Statistical Methods and Software Package for Medical Trend Analysis in Health Rate Review ProcessYin L1,2, Wu Q1 and Hong D1*
- *Corresponding Author:
- Hong D
Program of Actuarial Science
Middle Tennessee State University
Murfreesboro, TN, USA
E-mail: [email protected]
Received date: December 21st 2015; Accepted date: March 5th 2016; Published date: March 15th 2016
Citation: Yin L, Wu Q, Hong D (2016) Statistical Methods and Software Package for Medical Trend Analysis in Health Rate Review Process. J Health Med Inform 7:219. doi: 10.4172/2157-7420.1000219
Copyright: © 2016 Yin L, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Medical trend is the most important component used to indicate and file health insurance rates. Insurance companies apply trend analysis to forecast future costs and premiums. Governments use medical trend in the rate review process. In this paper we discuss four statistical methods: average ratio, linear regression, exponential regression and time series analysis, as well as their use in determining trend factors. An efficient method to detecting the outliers based on leave one out analysis is presented. A software package is developed within Microsoft Excel to calculate medical trend based on annual data or monthly data, which provides a useful tool for the insurance rate review.