True or False: You can only model contract changes against claims from the past month.

• A. True
• B. False
• C. Not enough information
• D. Not applicable

Answer: (B)

Modeling contract changes effectively uses data from a relevant time window, not just the most recent month. Claims can arrive, be processed, and trigger changes over varying time scales, so relying only on the past month can miss longer-term patterns, backlogs, or lead-lag effects between claims and changes. A broader window helps capture trends, seasonality, and accumulated impact, giving a more accurate view of how changes respond to claims. In practice, you choose the window based on the situation, but you aren’t restricted to only the past month.