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HCC & Risk Assessment Coding
Candace Lewis, MBA, CPC – Director of Revenue Cycle Management
May 17, 2017
Disclaimer
Medical Advantage Group would like to disclose that no one
in a position to control or influence the content of this activity
has reported relevant financial relationships with
commercial interests.
The information and guidelines contained in this activity are
generalized and may not apply to all practice situations.
Medical Advantage Group recommends that legal advice be
obtained from a qualified attorney for specific application to
your practice. The information is intended for educational
purposes and should be used as a reference guide only.
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Agenda
» Introduction to HCC & Risk
Adjustment
»FFS Coding vs. HCC Coding
»Coding Rules
»Common Errors
What is Risk Assessment?
A process for health
insurance plans, such as
Medicare Advantage
plans and ACA plans, to
be compensated based
on underlying health
conditions of enrollees
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Payment is
adjusted due to
– Patient age
– Disability
– Financial status
– And diagnoses
What is HCC?
Hierarchal Condition Categories
– Sorting mechanism for chronic conditions that assigns a
payment value on care of a patient with that condition
RxHCC
– Separate consideration of prescription costs for a patient
with that specific condition. This may be more or less
than the HCC, and some conditions like HTN have an
RxHCC, but no HCC.
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Types of Risk Adjustment Plans
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Medicare Advantage plans
CDPS
Private Risk Pools (created under ACA)
– All premiums go into a pool and are redistributed based
on the patient population risk score
How Does It Work?
Insurance company
pays the physician for
services performed
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If chronic conditions
are properly
documented and
coded CMS pays the
insurance company
extra for the patient
based on the patient’s
risk adjustment score
How Does It Work?
Each diagnosis that is costly to manage is assigned an
HCC
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How Does It Work?
Each HCC is assigned a risk adjustment factor score
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How Does This Relate to CPC+ ?
CPC+ patients
receive a risk
adjusted
monthly care
management
fee
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CMS assigns
beneficiaries to
a risk tier
based on the
individual’s
HCC score
Scores are
generated for
all beneficiaries
and updated
yearly
How Does This Relate to CPC+
Beneficiary scores will determine which risk quartile the
beneficiary will be assigned
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Shift in Focus
Most coding is done for medical necessity of the visit
HCC coding requires a wider focus, reporting any
chronic conditions that are documented and have an
effect on the care.
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Similarities
Code to the
highest level of
specificity
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Each individual
encounter must
be able to stand
on it’s own.
Review coding
guidelines on a
regular basis to
ensure guidelines
are being followed
Differences
Each chronic condition
needs to be reported
once a year or the payers
will miss out on additional
risk adjustment
reimbursement
In FFS reporting medical
necessity is required. In
HCC coding MEAT is
required.
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Most Common HCC Diagnoses
Diabetes mellitus
Cancer
Heart arrhythmias
Ischemic heart disease
COPD
Congestive heart failure
Vascular disease
Angina
Stroke
Rheumatoid Arthritis
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Do Your Diagnoses Have MEAT?
Code ALL diagnoses that have MEAT…
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Measured
signs,
symptoms,
progression /
regression
Evaluated
test results,
response to
treatment
Addressed
order tests,
referrals, review
records
Treated
scripts,
therapies
Do Your Diagnoses Have MEAT?
MEAT must be specific and have a direct link between
the disease and the MEAT
MEAT can be negative results or findings
MEAT must be documented in the same date of service
MEAT can be in any part of the progress note
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Causal Relationships
Proper documentation is imperative of
causal relationships
– Diabetic Nephropathy
– Diabetes and Nephropathy
HCC payments are greatly affected by the
relationship and there are costly penalties
to the payers if this is coded incorrectly
– Penalties apply whether upcoded or
downcoded
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Common Errors
Disappearing Diagnoses
– Patient was documented
as morbidly obese in
2015. Patient is still
morbidly obese, and
provider has even
discussed weight loss
with the patient.
However, only the BMI
was reported.
Popular Offenders:
• Morbid Obesity
• Lower extremity amputation
status
• Ostomy status
• Transplant status
• Down syndrome
• HIV status
• Self-harm; Suicidal ideation
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Common Errors
Use the most specific code possible
ICD-10 Code ICD-10 DescriptionHCC
Group
Risk Adjusted
Factor
F329Major depressive disorder,
single episode, unspecified 0 0.00
F320Major depressive disorder,
single episode, mild58 0.395
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Common Errors
Missed diagnosis
– Look for diagnosis to be documented elsewhere in the
record
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Common Errors
Not documenting due to
– Neuropathy due to
– Diabetes
– Alcoholism
– Documentation including “due to” will support the causal
relationship, allowing for proper reporting of diagnoses
History Of
– Only use history of for a condition that has been
completely resolved
– Coders can not code for a condition documented as
“history of”
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Common Errors
Documentation of med list review
– Including indication that the patient med list was reviewed
on this date will add MEAT to your progress note for
chronic conditions
Avoid ambiguity
– Coders can not make clinical decisions, make
assumptions or fill in the blanks
– If it isn’t written down, the coder can not code it
Document with words, not codes
– Per CMS guidelines codes are not documentation, must
use words for diagnoses and documentation
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Medical Advantage Group
Industry leading practice transformation company
20 years of experience helping practices succeed in
value-based contracts
Transformed more than 1,000 primary care practices in
Michigan and Ohio
Key partner in building one of
the largest PCMH networks in the U.S.
Key partner in the Great
Lakes Practice Transformation
Network, helping Ohio
practices prepare for MACRA
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Sherri Kent (Ohio)517-999-8017 • [email protected]
Jeff McKay (Michigan)517-999-8005 • [email protected]
CANDACE LEWIS, MBA, CPCDIRECTOR, REVENUE CYCLE MANAGEMENT
WORK: 517-219-9600
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