Everything I Do Is Wrong: The Danger Of 100-Percent Error Rate Audits
By Frank Cohen, Director of Analytics and Business Intelligence
As originally published by Racmonitor.com
“Well, I can’t get along no matter what I do
Well, we can’t get along no matter what I do
Yes, everything I do is wrong, no matter what I do”
-B.B. King – “Everything I Do Is Wrong”
“Women may have many faults, but men have only two: everything they say and everything they do.”-Anonymous
In any given year, I am engaged as a statistical expert in some 75-plus government and private payer audits. My job, in most cases, is to validate the accuracy of the statistical models used by the government to create their samples, gauge point estimates and error, and when taking part in an extrapolation audit, verify that the calculation used to extrapolate the damages is done correctly. While in almost every audit I find that the auditor committed statistical mistakes, it has been rare that they find that 100 percent of claims were billed in error. But this has not been the case recently.
