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Machine Learning for Fraud Detection in Healthcare

  • Healthcare fraud costs billions of dollars annually. Fraudulent providers overcharge insurance, submit inflated claims, or game the reimbursement system.
  • In this project, a supervised machine learning pipeline was built to identify high-risk providers based on claim-level data, with a focus on accuracy, recall, explainability, and handling class imbalance.
  • Key features were engineered to reflect billing patterns, visit frequency, and reimbursement behavior, aiming to distinguish honest providers from those likely gaming the system.
  • XGBoost provided the best tradeoff between precision and recall, making it the recommended model for deployment in fraud detection in healthcare.

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