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Value of ACA Coding Improvement: Market Share and Market Effects | ||
The risk
adjustment program, a permanent feature of the Affordable Care Act, aims
to mitigate issues in the commercially-insured guaranteed issue
individual and small group markets. Under the ACA risk adjustment
program, a member’s risk is measured using the Department of Health and
Human Services hierarchical condition categories (HHS-HCC) risk adjuster
model. In this particular model, carriers are incentivized to capture
all existing member diagnoses that trigger any of the predefined 146
HCCs and condition groupings. By doing so, the carrier will maximize its
average plan liability risk score and thus optimize its revenue transfer
position relative to the market. |
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