What is the value of invalidated Health Condition Categories (HCCs) based on?\

The value of invalidated Health Condition Categories (HCCs) is based on the total population of the health plan. This is because HCCs are a classification system used to predict healthcare costs and assess risk based on the health status and demographic characteristics of members enrolled in a health plan. When data is invalidated, it means that it is no longer considered reliable for accurately reflecting the overall risk profile of the entire population. Therefore, the totality of the health plan's members provides a broader context for assessing costs, rather than focusing solely on individual cases or isolated segments of the population.

This approach helps ensure that the risk adjustment process takes into account the diverse range of health conditions present within the entire enrolled group, facilitating more accurate financial planning and resource allocation.