MODELS AND NORMALISATION

Your risk adjustment scores move every year because the model was recalibrated, not because patients changed.

Risk adjustment HCC coding is the practice of capturing patient diagnoses accurately enough that a health plan is paid for the risk it actually carries. Diagnoses map into hierarchical condition categories, those categories feed a regression model, and the model produces a risk score. The model is not fixed. It is recalibrated on new data, versioned, and normalised so that the average score stays at a constant, which means a score can move without a patient changing at all.

A risk adjustment lead comparing model version records against year on year score movement on a health plan office screen, used to show where score changes are actually explained.
A score without its model version is a number without a scale.
1.0average risk score a recalibrated model retains
2018benefit year enrollee data recalibration began
70.5manual section comparing RxHCC and CMS-HCC

Neurobird Risk Adjustment HCC Coding in short

  • Record which model version and benefit year a given score was produced under.
  • Link each captured condition back to the documentation that supports it, so a category can be defended.
  • Separate coding driven movement from recalibration driven movement when scores change.
  • 1.0 Recalibrated models retain an average 1.0 risk score, while individual and plan average scores may still move. CMS Medicare Managed Care Manual chapter 7
  • 70.5 CMS guidance sets out the similarities and differences between the Part D drug model and the Part C medical model in a dedicated section. CMS Medicare Managed Care Manual chapter 7
  • Pricing runs 180 to 920 US dollars per month across 3 tiers. Early access is free.
The daily reality

What health plans and provider groups actually deal with

A plan's average risk score shifts and nobody can separate the coding change from the model recalibration.
Documentation supports a condition but the diagnosis never reaches the submission, so the category is lost.
Two different models apply to the same population and the team keeps treating them as if they were one thing.

Why it stays broken

Coding tools look at the encounter and payment tools look at the score, and the model sits between them changing shape. Categories are regrouped between versions, models are recalibrated on newer data, and a normalisation factor is applied so the average score stays put. None of that is visible from a chart or a remittance, so movement gets attributed to whatever is easiest to blame.

1.0 is the average risk score a recalibrated model is designed to retain, even while individual scores move.

HCC Groups refers to HCCs that are grouped together in the HHS-HCC risk adjustment model.

CMS, potential updates to HHS-HCC risk adjustment models, source
What it does

Neurobird Risk Adjustment HCC Coding Operations Platform

Keep the capture, the model version and the normalisation in one view, so a change in score has an explanation rather than a theory.

  • 1Record which model version and benefit year a given score was produced under.
  • 2Link each captured condition back to the documentation that supports it, so a category can be defended.
  • 3Separate coding driven movement from recalibration driven movement when scores change.
  • 4Track Part C and Part D models distinctly, because they are related but not the same.

What changes with Neurobird Risk Adjustment HCC Coding?

The same work, read left to right: how it runs today, and how it runs once the record is in one place.

Risk adjustment hcc coding: current practice compared with Neurobird Risk Adjustment HCC Coding
TodayWith Neurobird Risk Adjustment HCC Coding
A plan's average risk score shifts and nobody can separate the coding change from the model recalibrationRecord which model version and benefit year a given score was produced under.
Documentation supports a condition but the diagnosis never reaches the submission, so the category is lostLink each captured condition back to the documentation that supports it, so a category can be defended.
Two different models apply to the same population and the team keeps treating them as if they were one thingSeparate coding driven movement from recalibration driven movement when scores change.

Who is this for?

Three places a risk score becomes unexplainable.

Medicare Advantage plan

Normalisation moved the baseline

Recalibrated models retain an average 1.0 risk score, but individual beneficiaries' scores may change, as may plan averages, depending on each person's combination of diagnoses. Without the model version recorded, that movement looks like a coding problem.

Commercial plan

A model version change

Classification updates are considered between versions, with candidate models compared against the current one. A plan that does not record which version produced a score cannot compare years honestly.

Provider group

Two models, one population

The Part D drug model and the Part C medical model are related but distinct, and are compared explicitly in CMS guidance. Treating them as interchangeable produces confident answers to the wrong question.

