Full Answer
A RAF score of 1.00 indicates the patient is expected to use an average amount of resources. A score above 1.00 indicates high risk and therefore the patient is expected to use more than the average amount of resources. Conversely, a RAF score below 1.00 indicates low risk and less than average resource consumption is expected.
Risk adjustment is a payment methodology that uses ICD-10-CM codes, organized into Hierarchical Condition Categories (HCCs), to establish a risk score for each patient. Medical coders have a special role when it comes to coding for risk adjustment, and there are measures they can implement to increase coding accuracy.
AVERAGE MEDICARE PATIENT’s RAF IS 1.0 National Average 1.0 = $9000 non-MA CMS reimburses 1% HIGHER for every 0.01 RAF increase Approximately $900 for ever 0.1 RAF increase PATIENT RAF Score DIAGNOSIS CODING DRIVES THE RAF SCORE RAF SCORE DRIVES THE REIMBURSEMENT PROPER DOCUMENTATION RETAINS THE REIMBURSEMENT
Lower RAF score indicates healthierpopulation Lower RAF score may also indicatethe following issues: Patientshave not beenseen Lack of adequatechart documentation Lack of completeand accurate ICD10 coding HealthierPopulation 11 The RAF score identifies the members health status and drives reimbursement. Reimbursement Model RAF-HCC 12
A RAF score of 1.00 indicates the patient is expected to use an average amount of resources. A score above 1.00 indicates high risk and therefore the patient is expected to use more than the average amount of resources.
A RAF score, or risk adjustment factor score, is a medical risk adjustment model used by the Centers for Medicare & Medicaid Services (CMS) and insurance companies to represent a patient's health status. RAF scores are used to predict the cost for a healthcare organization to care for a patient.
HCC coding relies on ICD-10-CM coding to assign risk scores to patients. Each HCC is mapped to an ICD-10-CM code. Along with demographic factors such as age and gender, insurance companies use HCC coding to assign patients a risk adjustment factor (RAF) score.
1.000For most payers, a risk score of 1.000 is an average patient. Medicare calculates a beneficiary's RAF on an annual basis or cost per beneficiary per year. For example, if the RAF for your patient is 1.000, Medicare would expect to spend $10,000 on that patient.
Each patient's RAF score depends on your coding. Medicare Advantage and exchange plans are paid based on patients' RAF scores. A score of 1.00 is average, with the decimal places representing percentages above or below average.
HCC codes are additive, and some have multipliers. Population complexity/severity affects payment in many Medicare contracts. RAF is used for benchmarking for quality and safety. RAF enables identification and stratification for patient management.
RAF Score = Patient Demographics (Age, Gender, etc.) + Sum of HCC Codes (Factor) The risk adjustment factor score identifies a patient's health status. Each patient has a RAF score, which includes demographic elements like age and gender that can impact the final number.
The amount the government pays is calculated by a formula—multiplying the government's “county rate” by the patient's risk adjustment factor or RAF score. County rate x RAF score = Monthly capitation rate.
The Center for Medicare & Medicaid Services' (CMS) Hierarchical Condition Category (HCC) risk adjustment model assigns a risk score, also called the Risk Adjustment Factor or RAF medical abbreviation “RAF score”, to each eligible Medicare Advantage (MA) beneficiary.
Learn How Top-Performing Organizations Improve RAF Score Accuracy—Free eBookTo increase RAF score accuracy, start with HCC coding: ... Leverage your current EMR/RCM workflows: ... Educate providers on HCC coding's impact on reimbursement: ... Prepare for each patient visit: ... Employ—and value—HCC coding experts:More items...•
The CMS-HCC risk score for a beneficiary is the sum of the score or weight attributed to each of the demographic factors and HCCs within the model. The CMS-HCC model is normalized to 1.0. Beneficiaries would be considered relatively healthy, and therefore less costly, with a risk score less than 1.0.
The purpose of the Medicare risk scores is to estimate a relative cost factor. (i.e., it is a payment risk score). CMS calculates individual beneficiary-level risk scores by adding the relative factors associated with each beneficiary's demographic and disease factors.
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How are RAF Scores Calculated? 1 The more accurately and completely you represent the disease burden of your patient in your documentation, the greater your monthly capitation and the lower the chance of clawbacks. 2 The relative RAF adjustments for different disease burdens are not necessarily intuitive. An amputated pinky toe carries triple the capitation adjustment of controlled diabetes. 3 Make sure you see your patients at least once every 12 months to keep them healthy and address all their chronic illnesses. Otherwise, CMS won’t know their disease burden while calculating their capitation—they wipe the disease burden slate clean each year, so you’ll be covering their healthcare costs with less money. 4 Because of advantageous differential capitation rates, assuming the care of patients in the nursing home is sustainable and well worthwhile.
It takes a while for CMS to do it’s calculations. Broadly speaking, diagnostic codes are collected and capitation rates adjusted for each patient every 6 months, so it can be some time before a submitted diagnostic code can actually affect the capitation rate.
The “conversion factor” for demographics usually range from 0.6-1.2—based on age, sex, whether the patient is in a nursing home and why they’re eligible for Medicare in the first place. In general, the more vulnerable to illness you would expect a person to be, the higher the demographic conversion factor.
Overcoding in risk adjustment refers to using an incorrect code with a higher score value rather than the correct code based on documentation.
As much as it is important to accurately capture all conditions that currently exist and require treatment, it is equally important to not submit diagnosis codes for conditions the documentation does not support.
There may be instances in which the coder cannot make an educated determination of the correct code and clarification from the provider is necessary prior to claim submission. If warranted, the provider may attach an addendum to the office note clarifying the documentation.
Risk adjustment coders should never suggest what to document solely for risk adjustment purposes; it is a good idea to avoid focusing on risk value examples when reviewing a medical record with the provider, even if risk value was part of the decision to initiate education to the provider.