit credit | (11) | (11) | (28) | (36) |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 1 | 0 | 1 |
Interest cost | 3 | 3 | 8 | 11 |
Expected return on assets | (6) | (6) | (18) | (17) |
Recognized actuarial loss | 0 | 1 | 0 | 2 |
Settlement loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (2) | (3) | (6) | (9) |
Net periodic benefit credit | $ (5) | $ (4) | $ (16) | $ (12) |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 3 | $ 0 |
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 | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Medical Claims Payable [Line Items] | ||||||||
Gross medical claims payable, beginning of period | $ 8,647 | $ 7,266 | $ 8,647 | $ 7,266 | ||||
Ceded medical claims payable, beginning of period | (33) | (34) | (33) | (34) | ||||
Net medical claims payable, beginning of period | 8,614 | 7,232 | 8,614 | 7,232 | ||||
Business combinations and purchase adjustments | $ 339 | 339 | ||||||
Current period net incurred medical claims | 61,977 | 58,157 | ||||||
Prior periods redundancies | (700) | (437) | ||||||
Total net incurred medical claims | 21,999 | $ 18,748 | 20,530 | $ 19,897 | $ 19,484 | 18,339 | 61,277 | 57,720 |
Net payments attributable to current period medical claims | 52,879 | 49,751 | ||||||
Net payments attributable to prior periods medical claims | 7,489 | 6,466 | ||||||
Total net payments | 60,368 | 56,217 | ||||||
Short duration contract liability for unpaid claims and adjustment expense, Net | 9,862 | 8,735 | 9,862 | 8,735 | ||||
Ceded medical claims payable, end of period | 129 | 35 | 129 | 35 | ||||
Gross medical claims payable, end of period | 9,991 | 8,770 | 9,991 | 8,770 | ||||
Commercial Specialty Business Segment [Member] | ||||||||
Medical Claims Payable [Line Items] | ||||||||
Gross medical claims payable, beginning of period | 3,039 | 2,586 | 3,039 | 2,586 | ||||
Ceded medical claims payable, beginning of period | (14) | (10) | (14) | (10) | ||||
Net medical claims payable, beginning of period | 3,025 | 2,576 | 3,025 | 2,576 | ||||
Business combinations and purchase adjustments | 0 | 0 | ||||||
Current period net incurred medical claims | 17,964 | 18,986 | ||||||
Prior periods redundancies | (379) | (162) | ||||||
Total net incurred medical claims | 6,641 | 5,147 | 5,797 | 6,546 | 6,422 | 5,856 | 17,585 | 18,824 |
Net payments attributable to current period medical claims | 15,319 | 16,277 | ||||||
Net payments attributable to prior periods medical claims | 2,426 | 2,213 | ||||||
Total net payments | 17,745 | 18,490 | ||||||
Short duration contract liability for unpaid claims and adjustment expense, Net | 2,865 | 2,910 | 2,865 | 2,910 | ||||
Ceded medical claims payable, end of period | 102 | 8 | 102 | 8 | ||||
Gross medical claims payable, end of period | 2,967 | 2,918 | 2,967 | 2,918 | ||||
Government Business Segment [Member] | ||||||||
Medical Claims Payable [Line Items] | ||||||||
Gross medical claims payable, beginning of period | 5,608 | 4,680 | 5,608 | 4,680 | ||||
Ceded medical claims payable, beginning of period | (19) | (24) | (19) | (24) | ||||
Net medical claims payable, beginning of period | 5,589 | 4,656 | 5,589 | 4,656 | ||||
Business combinations and purchase adjustments | 141 | 141 | ||||||
Current period net incurred medical claims | 43,135 | 39,171 | ||||||
Prior periods redundancies | (321) | (275) | ||||||
Total net incurred medical claims | 14,978 | 13,233 | 14,603 | 13,351 | $ 13,062 | 12,483 | 42,814 | 38,896 |
Net payments attributable to current period medical claims | 36,680 | 33,474 | ||||||
Net payments attributable to prior periods medical claims | 5,063 | 4,253 | ||||||
Total net payments | 41,743 | 37,727 | ||||||
Short duration contract liability for unpaid claims and adjustment expense, Net | 6,801 | 5,825 | 6,801 | 5,825 | ||||
Ceded medical claims payable, end of period | 27 | 27 | 27 | 27 | ||||
Gross medical claims payable, end of period | 6,828 | 5,852 | 6,828 | 5,852 | ||||
Other Segment [Member] | ||||||||
Medical Claims Payable [Line Items] | ||||||||
Gross medical claims payable, beginning of period | 0 | 0 | 0 | 0 | ||||
Ceded medical claims payable, beginning of period | 0 | 0 | 0 | 0 | ||||
Net medical claims payable, beginning of period | 0 | $ 0 | 0 | 0 | ||||
Business combinations and purchase adjustments | 198 | 198 | ||||||
Current period net incurred medical claims | 878 | 0 | ||||||
Prior periods redundancies | 0 | 0 | ||||||
Total net incurred medical claims | 380 | $ 368 | $ 130 | 878 | 0 | |||
Net payments attributable to current period medical claims | 880 | 0 | ||||||
