Degree Name

BS

Department

Statistics

College

Physical and Mathematical Sciences

Defense Date

2018-04-23

Publication Date

2018-06-01

First Faculty Advisor

Brian Hartman

First Faculty Reader

Robert Richardson

Honors Coordinator

Del Scott

Abstract

All insurance companies, regardless of the kind of insurance they offer, do their best to predict the future by comparing current to historical information. Any statistically significant correlation, regardless of expectations and hidden factors, can help to actuarially model future behavior. Using deidentified data from over 6 million health insurance policies over one year, we looked for any significant groupings of medical issues. The medical issues are defined based on the commercial “Episode Treatment Groups” (ETGs) classification, and our claims contain 347 different ETGs. We performed different kinds of analysis, including Bayesian posterior cluster analysis, k-means cluster analysis, and association rule learning. We compared our findings to medical expectations.

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