What is the methodology behind the Predictive Model?
The Reed Group Predictive Model employs a method of linear regression by least squares. This regression model is applied to all ICD-9-CM codes in our proprietary data with a minimum of 25 observed cases. Specific case information is entered and submitted by the end user. The effects for each variable are computed and displayed to the right of the values originally submitted. The number next to the ICD-9-CM code is the mean based on actual case data. Entered variables for age, job class, gender, year incurred, program type, area of the country, co-existing diagnoses, and whether the case is foreign or within the USA may adjust this number. The sums of the numbers are displayed as “Predicted Days of Disability.” “Observed Data” is based solely upon proprietary Reed Group data collected from multiple employer types and includes STD, LTD, and WC claims data.
The Reed Group Predictive Model employs a method of linear regression by least squares. This regression model is applied to all ICD-9-CM codes in our proprietary data with a minimum of 25 observed cases. Specific case information is entered and submitted by the end user. The effects for each variable are computed and displayed to the right of the values originally submitted. The number next to the ICD-9-CM code is the mean based on actual case data. Entered variables for age, job class, gender, program type, area of the country, co-existing diagnoses, and whether the case is foreign or within the USA may adjust this number. The sums of the numbers are displayed as “Predicted Days of Disability.” “Observed Data” is based solely upon proprietary Reed Group data collected from multiple employer types and includes STD, LTD, and WC claims data.
Related Questions
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