Health Net 2015 Annual Report Download - page 187
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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-26
The following table presents the assets and liabilities related to the 3Rs as of December 31, 2015 and December
31, 2014:
December 31, 2015 December 31, 2014
Other receivables: (Dollars in millions)
Reinsurance.......................................................... $ 214.1 $ 234.0
Risk adjustment.................................................... 143.2 81.0
Risk corridor ........................................................ 1.8 —
Other noncurrent assets:
Risk corridor ........................................................ 212.5 90.4
Accounts payable and other liabilities:
Risk adjustment.................................................... 187.2 153.4
Other noncurrent liabilities:
Risk corridor ........................................................ — 3.6
Net Receivable (Payable) Balance:
Risk adjustment.................................................... $(44.0) $ (72.4)
Risk corridor ........................................................ 214.3 86.8
Reinsurance.......................................................... 214.1 234.0
The following table presents the changes in our balances related to the 3Rs during the years ended December 31,
2015 and 2014:
Net
Receivable/
(Payable)
Balance as of
December 31,
2014 and 2013
Change in
Estimates
Related to
Prior Year Current
Estimates
Payments
Made
(Received)
Net Receivable/
(Payable)
Balance as of
December 31,
2015 and 2014
(Dollars in millions)
2015
Risk adjustment............... $ (72.4) $ (6.3) $ (49.6) $ 84.3 $ (44.0)
Risk corridor ................... 86.8 11.3 126.8 (10.6) 214.3
Reinsurance..................... 234.0 (19.3) 214.1 (214.7) 214.1
2014
Risk adjustment............... $ — $ — $ (72.4) $ — $ (72.4)
Risk corridor ................... — — 86.8 — 86.8
Reinsurance..................... — — 234.0 — 234.0
The change in estimates related to the prior year reduced our pretax income by $14.3 million for the year ended
December 31, 2015.