United Healthcare 2003 Annual Report Download - page 56

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54 UnitedHealth Group
7 MEDICAL COSTS PAYABLE
The following table shows the components of the change in medical costs payable for the years ended
December 31:
(in millions) 2003 2002 2001
MEDICAL COSTS PAYABLE, BEGINNING OF PERIOD
$3,741 $3,460 $3,266
ACQUISITIONS
165 180 17
REPORTED MEDICAL COSTS
Current Year 20,864 18,262 17,674
Prior Years (150) (70) (30)
Total Reported Medical Costs 20,714 18,192 17,644
CLAIM PAYMENTS
Payments for Current Year (17,411) (15,147) (14,536)
Payments for Prior Years (3,057) (2,944) (2,931)
Total Claim Payments (20,468) (18,091) (17,467)
MEDICAL COSTS PAYABLE, END OF PERIOD $4,152 $3,741 $3,460
8 COMMERCIAL PAPER AND DEBT
Commercial paper and debt consisted of the following as of December 31:
2003 2002
Carrying Fair Carrying Fair
(in millions) Value Value Value Value
Commercial Paper $79 $79 $461 $461
Floating-Rate Notes
due November 2003 –– 100 100
6.6% Senior Unsecured Notes
due December 2003 – – 250 260
Floating-Rate Notes
due November 2004 150 150 150 150
7.5% Senior Unsecured Notes
due November 2005 400 438 400 450
5.2% Senior Unsecured Notes
due January 2007 400 427 400 423
3.3% Senior Unsecured Notes
due January 2008 500 499 ––
4.9% Senior Unsecured Notes
due April 2013 450 454 ––
Total Commercial Paper and Debt 1,979 2,047 1,761 1,844
Less Current Maturities (229) (229) (811) (821)
Long-Term Debt, less current maturities $1,750 $ 1,818 $950 $1,023
As of December 31, 2003, our outstanding commercial paper had interest rates of approximately 1.2%.
The interest rates on our November 2004 floating-rate notes are reset quarterly to the three-month LIBOR
(London Interbank Offered Rate) plus 0.6%. As of December 31, 2003, the applicable rate on
the notes was 1.8%.