Notes

Now that we now where the rise is coming from, figuring out what it is coming from will help to implement a solution.

From the description of the problem, the main two drive factors to be considered are employee growth or amount of claims rising vs narcotic presence.

The graph on the left shows total claim cost per year again, but this time broken down by subsidiary and whether it was a high narcotic claim or not.

For when their is not high narcotic presence, BigCo has not seen much of an increase at all, so we know the problem is not there, and with SmallCo there is a linear increase but we will talk about that with the graph on the right.

However, when their is high narcotic presence, BigCo's claim cost is skyrocketing in the past 2 years so high narcotic presence is a drive factor, while smallCo is staying level which indicates the program is succeeding

Now to look at employee growth we have total number of claims in the orange and average cost of a claim in the blue broken down by year and subsidiary with BigCo on the top and SMallCo on the bottom. For BigCo you can see that the total number of claims is decreasing, yet the average cost of a claim is rising which says to me its not an issue of client of employee growth and rather narcotics. For SmallCo we saw the increase for nonhigh narcotic claims on the left, but it can be explained here that the number of claims is going up while the average claim cost is going down, so this is not a worry other than employee or client growth