Independent Actuaries Validate Premise Health’s Approach to Measuring Total Cost of Care Savings and Calculating Return on Investment

Milliman, an internationally recognized actuarial and consulting firm, evaluated Premise Health’s methodology for measuring total cost of care savings and calculating return on investment (ROI) for Premise Health’s services. Milliman concluded the methodology Premise uses to calculate cost savings for clients is actuarially sound and appropriate for calculating ROI. The use of an appropriate methodology is an important part of Premise’s process of measuring the value that employers and risk-bearing organizations can receive when working together to deliver advanced primary care.

Milliman experts reviewed a detailed description of Premise’s methodology, alternative methodologies that were tested and not selected, sample client annual reports, and detailed membership, medical claims, and prescription drug claims data for six client case studies. After extensive analysis, Milliman validated the methodology Premise has been using for several years, while providing incremental enhancements to further improve statistical validity. Premise will continue to apply the validated methodology when measuring client savings, ROI, and annual book of business analyses.

To access the full report from Milliman, click here.