What is Risk Adjustment coding?
Risk Adjustment coding is an actuarial tool that is used to predict health care cost. The process involves examining diagnosis reports to measure a patient’s health status. Risk adjustment is a method by which the patient’s health status is measured and compared on an equal scale. There are five different types of risk adjustment models, including Chronic Illness and Disability Payment System (CDPS), Hierarchical Co-Existing Conditions (HCC), Health and Human Services HCC Model, Diagnosis Related Groups (DRG), and Adjusted Clinical Groups (ACG).