•Medicare Accountable Care Organizations: We believe there is a significant opportunity to address the high cost and lack of coordination of health care for the majority of the Medicare fee-for-service population and have joined with provider groups to operate Accountable Care Organizations, or ACOs, that participate in the Medicare Shared Saving Program, known as the MSSP. We currently operate sixteen MSSP ACOs and two Next Generation ACOs, including approximately 5,200 participating providers with approximately 221,800 assigned Medicare fee-for-service beneficiaries.
Medicare Advantage-Texas: Universal American's largest Medicare Advantage market is Texas, primarily the Houston/Beaumont region and North Texas. We market our products using the TexanPlus® brand. The products provided in our Texas markets are HMO plans, including a special needs plan for dual eligibles (dSNP), which was introduced in 2016 and currently has nominal membership. Enrollment in this market is generally supported by employed career agents.
On June 4, 2015, CMS released a final rule updating provisions related to the MSSP in the second contract period for years 2016-2019. This final rule made several changes, including allowing ACOs to participate in Track 1 for a second agreement period with the same sharing rate (up to 50%), establishing a new Track 3 with two-sided risk with additional flexibilities, providing new beneficiary-level claims data that will improve overall ACO information, and easing certain administrative requirements.
Discontinued Operations includes the results of our Medicaid, Traditional Insurance and APS Healthcare businesses. For additional information on the sale of these businesses, see Note 21-Discontinued Operations.
APS Healthcare: During 2015, we recorded losses on the sale of our APS Puerto Rico business of $0.4 million and on the sale of our APS domestic business of $17.0 million, as well as a restructure charge of $5.6 million related to the sale of the domestic business and operating results prior to sale. In connection with the sale, we retained certain office space which we have exited and certain managed behavioral health, or MBH, contracts which we have terminated and are operating at a loss as the business runs off. Our restructure charge for facilities represents the estimated costs to close the facilities, including lease buyout costs and rent costs, net of estimated sublease revenue, on non-cancellable leases prior to termination. The related leases run through 2021. The charge related to the MBH contracts represents the estimated operating losses on the terminated contracts through the end of the contractual period, March 31, 2016. 2014 results included $15.9 million of litigation and settlement costs related to APS Healthcare matters, partially offset by an operating profit of $10.3 million.
The claim reserve balances at December 31, 2015 settled during 2016 for $0.7 million less than originally estimated. This prior year development represents less than 0.1% of the incurred claims recorded in 2015.
Our consolidated balance sheets include goodwill held in connection with our Medicare Advantage reporting unit of $68,393 at December 31, 2016 and 2015. There were no changes in carrying amounts during the years then ended.
services develop future cash flow expectations based upon collateral performance, discounted at an estimated market rate. The pricing for mortgage-backed and asset-backed securities reflects estimates of the rate of future prepayments of principal over the remaining life of the securities. The pricing services derive these estimates based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral.
In our consideration of all the available evidence, we provided more weight to evidence that was more objectively verifiable. In 2016, significant weight was given to our cumulative income/loss position. Our cumulative loss position at December 31, 2016 was due in large part to losses in our APS Healthcare businesses that were sold during 2015 and are reported in discontinued operations, the fair value adjustment and ultimate sale of our Traditional Insurance business that is reported in discontinued operations, the cumulative losses on our ACO business which include startup costs and a time lag in the recognition of revenue, the recognition of significant legal/settlement costs related to our non-core businesses and significant non-deductible expenses, particularly the ACA fee. While the Company is in a cumulative net loss position over the last three years from a financial reporting perspective, the Company has cumulative pre-tax income over the same period, after these adjustments are made.