Company: CI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739940-25-000028
Chunk: 7

Company: Cigna Group
Filing Date: 2025-07-31
Form: 10-Q
Item: Part II, Item 4
Chunk 7
---
a Healthcare

This liability reflects estimates of the ultimate cost of claims that have been incurred but not reported, expected development on reported claims, claims that have been reported but not yet paid (reported claims in process), and other medical care expenses and services payable that are primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities. 

14

The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $4.5 billion as of June 30, 2025 and $4.8 billion as of June 30, 2024. The decrease was driven by the HCSC transaction, partially offset by the change in stop loss reserves.Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment was as follows:Six Months Ended June 30,(In millions)2025 (1)2024 (1)Beginning balance$5,018 $5,092 Less: Reinsurance and other amounts recoverable159 236 Beginning balance, net4,859 4,856 Incurred costs related to:Current year18,163 18,821 Prior years(297)(284)Total incurred17,866 18,537 Paid costs related to:Current year13,019 14,397 Prior years3,889 3,960 Total paid16,908 18,357 Less: Divestiture and other1,323 — Ending balance, net4,494 5,036 Add: Reinsurance and other amounts recoverable142 166 Ending balance$4,636 $5,202 (1) Includes unpaid claims amounts classified as liabilities of businesses held for sale prior to the completion of the HCSC transaction. As of December 31, 2024, June 30, 2024 and December 31, 2023, includes $983 million, $900 million and $823 million classified as liabilities of businesses held for sale, respectively.Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset. See Note 10 to the Consolidated Financial Statements for additional information on reinsurance.Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions were as follows:Six Months Ended