How can predictive modeling facilitate the underwriting process?
Traditional underwriters have used data such as age, sex, geographical location, industry and prior medical costs to project future expenses and set premiums. But as the amount of underwriting data available to health plans has exploded, effective underwriting has become increasingly challenging. Predictive modeling tools can be far more accurate than a simple analysis of claims outlays. For example, a $500 claim for a broken arm is not a good indicator of future claims, while $500 for an initial cancer workup could indicate significant claims in the future. How can predictive modeling assist companies by educating employees? Predictive modeling enhances employee education initiatives because it: • Isolates the high-impact individuals for whom it is possible to effect the greatest change • • Pinpoints the diseases and conditions that need to be managed • • Identifies the population in need of education programs or telephonic support • • Determines what risk factors influence the utiliz
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