General form of registration statement for all companies including face-amount certificate companies

Claims Payable

v3.21.4
Claims Payable
9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Claims Payable.    
Claims Payable

Note 9: Claims Payable

Claims payable includes claims reported as of the balance sheet date, including estimates for IBNR, due to third parties for health care services provided to members. IBNR was $75,108,251 and $54,472,498 at September 30, 2021 and 2020, respectively. Activity in the liability for claims payable and healthcare expenses for the nine months ended September 30, was as follows:

For the Nine Months Ended September 30, 

    

2021

    

2020

Claims Unpaid, Beginning of Year

$

56,934,400

$

19,859,348

Incurred, Related to:

 

  

 

  

Current Year

 

418,149,443

 

295,275,661

Prior Year(s)

 

(1,921,074)

 

Total Incurred

 

416,228,369

 

295,275,661

 

  

 

  

Paid, Related to:

 

  

 

  

Current Year

 

337,014,904

 

243,942,253

Prior Year(s)

 

61,039,614

 

19,038,200

Total Paid

 

398,054,518

 

262,980,453

 

  

 

  

Claims Unpaid, End of Period

$

75,108,251

$

52,154,556

Total incurred claims of $416,228,369 and $295,275,661 for the nine months ended September 30, 2021 and 2020 respectively are lower than total Medical Expenses by $43,004,716 and $52,982,611 respectively. This difference is primarily composed of Medicare Part D expenses, Sub-Capitation expenses, and other non-claims payable medical expenses on the accompanying Condensed Consolidated Statements of Operations. Estimates for incurred claims are based on historical enrollment and cost trends while also taking into consideration operational changes. Future and actual results typically differ from estimates. Differences could result from an overall change in medical expenses per member, changes in member mix or simply due to the addition of new members.

Note 10: Claims Payable

Claims payable includes claims reported as of the balance sheet date, including estimates for IBNR, due to third parties for health care services provided to members. IBNR was $7,801,556, $19,859,348 and $56,934,400 at December 31, 2018, 2019 and 2020, respectively. Activity in the liability for claims payable and healthcare expenses for the years ended December 31, was as follows:

    

2018

    

2019

    

2020

Claims Unpaid, Beginning of Year.

$

$

7,801,556

$

19,859,348

Incurred, Related to:

Current Year

 

79,982,717

 

119,091,765

 

418,103,177

Prior Year(s)

 

 

 

Total Incurred

 

79,982,717

 

119,091,765

 

418,103,177

Paid, Related to:

 

  

 

  

 

  

Current Year

 

72,181,161

 

99,524,323

 

361,512,059

Prior Year(s)

 

 

7,509,650

 

19,516,066

Total Paid

 

72,181,161

 

107,033,973

 

381,028,125

Claims Unpaid, End of Year

$

7,801,556

$

19,859,348

$

56,934,400

Total incurred claims of $79,982,717, $119,091,765 and $418,103,177 as of December 31, 2018, 2019 and 2020, respectively, are lower than total Medical Expenses by $12,499,060, $22,350,692 and $67,409,966, respectively. This difference is primarily composed of Medicare Part D expenses, Sub-Capitation expenses, and other non-claims payable medical expenses on the accompanying Consolidated Statements of Operations. Estimates for incurred claims are based on historical enrollment and cost trends while also taking into consideration operational changes. Future and actual results typically differ from estimates. Differences could result from an overall change in medical expenses per member, changes in member mix or simply due to the addition of new members.