Net payments attributable to prior periods medical claims | 0 | 0 | ||||||
Total net payments | 880 | 0 | ||||||
Short duration contract liability for unpaid claims and adjustment expense, Net | 196 | 0 | 196 | 0 | ||||
Ceded medical claims payable, end of period | 0 | 0 | 0 | 0 | ||||
Gross medical claims payable, end of period | $ 196 | $ 0 | $ 196 | $ 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 | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of net incurred medical claims to benefit expense [Line Items] | ||||||||
Total net incurred medical claims | $ 21,999 | $ 18,748 | $ 20,530 | $ 19,897 | $ 19,484 | $ 18,339 | $ 61,277 | $ 57,720 |
Quality improvement and other claims expense | 922 | 799 | 959 | 856 | 884 | 943 | 2,680 | 2,683 |
Benefit expense | 22,921 | 19,547 | 21,489 | 20,753 | 20,368 | 19,282 | 63,957 | 60,403 |
Commercial Specialty Business Segment [Member] | ||||||||
Reconciliation of net incurred medical claims to benefit expense [Line Items] | ||||||||
Total net incurred medical claims | 6,641 | 5,147 | 5,797 | 6,546 | 6,422 | 5,856 | 17,585 | 18,824 |
Government Business Segment [Member] | ||||||||
Reconciliation of net incurred medical claims to benefit expense [Line Items] | ||||||||
Total net incurred medical claims | 14,978 | 13,233 | 14,603 | $ 13,351 | $ 13,062 | $ 12,483 | 42,814 | 38,896 |
Other Segment [Member] | ||||||||
Reconciliation of net incurred medical claims to benefit expense [Line Items] | ||||||||
Total net incurred medical claims | $ 380 | $ 368 | $ 130 | $ 878 | $ 0 |
Medical Claims Payable Medical
Medical Claims Payable Medical Claims Payable (Reconciliation of the Claims Development to the Claims Liability) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net medical claims payable, end of period | $ 9,862 | $ 8,614 | $ 7,232 | |
Ceded medical claims payable end of period | 129 | 33 | $ 35 | 34 |
Insurance lines other than short duration | 261 | |||
Gross medical claims payable, end of period | 10,252 | 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 | 2,865 | 3,025 | 2,576 | |
Ceded medical claims payable end of period | 102 | 14 | 8 | 10 |
Insurance lines other than short duration | 0 | |||
Gross medical claims payable, end of period | 2,967 | |||
Government Business Segment [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net medical claims payable, end of period | 6,801 | 5,589 | 4,656 | |
Ceded medical claims payable end of period | 27 | 19 | 27 | 24 |
Insurance lines other than short duration | 261 | |||
Gross medical claims payable, end of period | 7,089 | |||
Other Segment [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net medical claims payable, end of period | 196 | 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 | $ 196 |
Medical Claims Payable (Narrati
Medical Claims Payable (Narrative) (Details) $ in Millions | Sep. 30, 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 | $ 30 |
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 | 42 |
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 | 189 |
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 | 163 |
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 | 2,646 |
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 | 6,596 |
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 | $ 196 |
Debt (Convertible Debenture Det
Debt (Convertible Debenture Details) (Details) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Net debt carrying amount | $ 656 | $ 904 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal amount | 175 | |
Unamortized debt discount | 54 | |
Net debt carrying amount | 119 | |
Equity component carrying amount | $ 63 | |
Conversion rate (shares of common stock per $1,000 of principal) | 14.0519 | |
Effective conversion price (per $1,000 of principal amount) per share | $ / shares | $ 71.1648 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Aug. 17, 2020 | May 05, 2020 | Dec. 31, 2019 | Sep. 09, 2019 | |
Debt Instrument [Line Items] | ||||||||
Repayments of Long-term Debt | $ 964 | $ 923 | ||||||
Loss (gain) on extinguishment of debt | $ 30 | $ 0 | 34 | $ (1) | ||||
Short-term borrowings | 150 | 150 | $ 700 | |||||
Commercial paper | 400 | |||||||
Other senior unsecured notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Repurchased Face Amount | 79 | 79 | ||||||
Loss (gain) on extinguishment of debt | 30 | 30 | ||||||
Extinguishment of Debt, Amount | 109 | $ 109 | ||||||
