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The Quest for the Holy Grail: OLAP Approaches for Calculating Actuarial Measures

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Executive Summary

At Highmark Inc. Online Analytical Processing (OLAP) is used to provide access to large amounts of data stored in Highmark's data storage system, the "Enterprise Data Warehouse." A common actuarial metric is the calculation of Per Member Per Month cost, or PMPM. The numerator in this ratio is total claims cost in dollars. The denominator is total members enrolled, including members who have no claim costs and are not represented in the numerator. This metric is a challenge in standard OLAP reporting tools because the numerator and denominator represent different populations at different levels of summation.

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