SEGMENT REPORTING On a regular basis, we evaluate discrete financial information and assess the performance of our three reportable segments Medicaid Health Plans, Medicare Health Plans and Medicare PDPs, to determine the most appropriate use and allocation of Company resources. We allocate premium revenue, medical benefits expense, Medicaid premium taxes, the 2018 ACA industry fee and goodwill to our reportable segments. We do not allocate to our reportable segments any other assets and liabilities, investment and other income, selling, general and administrative expenses ("SG&amp;A"), depreciation and amortization, or interest expense. The Company's decision-makers primarily use premium revenue, medical benefits expense and gross margin to evaluate the performance of our reportable segments. Our Corporate and Other category includes net investment and other income, SG&amp;A expenses, depreciation, amortization and interest. Also included in this category are results for operating segments that are not individually reportable because they do not meet the quantitative thresholds required by generally accepted accounting principles. Medicaid Health Plans Our Medicaid Health Plans segment includes plans for beneficiaries of Temporary Assistance for Needy Families ("TANF"), Supplemental Security Income ("SSI"), Aged Blind and Disabled ("ABD"), Children's Health Insurance Program ("CHIP") and Long-Term Services and Supports ("LTSS") programs, among others. TANF generally provides assistance to low-income families with children. ABD and SSI generally provide assistance to low-income aged, blind or disabled individuals. CHIP provides assistance to qualifying families who are not eligible for Medicaid because their income exceeds the applicable income thresholds. The LTSS program is designed to help people with chronic illnesses or who have disabilities and need health and long-term care services, such as home care or adult day care, to enable them to stay in their homes and communities as long as possible. Our Medicaid operations in Florida, Illinois and Kentucky individually account for 10% or more of our consolidated premium revenue for the three and nine months ended September 30, 2019 . These states and the respective Medicaid premium revenue as a percentage of total consolidated premium revenue are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Florida 20% 13% 19% 13% Illinois 13% * 13% * Kentucky 10% 13% 10% 14% *Our Illinois Medicaid health plan accounted for less than 10% of our consolidated premium revenue for the three and nine months ended September 30, 2018. On February 1, 2019, we began providing statewide-managed care services to children with medically complex conditions through the Children's Medical Services Managed Care Plan ("CMS Plan") contract from the Florida Department of Health. On December 1, 2018, we began providing managed care services to Medicaid-eligible beneficiaries, including Managed Medical Assistance and Long-Term Care beneficiaries in 10 of 11 regions in Florida through a new five-year contract. As part of the Medicaid Managed Care program, we are one of two managed care plans providing statewide-managed care services to beneficiaries in the Serious Mental Illness Specialty Plan. Medicare Health Plans Medicare is a federal program that provides eligible persons age 65 and over and some disabled persons with a variety of hospital, medical and prescription drug benefits. MA is Medicare's managed care alternative to the original Medicare program, which provides individuals standard Medicare benefits directly through CMS. Our MA CCPs generally require members to seek health care services and select a primary care physician from a network of health care providers. In addition, we offer coverage of prescription drug benefits under the Medicare Part D program as a component of most of our MA plans. Medicare PDPs We offer stand-alone Medicare Part D coverage to Medicare-eligible beneficiaries in our Medicare