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 September 30, 2020, our debt-to-capital ratio, as defined and calculated under the credit facilities, was 38.1%. We do not believe the restrictions contained in any of our credit facility covenants materially affect our financial or operating flexibility. As of September 30, 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 | 0 | $ 40 | ||||||
Repayments of Long-term Debt | 0 | 155 | ||||||
Loss (gain) on extinguishment of debt | 0 | 4 | ||||||
Lines of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 400 | 400 | ||||||
Short-term borrowings | 0 | 0 | 50 | |||||
Federal Home Loan Bank Advances [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Federal Home Loan Bank, advances, short-term | $ 150 | $ 150 | $ 650 | |||||
Debt instrument interest rate | 0.20% | 0.20% | 1.664% | |||||
Surplus Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | $ 25 | $ 25 | $ 25 | |||||
Senior Unsecured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt | 20,549 | 20,549 | 18,815 | |||||
Senior Unsecured Notes [Member] | Four Point Three Five Zero Percent Due Two Thousand Twenty [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, repurchased face amount | $ 700 | |||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.35% | |||||||
Senior Unsecured Notes [Member] | Two Point Three Seven Five Due Two Thousand Twenty Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 400 | $ 850 | ||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.375% | 2.375% | ||||||
Senior Unsecured Notes [Member] | Two Point Two Five Zero Due Two Thousand Thirty [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 1,100 | |||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.25% | |||||||
Senior Unsecured Notes [Member] | Three Point One Two Five Due Two Thousand Fifty [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 1,000 | |||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.125% | |||||||
Commercial Paper Program | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper authorized | 3,500 | 3,500 | ||||||
Commercial paper | 0 | 0 | $ 400 | |||||
364-Day Facility [Member] | Senior Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 1,000 | 1,000 | ||||||
5-Year Facility [Member] | Senior Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 2,500 | $ 2,500 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | 9 Months Ended |
Sep. 30, 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 | 1,377 |
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 | $ 300 |
BCBS Antitrust Litigation [Member] | |
Commitments And Contingencies [Line Items] | |
Number of states action filed | states | 28 |
Estimated litigation liability | $ 594 |
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 |
Cyber Attack [Member] | |
Commitments And Contingencies [Line Items] | |
Estimated litigation liability | $ 39 |
Capital Stock (Summary of Cash
Capital Stock (Summary of Cash Dividend Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Capital [Abstract] | ||||||||
Declaration date | Jul. 28, 2020 | Apr. 28, 2020 | Jan. 28, 2020 | Jul. 23, 2019 | Apr. 23, 2019 | Jan. 29, 2019 | ||
Record date | Sep. 10, 2020 | Jun. 10, 2020 | Mar. 16, 2020 | Sep. 10, 2019 | Jun. 10, 2019 | Mar. 18, 2019 | ||
Payment date | Sep. 25, 2020 | Jun. 25, 2020 | Mar. 27, 2020 | Sep. 25, 2019 | Jun. 25, 2019 | Mar. 29, 2019 | ||
Cash dividends per share | $ 0.95 | $ 0.95 | $ 0.95 | $ 0.80 | $ 0.80 | $ 0.80 | ||
Total payment | $ 238 | $ 242 | $ 240 | $ 204 | $ 206 | $ 206 | $ 720 | $ 616 |
Capital Stock (Summary of Share
Capital Stock (Summary of Share Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Shares repurchased | 5 | 5.2 | ||||||
Average price per share | $ 269.15 | $ 270.42 | ||||||
Aggregate cost | $ 758 | $ 55 | $ 529 | $ 644 | $ 458 | $ 294 | $ 1,342 | $ 1,396 |
Authorization remaining at the end of the period | $ 2,450 | $ 4,098 | $ 2,450 | $ 4,098 |
Capital Stock (Summary of Stock
Capital Stock (Summary of Stock Option Activity) (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 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 | (0.6) |
Forfeited or expired, Number of Shares | shares | (0.1) |
Outstanding at end of period, Number of Shares | shares | 3.4 |
Exercisable at end of period, Number of Shares | shares | 1.9 |
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 | 271.32 |
Exercised, Weighted-Average Option Price per Share | $ / shares | 123.36 |
Forfeited or expired, Weighted-Average Option Price per Share | $ / shares | 271.54 |
Outstanding at end of period, Weighted-Average Option Price per Share | $ / shares | 223.68 |
