Regardless of how your business conducts its finances, there are essential guidelines that are important to know about CMS risk adjustment. CMS uses these guidelines to ensure that risk adjustment decisions are appropriate and fair. They also ensure that risk adjustment decisions are in the patient’s best interests. The policies are provided in several ways, including through audits, training, crosswalks, and models.
Commercial risk adjustment
Generally speaking, CMS risk adjustment guidelines can be divided into coding and reimbursement. The latter involves the healthcare provider submitting claims for payment. The coding specialist must adhere to CMS’s Official Guidelines for Coding and Reporting when performing the coding portion.
Several parts of the Medicare program use risk adjustment. The most significant difference between systems is the data source. Typically, commercial risk adjustment health plans rely on the accurate submission of medical record data each year.
Risk adjustment helps healthcare providers treat patients with different healthcare needs. It also helps ensure that healthcare providers get paid fairly.
The coding and reporting aspects of risk adjustment can be complicated. However, there are a few fundamental guidelines that you should follow. First, consider hiring a risk adjustment RA Coding Specialist. This specialist will help you accurately identify patients’ risk scores and save you revenue.
CMS-HCC crosswalk
Despite the name, the CMS-HCC crosswalk is a relatively simple tool. It calculates a risk score based on chronic and severe acute conditions, which are expected to impact healthcare costs in the future significantly. It is based on a master list of CMS-HCC categories.
These conditions are grouped into ICD-10-CM diagnosis groups based on their cost patterns. Each group includes diagnoses that are reported on both inpatient and outpatient claims. The HCCs in each group are then mapped to ICD-10 codes to provide more accurate estimates of costs.
The CMS-HCC crosswalk is also used to determine risk adjustment factors, which scale payments to reflect a patient’s risk. The factors include the patient’s age, gender, and living situation. Again, the goal is to improve patient outcomes while reducing costs.
The crosswalk is the first step in calculating the risk score. The second step involves determining the relative risk of each diagnosis. The final step is to list the diagnoses most likely to impact healthcare costs significantly.
CMS-HCC model
Several factors contribute to the calculation of a patient’s risk adjustment score. These factors include the patient’s age, gender, and the number of resources used for treatment. In addition, some payers use proprietary risk adjustment models.
The Centers for Medicare and Medicaid Services (CMS) implemented the HCC risk adjustment approach in 2004. This model allows CMS to calculate risk scores based on diagnoses submitted by Medicare Advantage organizations. In addition, this model uses ICD-10 codes to assign risk factors and demographics.
Every category of conditions has a risk adjustment factor. This component is allocated depending on demographics, age, and gender. These elements aid in adjusting payments to represent the patient’s risk. Some models also include data from the area deprivation index.
These factors are also used to predict expenditures. A patient’s RAF score is highest for conditions that use many resources. The higher the score, the more the patient is expected to use medical treatment.
CMS-RADV audit
Performing a RADV audit can be an overwhelming task. Many elements go into the process. Keeping a focus on the task at hand is critical.
Using effective coding software can help you complete your RADV audit. It will also help you determine what additional information is required for proofing the audit.
In February 2012, CMS announced its new methodology for annual RADV audits of MA plans. This methodology included several changes to existing regulations. It also had a new approach to recouping payments from MA plans.
As it is formally known, the FFS Adjuster was designed to help CMS offset the large amounts it would otherwise recoup from MA organizations. The FFS Adjuster represents the level of diagnoses not supported by medical records in the fee-for-service system. In addition, it is intended to account for the different standards of documentation used by MA organizations.
The new methodology includes a process for extrapolating results from sample audits. This process allows CMS to estimate payment errors for the entire contract based on the rate of diagnoses not supported by medical documentation.
CMS-HCC training for individuals with disabilities
During the last two decades, the Centers for Medicare & Medicaid Services (CMS) has been working on an improved model of Medicare risk adjustment called the CMS-HCC model. This model provides a comprehensive framework for risk adjustment in Medicare.
The model uses ICD-9-CM and ICD-10 diagnosis codes to create Condition Categories. These categories are then assigned a risk factor. Finally, the value of each Condition Category is added up to make the overall risk score for a member.
The model is based on a sample of Medicare-aged and disabled beneficiaries. Approximately 95 percent of the piece is community residents.
The model uses a weighted least squares multiple regression to calibrate the model. The results are used to calculate provisional rates for Medicare patients in the Medicare Advantage and Medicare Parts A and B programs. The model has been updated to account for new Medicare populations and validated in real-world settings.
The model also provides a common framework for risk adjustment across Medicare subpopulations. It has been modified to account for the unique needs of dual-eligible enrollees, and it has been adapted for Medicare subpopulations that are newly enrolled.