RAF: Risk Adjustment Factor
Dr. Krutagni Mehta
Presenter
Dr. Gauvain Kankeu
Presenter
Dr. Nimesh Khanal
Presenter
Dr. Dhriti Gupta
Writer and Presenter
Dr Vinay Patel
Director and Presenter
J C M I ' S G R A N D T E L E C O N F E R E N C E
Clinical Externs, Under supervision of Dr Jean Charles, JC Medical Centers, Fl, USA, September 10th, 2021
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
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What is RISK?
Financial risk of profit/loss
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
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What is risk ADJUSTMENT and why?
Financial risk of profit/loss
Risk selection
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
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risk score (RAF)
Health status + Demographics
Age,
Gender,
Occupation
HCC code
Risk
Adjustment
Risk Adjustment is a methodology that equates the health status of
a person to a number, called a risk score, to predict healthcare costs.
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
This method puts related medical
diagnoses (ICD 10) into groupings
based on resource use.
CMS (centre for Medicare and Medicaid services)
risk adjustment model
Uses HCC model for calculating risk score (RAF)
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
Risk Adjustment
Processing System
(RAPS:OLD)
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
Not every diagnoses maps to HCC!
COLLECTIVE ANNUAL ASSESSMENT (ICD-10-CM)
FOR MR. JOHN
Abdominal
pain
Tuberculosis Diabetes
A sprain
Morbid
obesity
Acute
appendicitis
Myocardial
infarction
Hepatitis C
HCC CROSSWALK
Morbid obesity
Diabetes
Myocardial infarction
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
A sprain
Acute appendicitis
Abdominal pain
Hepatitis C
The CMS-HCC model focuses on chronic health conditions likely to affect long-term health expenditures
(included in the HCC crosswalk) and purposefully excludes:
clinically
insignificant
diagnoses
(e.g.
non-diagnostic
diagnoses (e.g.,
a diagnosis of
or diagnoses
that are
definitively
treated (e.g.,
Medicare risk
adjustment
Rule #1
Hierarchy
HCC within same
Disease state are
mutually exclusively
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
17. T2-DM with
acute complication
18. T2D with
complications
19. T2D without
complications
Mr. John: Type 2 Diabetes mellitus
1. T2-DM
2. T2-DM with hyperglycemia
3. T2-DM with retinopathy
4. T2-DM with polyneuropathy
5. Diabetes KetoAcidosis
Medicare risk
adjustment
Rule #2
HCC from different
disease states are
additive.
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
HCC Diagnoses HCC CODE RAF SCORE
T2-DM with acute complication 17 a
Acute myocardial infarction 86 b
Morbid obesity 22 c
Demographics d
RAF score for Mr. John in the year 2021 a+b+c+d
CMS-HCC model
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
SOURCE: AMERICAN ACADEMY OF FAMILY PHYSICIANS
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
Our task #1
SOURCE: AMERICAN ACADEMY OF FAMILY PHYSICIANS
1. Select not only the
diagnosis codes that
describe why the
patient was seen but
also codes for any
chronic conditions that
affected treatment
choices. For example:
Our task #2
2. If a patient has a
serious chronic
condition with a
manifestation or
complication that has its
own code, use that code
rather than an
unspecified code.
Hepatitis C: RAF=0
Chronic Hepatitis C:
RAF: 0.165
SOURCE: AMERICAN ACADEMY OF FAMILY PHYSICIANS
Our task #3
3. Report diagnosis
codes annually.
Status codes:
Asymptomatic HIV
infection status
Quadriplegia and
paraplegia
BMI 40.0 – 44.9, adult
Acquired absence of
toes or feet
SOURCE: AMERICAN ACADEMY OF FAMILY PHYSICIANS
Reference
1. HTTPS://WWW.AAPC.COM/RISK-ADJUSTMENT/RISK-ADJUSTMENT.ASPX
2. HTTPS://WWW.AAFP.ORG/FPM/2018/0300/P21.HTML
3. HTTPS://WWW.AAFP.ORG/FPM/2016/0900/P24.HTML
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC

