Abstract— The anomaly or outlier detection is one of the applications of data mining. The major use of anomaly or outlier detection is fraud detection. Health care fraud leads to substantial losses of money each year in many countries. Effective fraud detection is important for reducing the cost of Health care system. This paper reviews the various approaches used for detecting the fraudulent activities in Health insurance claim data. The approaches reviewed in this paper are Hierarchical Hidden Markov Models and Non Negative Matrix Factorization. The data mining goals achieved and functions performed in these approaches have given in this paper.
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