Predictive Modelling of Healthcare Insurance Costs Using Machine Learning

• DOI: 10.20944/preprints202502.1873.v1
• Publication Date: 2025-02-27T05:19:51Z
• Authors: Addy Arif Bin Mah...; Lu Ee Shan; Adruce Bin Khairudin; Ng Ting Xi; Noor Ul Amin

With more healthcare spending comes the added demand for predictive models, which would deliver forecasts of medical insurance as well propose significant determining factors. Machine learning is used here to analyze bills in based on demographic and lifestyle factors such age, BMI, smoking status, geography. Based Medical Insurance Cost Prediction dataset, three regression models—Linear Regression, Random Forest Gradient Boosting Regression—were employed forecast charges. outcome, most variable influencing revealed be followed by BMI age. Among models employed, Regression had maximum capability, outperforming Linear struggled with complex relationships, experienced some overfitting. The study highlights ability machine enhance pricing optimization, enabling enhanced risk assessment providers decision-making individuals. research promotes optimization cost estimation methods sector data insights.