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CMS-HCC (Hierarchical Condition Category) Risk Adjustment Audits

In January, 2000, CMS announced they would be initiating an 8-year phase-in of a risk adjustment payment method for their Medicare Advantage (formerly Medicare + Choice) enrollees. The program is based on a set of Hierarchical Condition Categories (HCC) designed to pay the health plans an adjusted payment to account for care for the plan's sickest beneficiaries. CMS has published a complete list of the ICD-9 CM codes that make up the Hierarchical Condition Categories which must be documented in the patient's record on an annual basis by the physicians in order to qualify for the increased reimbursement. The increased reimbursement rates will be phased in as follows: 30% in 2004, 50% in 2005, 75% in 2006, and 100% in 2007. As a result of the phased in approach, it is important your organization get started immediately as there may be significant dollars at stake.

The Coding Source, LLC can assist you and your organization to conduct the necessary audits of your records to verify the physician have appropriately documented and coded the ICD-9 CM codes for these particular enrollees. Please contact us today to learn more about the services we provide and how we can assure you do not miss the many deadlines associated with this program.

Please contact Greg Sinaiko at greg@thecodingsource.com today.

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