What Is Risk Adjustment?
Risk adjustment is defined by healthcare.gov as a statistical process that takes in to account the underlying health issues and health spending of the enrollees in an insurance plan when looking at their health care outcomes or health care costs. In other words, risk adjustment focuses on the accurate capture of a person’s demographics, health conditions and health status, which ensures the health plan receives the compensation it needs to effectively support and keep its members healthy.
The Medicare Advantage risk adjustment process is regulated by the Centers for Medicare & Medicaid Services and uses the Hierarchical Condition Categories (HCCs) risk model to estimate future health care costs. The CMS HCC model includes chronic conditions as well as some serious acute conditions. There are more than 75 HCCs that map to approximately 9,000 ICD-10 codes. These HCCs in addition to demographic factors, like age and gender, make up a person’s risk score, also known as their Risk Adjustment Factor (RAF).
Why Should You Care About Risk Adjustment?
Risk adjustment gives better insight into a person’s health risks and needs. A Medicare Advantage member’s risk score resets with CMS each year on January 1, which is why it’s important to not only see, but also document a person’s risk conditions every year. Accurate documentation leads to accurate risk scores, which results in accurate payments to the health plan. This ultimately allows Samaritan Health Plans to maximize care for its members through various programs and support.
Samaritan Health Plans works closely with providers on its risk adjustment efforts. A couple of those efforts include retrospective chart reviews and ongoing monitoring, which consist of validating medical records throughout the year to ensure accurate payment.
Where Can I Find More Risk Adjustment Information?
Documenting For Risk Adjustment
COPD - Coding & Documentation
Morbid Obesity - Coding & Documentation
Substance Use Disorders - Coding & Documentation
Additional Resources
Medicare Advantage Risk Adjustment | CMS
CMS CSSC Instructional Videos
Justice News | DOJ | Department of Justice
Other questions? Contact Risk Adjustment at SHPRiskAdjustment@samhealth.org