Exercisable at end of period, Weighted-Average Option Price per Share | $ / shares | $ 181.32 |
Outstanding at end of period, Weighted-Average Remaining Contractual Life | 6 years 10 months 2 days |
Exercisable at end of period, Weighted-Average Remaining Contractual Life | 5 years 4 months 28 days |
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 180 |
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 176 |
Capital Stock (Nonvested Restri
Capital Stock (Nonvested Restricted Stock Activity Including Restricted Stock Units) (Details) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 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 | 0 | 0 | 1.3 | 0.5 |
Vested, Restricted Stock Shares And Units | (1.2) | |||
Forfeited, Restricted Stock Shares And Units | (0.1) | |||
Nonvested at Ending Balance, Restricted Stock Shares and Units | 1.4 | 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 | 272.11 | $ 306.13 | ||
Vested, Weighted-Average Grant Date Fair Value per Share | 194.30 | |||
Forfeited, Weighted-Average Grant Date Fair Value per Share | 271.24 | |||
Nonvested at Ending Balance, Weighted-Average Grant Date Fair Value per Share | $ 272.04 | $ 272.04 |
Capital Stock (Fair Values of O
Capital Stock (Fair Values of Options Granted During The Period Estimated Using Weighted-Average Assumptions) (Details) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 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 | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Capital [Abstract] | ||
Options granted during the period | $ 54.02 | $ 68.69 |
Restricted stock awards granted during the period | $ 272.11 | $ 306.13 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Dec. 22, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Oct. 27, 2020 | Dec. 07, 2017 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||||||
Dividends Payable, Date to be Paid | Sep. 25, 2020 | Jun. 25, 2020 | Mar. 27, 2020 | Sep. 25, 2019 | Jun. 25, 2019 | Mar. 29, 2019 | ||||
Dividends Payable, Date of Record | Sep. 10, 2020 | Jun. 10, 2020 | Mar. 16, 2020 | Sep. 10, 2019 | Jun. 10, 2019 | 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 | Dec. 22, 2020 | |||||||||
Dividends Payable, Date of Record | Dec. 7, 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 | 0.3 | |||||||||
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Investments, Accumulated Gross Unrealized Gain, before Tax | $ 1,136 | $ 770 | |
Investments, Accumulated Gross Unrealized Loss, before Tax | (245) | (54) | |
Investments, net pretax unrealized gains (losses) excluding non-credit component of other-than-temporary impairments | 891 | 716 | |
Deferred tax (liability) asset | (216) | (164) | |
Net unrealized gains (losses) on investments excluding non-credit component of other-than-temporary impairments | 675 | 552 | |
Accumulated other comprehensive income (loss), non-credit component of impairments on investments | (11) | (5) | |
Non-Credit Component of Impairments on Investments In Accumulated Other Comprehensive Income Deferred Tax Liability Asset | 3 | 1 | |
Accumulated Other Comprehensive Income Loss Non-Credit Component of Impairment Loss on Investments Net Of Tax | (8) | (4) | |
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | (319) | (340) | |
Cash flow hedges, deferred tax asset | 67 | 63 | |
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | (252) | (277) | |
Defined benefit pension plans, deferred net actuarial loss | (695) | (730) | |
Defined benefit pension plans, deferred prior service credits | (1) | (1) | |
Defined benefit pension plans, deferred tax asset | 178 | 188 | |
Net unrecognized periodic benefit costs for defined benefit pension plans | (518) | (543) | |
Postretirement benefit plans, deferred net actuarial loss | (25) | (57) | |
Postretirement beneft plans, prior service costs | 14 | 25 | |
Postretirement benefit plans, deferred tax asset | 3 | 8 | |
Net unrecognized periodic benefit costs for postretirement benefit plans | (8) | (24) | |
Foreign currency translation adjustments, gross unrealized losses | (1) | (4) | |
Foreign currency translation adjustments, deferred tax asset | 0 | 1 | |
Net unrealized losses on foreign currency translation adjustments | (1) | (3) | |
Accumulated other comprehensive loss | $ (112) | $ (299) | $ (296) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Other Comprehensive Income (Loss) Reclassification Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 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 | $ 152 | $ 119 | $ 182 | $ 705 |
