Mastercard AI Modeling Capability Enhances Milliman Payment Integrity Solution

Rhea-AI Summary

Mastercard has successfully conducted a proof of concept using its AI technology in collaboration with Milliman to detect healthcare fraud, waste, and abuse (FWA). This initiative identified potential savings of over $239 million from fraudulent claims across 2,700 providers. The partnership aims to enhance existing solutions in the healthcare sector, addressing significant annual losses due to FWA, estimated by some agencies at more than $300 billion in the U.S.

Positive

• Successful proof of concept identifying over $239 million in potential savings from FWA.
• Partnership with Milliman enhances fraud detection capabilities.
• High effectiveness noted, with over 80% of flagged claims raising FWA concerns.

Negative

• None.

Proof of concept finds $239 million in suspected healthcare fraud, waste, and abuse

PURCHASE, N.Y.--(BUSINESS WIRE)-- Mastercard® today announced it recently completed a successful proof of concept coupling Mastercard’s artificial intelligence modeling technology with the Milliman Payment Integrity solution (MPI) to enhance detection of suspected healthcare fraud, waste, and abuse (FWA). Recognizing the value of this combined solution for their clients, Mastercard and Milliman have entered into a formal reseller agreement.

The National Health Care Anti-Fraud Association (NHCAA) estimates that the financial losses due to healthcare fraud are in the tens of billions of dollars each year – with some government and law enforcement agencies placing the loss as high as 10% of U.S. annual health outlays, or more than $300 billion a year.

Milliman Payment Integrity is a multifactor, rules-based solution that audits health insurance claims to identify potentially inappropriate billing or providers engaging in FWA. Working with Milliman, Mastercard’s team of data scientists used its six-step AI model development process, AI Express, to develop three AI models that would leverage outputs from the Milliman Payment Integrity solution: a model to score provider-level risks, a model to evaluate claim-level risks and a combined model to evaluate the intersection of claims and providers.

The results were significant. Upwards of 80% of the claims identified by MPI from providers flagged by the AI model raised FWA concerns. When applied to a single mid-sized health insurance payer, the proof of concept identified more than $239 million in potential savings from 2,700 providers flagged for potential fraudulent claims.

“Mastercard’s solutions designed to make payment systems operate more efficiently also provide the same benefits to the healthcare industry,” said Raja Rajamannar, Chief Marketing and Communications Officer and President of Healthcare at Mastercard. “Milliman’s objectives were to enhance its existing rules-based payment integrity solution with non-discreet testing capabilities. Leveraging our proprietary technology to build a custom AI model helped them to do just that – provide enhanced fraud detection and operational efficiencies to improve their customers’ experience.”

“The Milliman Payment Integrity team is excited about the enhanced fraud, waste, and abuse detection capabilities we can now offer our clients through the Mastercard FWA AI model,” said David Cusick, a Milliman principal. “Our proof-of-concept with Mastercard shows there is a very compelling value proposition when coupling our existing technology solution with Mastercard’s advanced AI and machine learning capabilities.”

Milliman clients who license MPI can now access the Mastercard AI Model for these enhanced FWA detection capabilities. To learn more about Mastercard and Milliman’s proof-of-concept, read the complete case study.

About Mastercard

Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart, and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments, and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all. www.mastercard.com

About Milliman

Founded in 1947, we are an independent risk management, benefits, and technology firm with offices in major cities around the globe. We serve the full spectrum of business, financial, government, union, education, and nonprofit organizations. Since our inception, objectivity and professional excellence have been our hallmarks. We are independently owned and managed by our principals, who are distinguished by their technical and business acumen, and by their achievements in their respective fields. Our body of professionals includes actuaries, technologists, clinicians, economists, climate and data scientists, benefits and compensation experts, and many others. Over the past seven decades, as the nature of risk has evolved, so has the scope of our work. Today, we are helping clients address some of the world’s most profound social and business challenges, including a looming retirement crisis, an evolving healthcare landscape, the effects of climate change and a global pandemic, and an insurance industry burdened by low interest rates and daunting reporting requirements. We are empowered by the diversity of our backgrounds, driven by a shared commitment to innovate, and inspired by a common mission: to serve our clients to protect the health and financial well-being of people everywhere. www.milliman.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220216006199/en/

Media Contacts

Jill Davison, Mastercard

+1 914 673 7542 | Jill.Davison@Mastercard.com

Todd Fessler, Milliman

+206 504 5516 | Todd.Fessler@Milliman.com

Source: Mastercard Incorporated

FAQ

What was Mastercard's recent achievement in healthcare fraud detection?

Mastercard completed a proof of concept that identified over $239 million in potential savings from healthcare fraud.

How much financial loss is attributed to healthcare fraud annually in the U.S.?

Estimates suggest healthcare fraud costs the U.S. over $300 billion each year.

What technology did Mastercard use in its proof of concept?

Mastercard used its artificial intelligence modeling technology alongside Milliman's Payment Integrity solution.

What is the significance of the partnership between Mastercard and Milliman?

The partnership aims to enhance fraud detection capabilities in healthcare, combining AI technology with existing solutions.