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Confidence limits for estimates of totals from stratified samples, with application to medicare Part B overpayment audits

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  • Donna Mohr

Abstract

Superpopulation models are proposed that should be appropriate for modelling sample-based audits of Medicare payments and other overpayment situations. Simulations are used to estimate the coverage probabilities of confidence intervals formed using the standard Stratified Expansion and Combined Ratio estimators of the total. Despite severe departures from the usual model of normal deviations, these methods have actual coverage probabilities reasonably close to the nominal level specified by the US government's sampling guidelines. An exception occurs when all claims from a single sampling unit are either completely allowed, or completely denied, and for this situation an alternative is explored. A balanced sampling design is also examined, but shown to make no improvement over ordinary stratified samples used in conjunction with ratio estimates.

Suggested Citation

  • Donna Mohr, 2005. "Confidence limits for estimates of totals from stratified samples, with application to medicare Part B overpayment audits," Journal of Applied Statistics, Taylor & Francis Journals, vol. 32(7), pages 757-769.
    • Handle: RePEc:taf:japsta:v:32:y:2005:i:7:p:757-769
    DOI: 10.1080/02664760500079712
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