PDPs segment. The Medicare Part D prescription drug benefit is supported by risk sharing with the federal government through risk corridors designed to limit the losses and gains of the participating drug plans and by reinsurance for catastrophic drug costs. The government subsidy is based on the national weighted average monthly bid for this coverage, adjusted for risk factor payments. Additional subsidies are provided for dually-eligible beneficiaries and specified low-income beneficiaries. The Part D program offers national in-network prescription drug coverage that is subject to limitations in certain circumstances. Summary of Financial Information Reportable operating segments are defined as components of an enterprise for which discrete financial information is available and evaluated on a regular basis by the enterprise's decision-makers to determine how resources should be allocated to an individual segment and to assess performance of those segments. Accordingly, we have three reportable segments: Medicaid Health Plans, Medicare Health Plans and Medicare PDPs. A summary of financial information for our reportable segments through the gross margin level and reconciliation to income from operations is presented in the table below. Medicaid Health Plan Medicare Health Plan Medicare PDP Corporate &amp; Other Consolidated For the Three Months Ended September 30, 2019 (in millions) Premium $ 4,877.5 $ 1,841.4 $ 241.2 $ 5.5 $ 6,965.6 Products and services    132.1 132.1 Total premium and products and services revenues 4,877.5 1,841.4 241.2 137.6 7,097.7 Medical benefits 4,308.7 1,533.5 182.7 0.8 6,025.7 Costs of products and services    128.9 128.9 ACA industry fee      Medicaid premium taxes 35.6    35.6 Total gross margin expenses 4,344.3 1,533.5 182.7 129.7 6,190.2 Gross margin 533.2 307.9 58.5 7.9 907.5 Investment and other income    42.5 42.5 Other expenses    (656.7 ) (656.7 ) Income from operations $ 533.2 $ 307.9 $ 58.5 $ (606.3 ) $ 293.3 For the Three Months Ended September 30, 2018 Premium $ 3,223.3 $ 1,582.0 $ 182.3 $ 1.2 $ 4,988.8 Products and services    34.6 34.6 Total premium and products and services revenues 3,223.3 1,582.0 182.3 35.8 5,023.4 Medical benefits 2,738.1 1,340.8 115.1 1.0 4,195.0 Costs of products and services    33.5 33.5 ACA industry fee 54.4 27.5 4.6  86.5 Medicaid premium taxes 31.5    31.5 Total gross margin expenses 2,824.0 1,368.3 119.7 34.5 4,346.5 Gross margin 399.3 213.7 62.6 1.3 676.9 Investment and other income    34.7 34.7 Other expenses    (503.0 ) (503.0 ) Income from operations $ 399.3 $ 213.7 $ 62.6 $ (467.0 ) $ 208.6 Medicaid Health Plan Medicare Health Plan Medicare PDP Corporate &amp; Other Consolidated For the Nine Months Ended September 30, 2019 (in millions) Premium $ 14,055.8 $ 5,557.3 $ 789.3 $ 14.8 $ 20,417.2 Products and services    374.6 374.6 Total premium and products and services revenues 14,055.8 5,557.3 789.3 389.4 20,791.8 Medical benefits 12,599.5 4,627.2 651.7 6.1 17,884.5 Costs of products and services    363.9 363.9 ACA industry fee      Medicaid premium taxes 99.0    99.0 Total gross margin expenses 12,698.5 4,627.2 651.7 370.0 18,347.4 Gross margin 1,357.3 930.1 137.6 19.4 2,444.4 Investment and other income    120.7 120.7 Other expenses    (1,845.6 ) (1,845.6 ) Income from operations $ 1,357.3 $ 930.1 $ 137.6 $ (1,705.5 ) $ 719.5 For the Nine Months Ended September 30, 2018 Premium $ 8,899.4 $ 4,684.9 $ 642.2 $ 1.2 $ 14,227.7 Products and services    34.6 34.6 Total premium and products and services revenues 8,899.4 4,684.9 642.2 35.8 14,262.3 Medical benefits 7,601.1 3,929.8 491.1 1.0 12,023.0 Costs of products and services    33.5 33.5 ACA industry fee 151.5 81.8 13.7  247.0 Medicaid premium taxes 94.2    94.2 Total gross margin expenses 7,846.8 4,011.6 504.8 34.5 12,397.7 Gross margin 1,052.6 673.3 137.4 1.3 1,864.6 Investment and other income    81.0 81.0 Other expenses    (1,341.9 ) (1,341.9 ) Income from operations $ 1,052.6 $ 673.3 $ 137.4 $ (1,259.6 ) $ 603.7