Analysis of Variations in Medical Claims by Socio Economic and Demographic Factors: A Case of AAR Health Care Clients Database

Abstract

The overall focus of this study was to Analyse of variations in medical claims by socio economic and demographic factors, a case study of AAR Health Care Clients Database. The study was guided by two specific objectives one of which were to determine the socio demographic factors associated with Insured and medical claims and to determine the socio-economic factors associated with Insured and Medical claims. Measure of central tendency was used to report on univariate analysis while T-test and ANOVA were used for bivariate analysis in STATA 14 in finding results. A univariate analysis was run to ascertain the average amount of claims as per the first months of 2019. Bivariate analysis was conducted using both T-test and ANOVA for between a numerical variable (Claimed amount) and binary variables and between a numerical variable (Claimed amount) and categorical variables with more than two groups respectively. From the results drawn, Medical Claims are high among the married clients, the urban residents, client with Uganda Product Type and most claims are placed in January considering the months January to April. The Ugandan Cover is highly claimed supposedly because majority of the individuals can’t afford the worldwide cover due to it high prices (premium) and at the same time individuals who purchase the worldwide cover purchase it as more for prestige reasons and thus can always foot the bills for minor cases. Based on the results drawn it is recommended that insurance providers revise the costing system (premium) so as to enable them charge insurance holders based on individual characteristics putting in to consideration the factors that influence Medical Claims. This will increase the profit margin of the Insurance Companies and at the same time I suppose it will actually better the services offered to the clients.