Reclassification adjustment for net realized loss (gain) on investment securities, net of tax | (39) | (3) | (28) | 6 |
Total reclassification adjustment on investments | 113 | 116 | 154 | 711 |
Change in non-credit component of impairment losses on investments net of tax | 16 | (1) | (6) | (2) |
Cash flow hedges, holding gain (loss), net of tax | 4 | (34) | 10 | (31) |
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax | 8 | 4 | 25 | 10 |
Foreign currency translation adjustment, net of tax | 1 | (1) | 1 | (1) |
Net gain (loss) recognized in other comprehensive income, net of tax | $ 142 | $ 84 | $ 184 | $ 687 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income Reclassification Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) Reclassification Adjustments (Parantheticals) [Abstract] | ||||
Net holding gain (loss) on investment securities arising during the period, tax (expense) benefit | $ (43) | $ (35) | $ (68) | $ (205) |
Reclassification adjustment for net realized loss (gain) on investment securities, tax (benefit) expense | 10 | 1 | 7 | (1) |
Tax (expense) benefit of non credit impairment on available-for-sale securities recognized in other comprehensive income (loss) | (5) | 0 | 2 | 0 |
Cash flow hedges, holding gain (loss), tax (expense) benefit | 0 | (2) | (2) | (2) |
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, tax expense | (2) | (1) | (9) | (3) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (1) | 0 | (1) | 0 |
Net gain (loss) recognized in other comprehensive income, tax (expense) benefit | $ (41) | $ (37) | $ (71) | $ (211) |
Earnings Per Share (Denominator
Earnings Per Share (Denominator For Basic And Diluted Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Denominator for basic earnings per share - weighted-average shares | 251 | 255.2 | 251.9 | 256.3 |
Effect of dilutive securities – employee stock options, nonvested restricted stock awards and convertible debentures | 3.2 | 4.8 | 3.4 | 4.8 |
Denominator for diluted earnings per share | 254.2 | 260 | 255.3 | 261.1 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares excluded from denominator for diluted earnings per share because the stock options were anti-dilutive | 1.6 | 0.7 | 1.4 | 0.6 |
Restricted stock units issued under stock incentive plan | 0 | 0 | 1.3 | 0.5 |
Restricted stock units excluded from the denominator for diluted earnings per share | 0.3 | 0.2 |
Segment Information (Financial
Segment Information (Financial Data By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | $ 30,649 | $ 26,444 | $ 89,275 | $ 76,009 |
Operating gain (loss) | 201 | 1,528 | 5,755 | 4,901 |
Commercial & Specialty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating gain (loss) | (234) | 924 | 2,558 | 3,505 |
Government Business [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating gain (loss) | 246 | 616 | 2,275 | 1,470 |
IngenioRx Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating gain (loss) | 345 | 0 | 998 | 0 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating gain (loss) | (156) | (12) | (76) | (74) |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | (4,158) | (1,303) | (11,335) | (2,353) |
Unaffiliated | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | 30,649 | 26,444 | 89,275 | 76,009 |
Unaffiliated | Commercial & Specialty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | 9,326 | 9,284 | 27,476 | 28,093 |
Unaffiliated | Government Business [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | 18,101 | 15,955 | 52,809 | 46,419 |
Unaffiliated | IngenioRx Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | 2,598 | 774 | 7,485 | 880 |
Unaffiliated | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | 624 | 431 | 1,505 | 617 |
Affiliated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | 0 | 0 | 0 | 0 |
Affiliated [Member] | Commercial & Specialty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | 0 | 0 | 0 | |
Affiliated [Member] | Government Business [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | 0 | 0 | 0 | |
Affiliated [Member] | IngenioRx Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | 2,984 | 1,148 | 8,563 | 1,290 |
Affiliated [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segments operating revenues | $ 1,174 | $ 155 | $ 2,772 | $ 1,063 |
Segment Information Segment Inf
Segment Information Segment Information (Major Product Revenues for Each Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | $ 30,649 | $ 26,444 | $ 89,275 | $ 76,009 |
