Risk adjustment of Medicare capitation payments using the CMS-HCC model
Pope, Gregory C.
Ellis, Randall P.
Ash, Arlene S.
Ayanian, John Z.
Lezzoni, Lisa I.
Ingber, Melvin J.
Levy, Jesse M.
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Citation (published version)Gregory C Pope, John Kautter, Randall P Ellis, Arlene S Ash, John Z Ayanian, Lisa I Lezzoni, Melvin J Ingber, Jesse M Levy, John Robst. 2004. "Risk adjustment of Medicare capitation payments using the CMS-HCC model.." Health Care Financ Rev, Volume 25, Issue 4, pp. 119 - 141.
This article describes the CMS hierarchical condition categories (HCC) model implemented in 2004 to adjust Medicare capitation payments to private health care plans for the health expenditure risk of their enrollees. We explain the model's principles, elements, organization, calibration, and performance. Modifications to reduce plan data reporting burden and adaptations for disabled, institutionalized, newly enrolled, and secondary payer subpopulations are discussed.
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