Risk Adjustment

Basics of Risk Adjustment in Healthcare

CMS 2025: What It Means for Risk Adjustment Coding Equity, Accuracy, and the New Rules of the Game.

Understanding the Foundation

Risk adjustment is a statistical process that takes into account the underlying health status and health spending of enrollees in an insurance plan. It ensures that health plans are appropriately compensated for taking on patients with complex, chronic conditions.

The Role of Hierarchical Condition Categories (HCCs)

HCCs form the backbone of Medicare Advantage risk adjustment. Under the new V28 model, the classification of diseases has been reorganized. Codes that previously grouped together might now fall into different categories or have different risk weights.

Key Takeaway

Specificity is king. Under-documenting a condition not only affects patient care tracking but also leaves significant revenue on the table.

Our CAC platform does not just suggest codes; it acts as a concurrent CDI (Clinical Documentation Improvement) tool, prompting providers to add the necessary specificity before the chart is even closed.

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