Commercial Specialty Business Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 9,326 | 9,284 | 27,476 | 28,093 |
Government Business Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 18,101 | 15,955 | 52,809 | 46,419 |
IngenioRx Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 5,582 | 1,922 | 16,048 | 2,170 |
Other Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 1,798 | 586 | 4,277 | 1,680 |
Segment Eliminations [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | (4,158) | (1,303) | (11,335) | (2,353) |
Managed Care Products [Member] | Commercial Specialty Business Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 7,523 | 7,542 | 22,209 | 22,806 |
Managed Care Products [Member] | Government Business Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 17,999 | 15,847 | 52,523 | 46,111 |
Managed Care Services [Member] | Commercial Specialty Business Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 1,391 | 1,330 | 4,036 | 4,049 |
Managed Care Services [Member] | Government Business Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 102 | 108 | 286 | 308 |
Dental Vision Products And Services [Member] | Commercial Specialty Business Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 318 | 325 | 917 | 975 |
Other Products [Member] | Commercial Specialty Business Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | 94 | 87 | 314 | 263 |
Pharmacy products and services [Member] | IngenioRx Segment [Member] | ||||
Major Product Revenue By Segment [Line Items] | ||||
Insurance Services Revenue | $ 5,582 | $ 1,922 | $ 16,048 | $ 2,170 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting [Abstract] | ||||
Reportable segments operating revenues | $ 30,649 | $ 26,444 | $ 89,275 | $ 76,009 |
Net investment income | 280 | 242 | 591 | 737 |
Net realized gains (losses) on financial instruments | 247 | 1 | 241 | 90 |
Impairment recoveries (losses) recognized in income | (18) | (13) | (64) | (30) |
Total revenues | $ 31,158 | $ 26,674 | $ 90,043 | $ 76,806 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting [Abstract] | ||||
Reportable segments operating gain | $ 201 | $ 1,528 | $ 5,755 | $ 4,901 |
Net investment income | 280 | 242 | 591 | 737 |
Net realized gains (losses) on financial instruments | 247 | 1 | 241 | 90 |
Impairment recoveries (losses) recognized in income | (18) | (13) | (64) | (30) |
Interest expense | (198) | (185) | (593) | (556) |
Amortization of other intangible assets | (93) | (84) | (269) | (256) |
(Loss) gain on extinguishment of debt | (30) | 0 | (34) | 1 |
Income before income tax expense | $ 389 | $ 1,489 | $ 5,627 | $ 4,887 |
Segment Information Segment I_2
Segment Information Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Operating Lease, Cost | $ 272 | $ 48 | $ 378 | $ 138 | |
Short-term Lease, Cost | 11 | 9 | 38 | 33 | |
Sublease Income | (1) | (4) | (8) | (12) | |
Lease, Cost | 282 | 53 | 408 | 159 | |
Operating Lease, Payments | 47 | 43 | 137 | 132 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 17 | $ 33 | 372 | $ 33 | |
Other Noncurrent Assets [Member] | |||||
Operating Lease, Right-of-Use Asset | 679 | 679 | $ 575 | ||
Other Current Liabilities [Member] | |||||
Operating Lease, Liability, Current | 192 | 192 | 158 | ||
Other Noncurrent Liabilities [Member] | |||||
Operating Lease, Liability, Noncurrent | $ 798 | $ 798 | $ 482 |
Leases (Reconciliation of Futur
Leases (Reconciliation of Future Lease Payments to Total Lease Liabilities) (Details) $ in Millions | Sep. 30, 2020USD ($) |
Leases (Reconciliation of Future Lease Payments to Total Lease Liabilities) [Abstract] | |
Operating lease payments, 2020; excluding nine months ended September 30, 2020 | $ 50 |
Operating lease payments, 2021 | 195 |
Operating lease payments, 2022 | 179 |
Operating lease payments, 2023 | 157 |
Operating lease payments, 2024 | 125 |
Operating lease payments, Thereafter | 322 |
Total future minimum payments | 1,028 |
Imputed Interest, Leases | (38) |
Operating Lease Liabilities | $ 990 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years | 6 years |
Weighted Average Discount Rate, Percent | 3.26% | 3.26% | 4.09% |
Operating lease, impairment loss | $ 224 | $ 224 | |
Lessee, Operating Lease, Not yet Commenced, Description [Abstract] | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 12 years | 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 | $ 142 | $ 142 | |
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 1 year | 1 year | |
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 12 years | 12 years |