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Medicare Risk Adjustment

Our goal is to share a few points about your vital role, as a provider, in recording your Medicare patient’s conditions and diseases. This will not only strengthen the Medicare Advantage program but also assist in the continuation of care and chronic disease management of members.

Diagnosis Coding is Critical show/hide

  • CMS relies on complete and accurate ICD-9-CM diagnostic codes, not the actual CPT codes.
  • All codes should be submitted at the highest level of specificity and include all appropriate secondary codes.
  • Claim submissions must be backed up by accurately maintained and documented medical records.
  • Medical records are subject to CMS validation and review at any time.
  • CMS requires a patient’s diagnosis codes to be re-substantiated every year; all codes are wiped out at the end of each year, even for chronic health conditions.

How Does Medicare Risk Adjustment Impact Providers? show/hide

  • Increased accuracy of coding helps MHP identify your patients who may benefit from disease management and other medical support programs.
  • More accurate medical status information can be used to match health care needs with appropriate level of care.
  • CMS outlines the responsibilities of physicians and other health care providers to include:
    • Reporting ICD-9-CM diagnostic codes, including secondary diagnoses, to the highest level of specificity
    • Maintaining accurate and complete medical record documentation (ICD-9-CM codes submitted must be justified with proper documentation)
    • Reporting claims and encounter data in a timely manner

Conduct a Comprehensive Medical Exam Early Each Calendar Year show/hide

  • MHP encourages a comprehensive medical evaluation to be performed every calendar year.
  • This is the opportunity to record ALL known health conditions for the patient.
  • MHP’s Medicare patients should be contacted to arrange an exam to revalidate ALL medical conditions.
  • Arranging an appointment with the patient early each calendar year will support CMS’ revalidation requirements.

Tips for Improving Coding Accuracy show/hide

  • Evaluate whether ALL diagnosis codes for the encounter are included in the claim transaction to MHP.
  • If your billing system limits you to only 4 codes, consider updating your system.
  • MHP and CMS require complete diagnosis coding to appropriately reflect a patient’s complete medical history.
  • If you have not done so already, consider installing an electronic medical records (EMR) system.
  • Talk to CMS about medical coding training or check Web sources for medical coding assistance.
  • Medical records should be made available to MHP’s Risk Adjustment Department for periodic review.

What is Medicare Risk Adjustment? show/hide

  • Medicare Risk Adjustment is the payment methodology mandated by the Balanced Budget Act of 1997 and used by the Centers for Medicare & Medicaid Services (CMS) to improve payment accuracy to Medicare Advantage organizations such as MHP.
  • CMS determines the risk for each member based on the ICD-9 diagnostic codes from a provider’s medical record.
  • Payments to MHP are adjusted (i.e. Risk Adjustment) and designed to more accurately cover a given member’s anticipated medical expenditures based on the health status of beneficiaries.
  • Diagnosis information is collected from provider-submitted encounter data sent to MHP in claim transactions
  • Encounter data with ALL diagnosis codes are submitted by MHP to CMS i.e. unlimited number of codes.

MHP depends on the proper submission of encounters and claim transactions from providers to improve the accuracy of those submissions. If we can assist you in this effort, please let us know.

Resources

90 Most Common Diagnoses

Diabetic Coding Tips

Cardiovascular Coding Tips

ICD9 Codes with HCC Category

PCP Designation Form

CMS Guide

CMS Medicare Risk Adjustment

Contact MHP

For additional information call
314-214-8405 or
Email us.

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