Abstract
We draw inspiration from the recent success of loyalty programs and targeted personalized market campaigns of retail companies such as Kroger, Netflix, etc. to understand beneficiary behaviors in the healthcare system. Our posit is that we can emulate the financial success the companies have achieved by better understanding and predicting customer behaviors and translating such success to healthcare operations. Towards that goal, we survey current practices in market micro-segmentation research and analyze health insurance claims data using those algorithms. We present results and insights from micro-segmentation of the beneficiaries using different techniques and discuss how the interpretation can assist with matching the cost-effective insurance payment models to the beneficiary micro-segments.