What is the primary focus of the CMS-HCC risk adjustment model?

The primary focus of the CMS-HCC risk adjustment model is to provide standardized payment based on health status. This model is designed to adjust payments to health plans based on the health status and demographic characteristics of the enrolled population. It ensures that plans receive appropriate funds to manage patients who have varying levels of health complexity. By linking payments to health status, the model incentivizes healthcare providers to improve patient care rather than merely focusing on the volume of services provided. This method supports equitable resource allocation and encourages the management of higher-risk patients who may require more intensive care and resources. This functionality is crucial in fostering a healthcare environment that prioritizes patient outcomes and effective health management.