Company: ELV
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001156039-25-000010
Chunk: 203

Company: Elevance Health, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 203
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 claims payable for the years ended December 31, 2024, 2023 and 2022 is as follows:202420232022Gross medical claims payable, beginning of year$15,865 $15,348 $13,282 Ceded medical claims payable, beginning of year(7)(6)(21)Net medical claims payable, beginning of year15,858 15,342 13,261 Business combinations and purchase adjustments143 — 133 Net incurred medical claims:Current year125,370 121,798 113,414 Prior years redundancies(1,731)(1,571)(869)Total net incurred medical claims123,639 120,227 112,545 Net payments attributable to:Current year medical claims110,930 107,146 98,997 Prior years medical claims13,143 12,565 11,600 Total net payments124,073 119,711 110,597 Net medical claims payable, end of year15,567 15,858 15,342 Ceded medical claims payable, end of year13 7 6 Gross medical claims payable, end of year$15,580 $15,865 $15,348 Amounts incurred related to prior years vary from previously estimated liabilities as the claims are ultimately settled. Liabilities at any period-end are continually reviewed and re-estimated as information regarding actual claims payments, or run out, becomes known. This information is compared to the originally established year end liability. Negative amounts reported for incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated. The prior year redundancy of $1,731 shown above for the year ended December 31, 2024, represents an estimate based on paid claim activity from January 1, 2024 to December 31, 2024. Medical claim liabilities are usually described as having a “short tail,” which means that they are generally paid within twelve months of the member receiving service from the provider. Accordingly, the majority of the $1,731 redundancy relates to claims incurred in calendar year 2023.The following table provides a summary of the two key assumptions having the most significant impact on our incurred but not paid liability estimates for the years ended December 31, 2024, 2023 and 2022, which are the completion and trend factors. These vital assumptions can be affected by variables such as utilization levels, unit