Milliman Advanced Risk Adjusters


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Milliman Advanced Risk Adjusters (MARA) is a suite of risk adjustment tools for population analysis that is perfectly suited for budgeting, pricing and underwriting, payment, stratifying risks, and many other predictive modeling applications for the health insurance industry.

Superior performance.

In a simulation of the 2007 SOA study, MARA models outperformed the competition, with higher R-Squared and lower Mean Average Prediction Error (MAPE).

View sample results for 250K truncation level by vendor:

Individual risk projections by service categories.

MARA offers a clearer picture of where spending is likely to occur. Individual risk scores are provided by four service categories (inpatient, outpatient, physician, and pharmacy).

All models of MARA offer flexible lag options, making them more suitable for healthcare budgeting, payment, pricing, and underwriting.

Rich clinical classification system.

The more than 1,400 clinical classifications underlying MARA utilize code sets from the Milliman Medical Underwriting Guidelines, a rigorous tool developed by clinicians and actuaries. MARA delivers more targeted predictions of future expenses, offering better information for case stratification and renewal rating.

Sound science.

MARA was developed by top Milliman actuaries with years of real-world healthcare experience. Longitudinal data assets that are geographically well-represented offer more precise observations of chronic and costly conditions over time, and allow for better statistical risk models.  MARA's distinctive methodology considers disease progression by taking advantage of longitudinal data sets.

Expert advice.

Risk adjusters are optimal only when applied effectively. As a full service actuarial and consulting firm, Milliman brings a comprehensive understanding of the application of risk adjustment and predictive modeling to complex healthcare applications. Whether you require risk adjustment tools, strategic advice, or customized models, knowledgeable consultants and actuaries are always available to help design and deliver successful solutions.

Next Steps

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