Risk adjustment factor, RAF

  • 1.
    RAF: Risk AdjustmentFactor Dr. Krutagni Mehta Presenter Dr. Gauvain Kankeu Presenter Dr. Nimesh Khanal Presenter Dr. Dhriti Gupta Writer and Presenter Dr Vinay Patel Director and Presenter J C M I ' S G R A N D T E L E C O N F E R E N C E Clinical Externs, Under supervision of Dr Jean Charles, JC Medical Centers, Fl, USA, September 10th, 2021
  • 2.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC Premium 100$ Premium 100$ Insurance Co. What is RISK? Financial risk of profit/loss
  • 3.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC Premium 100$ Premium 100$ Insurance Co. What is risk ADJUSTMENT and why? Financial risk of profit/loss Risk selection
  • 4.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC Premium 100$ Premium 100$ Insurance Co. risk score (RAF) Health status + Demographics Age, Gender, Occupation HCC code Risk Adjustment Risk Adjustment is a methodology that equates the health status of a person to a number, called a risk score, to predict healthcare costs.
  • 5.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC This method puts related medical diagnoses (ICD 10) into groupings based on resource use. CMS (centre for Medicare and Medicaid services) risk adjustment model Uses HCC model for calculating risk score (RAF)
  • 6.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC Risk Adjustment Processing System (RAPS:OLD)
  • 7.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC
  • 8.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC
  • 9.
    Not every diagnosesmaps to HCC! COLLECTIVE ANNUAL ASSESSMENT (ICD-10-CM) FOR MR. JOHN Abdominal pain Tuberculosis Diabetes A sprain Morbid obesity Acute appendicitis Myocardial infarction Hepatitis C HCC CROSSWALK Morbid obesity Diabetes Myocardial infarction SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC A sprain Acute appendicitis Abdominal pain Hepatitis C The CMS-HCC model focuses on chronic health conditions likely to affect long-term health expenditures (included in the HCC crosswalk) and purposefully excludes: clinically insignificant diagnoses (e.g. non-diagnostic diagnoses (e.g., a diagnosis of or diagnoses that are definitively treated (e.g.,
  • 10.
    Medicare risk adjustment Rule #1 Hierarchy HCCwithin same Disease state are mutually exclusively SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC 17. T2-DM with acute complication 18. T2D with complications 19. T2D without complications Mr. John: Type 2 Diabetes mellitus 1. T2-DM 2. T2-DM with hyperglycemia 3. T2-DM with retinopathy 4. T2-DM with polyneuropathy 5. Diabetes KetoAcidosis
  • 11.
    Medicare risk adjustment Rule #2 HCCfrom different disease states are additive. SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC HCC Diagnoses HCC CODE RAF SCORE T2-DM with acute complication 17 a Acute myocardial infarction 86 b Morbid obesity 22 c Demographics d RAF score for Mr. John in the year 2021 a+b+c+d
  • 12.
    CMS-HCC model SOURCE: AMERICANACADEMY OF PROFESSIONAL CODERS, AAPC
  • 13.
    SOURCE: AMERICAN ACADEMYOF FAMILY PHYSICIANS
  • 14.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC
  • 15.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC
  • 16.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC
  • 17.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC
  • 18.
    Our task #1 SOURCE:AMERICAN ACADEMY OF FAMILY PHYSICIANS 1. Select not only the diagnosis codes that describe why the patient was seen but also codes for any chronic conditions that affected treatment choices. For example:
  • 19.
    Our task #2 2.If a patient has a serious chronic condition with a manifestation or complication that has its own code, use that code rather than an unspecified code. Hepatitis C: RAF=0 Chronic Hepatitis C: RAF: 0.165 SOURCE: AMERICAN ACADEMY OF FAMILY PHYSICIANS
  • 20.
    Our task #3 3.Report diagnosis codes annually. Status codes: Asymptomatic HIV infection status Quadriplegia and paraplegia BMI 40.0 – 44.9, adult Acquired absence of toes or feet SOURCE: AMERICAN ACADEMY OF FAMILY PHYSICIANS
  • 21.
    Reference 1. HTTPS://WWW.AAPC.COM/RISK-ADJUSTMENT/RISK-ADJUSTMENT.ASPX 2. HTTPS://WWW.AAFP.ORG/FPM/2018/0300/P21.HTML 3.HTTPS://WWW.AAFP.ORG/FPM/2016/0900/P24.HTML SOURCE: AMERICAN ACADEMY OF PROFESSIONAL CODERS, AAPC
  • 22.
    SOURCE: AMERICAN ACADEMYOF PROFESSIONAL CODERS, AAPC

Editor's Notes

  • #10 . An ICD code maps to exactly one HCC, but not all ICD codes map to an HCC. Approximately 10,000 ICD-10 codes map to an HCC, but this is just 14 percent of the approximately 69,000 diagnosis codes.3 The CMS-HCC model focuses on chronic health conditions likely to affect long-term health expenditures and purposefully excludes non-diagnostic diagnoses (e.g., a diagnosis of abdominal pain), clinically insignificant diagnoses (e.g., a sprain), or diagnoses that are definitively treated (e.g., acute appendicitis).
  • #11 Hurray! You just became a medical coder.
  • #21 Dependence on renal dialysisDependence on ventilator statusZ79.4Long term, current use of insulinMonoplegia and hemiplegia colostomy