Markov model with machine learning integration for fraud detection in health insurance
share
Fraud has led to a huge addition of expenses in health insurance sector in India. The work is aimed to provide methods applied to health insurance fraud detection. The work presents two approaches - a markov model and an improved markov model using gradient boosting method in health insurance claims. The dataset 382,587 claims of which 38,082 claims are fraudulent. The markov based model gave the accuracy of 94.07 improved markov model performed much better in comparison with the accuracy of 97.10 gave much lower false positives compared to markov model.
READ FULL TEXT