CMS has projected a total of $2.13 trillion in payments for Medicare care under the program for the year 2009.  Fraud experts have estimated that between 3 and 10% of the total Medicare spending is related to fraud. TC3, a health care technology organization reports a savings of 1 to 3 % of the total of claims payments with the utilization of predictive analytics - a potential savings to Medicare of $21.3 to $63.9 million. This presentation discussed predictive modeling as a process used in predictive analytics to create a statistical model of future behavior. Predictive analytics is the area of data mining concerned with forecasting probabilities and trends.

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