Interactive preview

See it work

A short walk through capture, submission and score explanation.

Risk adjustment workspace
Unbilled found$0
Line itemAmount
Score explained$1,840
Condition captured$620
Submission accepted$3,275
Condition captured$455

Click recover to add a missed line to the invoice.

How does Neurobird Risk Adjustment HCC Coding work?

  1. Capture

    Conditions are recorded against the documentation supporting them, so the category has evidence behind it rather than an assumption.

  2. Submit

    Submissions are tracked against the processing systems that acknowledge them, so a diagnosis that never landed is visible rather than presumed.

  3. Explain

    Score movement is attributed between coding, population and model change, which is the question leadership actually asks.

What the numbers say about risk adjustment HCC coding

Risk scores are model outputs. Reading them without the model version is like reading a temperature without the scale.

1.0

Recalibrated models retain an average 1.0 risk score, while individual and plan average scores may still move.

CMS Medicare Managed Care Manual chapter 7
70.5

CMS guidance sets out the similarities and differences between the Part D drug model and the Part C medical model in a dedicated section.

CMS Medicare Managed Care Manual chapter 7
V06a

Candidate model updates are presented by comparing regression results for the current version against the proposed V06a models.

CMS potential updates to HHS-HCC models
2018

From the 2018 Payment Notice, masked enrollee level data has been collected and used to recalibrate the models and update the methodology.

CMS potential updates to HHS-HCC models

Risk adjustment hcc coding software questions, answered

Key terms

What is HCC risk adjustment coding?
It is the practice of documenting and coding patient conditions so they map into hierarchical condition categories used to predict expected costs. Those categories, together with demographic information and enrolment duration, feed a regression model that produces a risk score for each person. Payment follows the score. The coding work is therefore not administrative tidying; it is the input to a payment model, and an unrecorded condition is an unfunded one.
What is a model version?
It is a specific published version of the classification and its coefficients. CMS considers classification updates and compares candidate models against the current ones, for example presenting regression results for proposed models alongside the version in force. Because categories can be regrouped between versions, comparing two years without recording which version produced each score gives a misleading answer.

Why do risk scores change without patients changing?

Because the model changes. Models are recalibrated on newer data, and CMS applies a normalisation factor so the average risk score stays at 1.0 after recalibration. Recalibrated models retain that average, but individual beneficiaries' scores may change, and so may plan averages, depending on each person's combination of diagnoses. Movement in an average is therefore not automatically evidence of better or worse coding.

Are the Part C and Part D models the same?

No, though they are closely related. CMS guidance describes the similarities and differences between the Part D drug model and the Part C medical model in its own section. They serve different purposes and behave differently, so analysis that blends them produces confident conclusions about the wrong population.

Is the software available now?

No. It is in development and open for early access. We are building the model version and normalisation tracking with risk adjustment teams who have to explain score movement to a board.

Why we are building this

Risk scores get discussed as though they were measurements. They are model outputs, and the model moves.

When an average shifts, the honest answer is usually a mixture of coding, population and recalibration. Most teams cannot separate those three, so the conversation defaults to blaming coders or celebrating them, neither of which is reliably true.

So we are recording the model version alongside the capture. The Neurobird Team would rather help a team explain a number correctly than help them produce a bigger one.

Neurobird Team neurobird.com

Where the requirement comes from

Primary sources, straight from the regulators.

How much does Neurobird Risk Adjustment HCC Coding cost?

Early access pricing, held for the first 12 months for teams who help shape the build.

Single plan
$180
per month
  • Capture and documentation links
  • Model version records
  • Submission tracking
Join early access
Multi line
$460
per month
  • Part C and Part D separation
  • Score movement attribution
  • Audit export
Join early access
Enterprise
$920
per month
  • Several populations
  • Retention policy
  • Direct support
Talk to us
10 early access places

Get free early access

We want risk adjustment leads who have had to explain a score change they could not decompose.

Straight answer on where this is: The software is unfinished. Capture links, model version records and submission tracking work. There is no direct submission integration and score attribution is early.

Prefer email? Write to office@neurobird.com and a person will reply. No autoresponder.