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After a patient’s total RAF is calculated, it undergoes two further calculations. First is the normalization ratio calculation. CMS creates this number by looking at the average cost of care and health status of fee-for-service patients over a 5-year period. Once an average RAF is determined from this data, they calculate what number needs to be multiplied by that value to equal 1.0. This number is the ‘normalization ratio.’ The ratio is then divided by the patient’s raw RAF score to ‘normalize’ the average health status of a patient. Previously, this number was 1.127, meaning a patient with a total RAF of 3.2 would only be counted as if they had 2.84. The v28 2024 proposed normalization ratio is 1.015. Using the new ratio, the same total RAF of 3.2 will be calculated as 3.15. This means that every patient’s final RAF will be around 10% higher.
The last calculation that is performed takes place after normalization. This calculation is referred to as the “MA coding adjustment.” This is a percent decrease in RAF that is added to compensate for the difference in coding practices between risk adjustment coders and fee-for-service coders. This percentage has maintained at 5.9% for some time and is not proposed to change in v28.
The largest change between V24 and V28 is the splitting of the codes in V24 HCC 161 (Chronic Ulcer of Skin, Except Pressure) into different V28 HCCs based on ulcer depth. Another change is the addition of a new V28 HCC 387 (Pemphigus, Pemphigoid, and Other Specified Autoimmune Skin Disorders) with all new codes added to the model. Full details are as follows:
V24 HCC 157
–V24 HCC 157(Pressure Ulcer of Skin with Necrosis Through to Muscle, Tendon, or Bone) had all of its codes moved to V28 HCC 379 (Pressure Ulcer of Skin with Necrosis Through to Muscle, Tendon, or Bone) with an increase in RAF of 0.041.
–V24 HCC 158 (Pressure Ulcer of Skin with Full Thickness Skin Loss) had all of its codes moved to V28 HCC 381 (Pressure Ulcer of Skin with Full Thickness Skin Loss) with a decrease in RAF of 0.043.
–V24 HCC 159 (Pressure Ulcer of Skin with Partial Thickness Skin Loss) had all of its codes moved to V28 HCC 382 (Pressure Ulcer of Skin with Partial Thickness Skin Loss) with an increase in RAF of 0.249.
–V24 HCC 161 (Chronic Ulcer of Skin, Except Pressure) had two codes removed from the model, and the rest split between V28 HCC 380 (Chronic Ulcer of Skin, Except Pressure, Through to Bone or Muscle) and V28 HCC 383 (Chronic Ulcer of Skin, Except Pressure, Not Specified as Through to Bone or Muscle).
–Codes moving to V28 HCC 380 included the codes for non-pressure chronic ulcers with muscle or bone involvement. These codes had an increase in RAF of 0.670.
–Codes moving to V28 HCC 383 included codes for diabetes with ulcer, atherosclerosis of arteries and grafts with ulcer, and non-pressure chronic ulcers with skin or fat layer involvement. These codes received an increase in RAF of 0.127.
–The two codes that were removed were for drug or chemical-induced diabetes with ulcer.
V24 HCC 166 (Severe Head Injury) had all of its codes moved to V28 HCC 397 (Major Head Injury with Loss of Consciousness > 1 Hour) with a decrease in RAF of 0.195
–Codes moving to V28 HCC 389 include codes for the initial encounter of a major head injury where the loss of consciousness was less than 1 hr or unspecified. These codes had an increase in RAF of 0.118.
–Codes moving to V28 HCC 399 include codes for initial encounters for skull fractures in addition to major head injuries without loss of consciousness. These codes had an increase in RAF of 0.118.
–Codes that were removed from the model are the codes for sequela encounters for skull fractures and all types of severe or major head injuries.
–The code for initial encounter of traumatic Shock was moved to V28 HCC 2 (Septicemia, Sepsis, Systemic Inflammatory Response Syndrome/Shock) with a RAF increase of 0.387.
–Two codes used for the initial encounter for air or fat embolism were moved to V28 HCC 267 (Deep Vein Thrombosis and Pulmonary Embolism) with an increase in RAF of 0.182.
–Codes that were removed from the model include codes relating to amputation of toes, compartment syndrome, and unspecified early complications of trauma.
This grouping only involves one HCC in both V24 and V28 models. V24 HCC 189 (Amputation Status, Lower Limb/Amputation Complications) had most of its codes removed from the model with a small portion going to V28 HCC 409 (Amputation Status, Lower Limb/Amputation Complications). vf
–Codes moving to V28 HCC 409 includes codes for encounters for fitting for an artificial leg, the acquired absence of foot, ankle, and leg above and below the knee, complications of an amputation stump such as neuroma, infection, or necrosis, and codes for phantom limb syndrome.
–Codes moving to V28 HCC 49 had an increase in RAF of 0.004
This grouping has only 1 HCC in both V24 and V28 models but the content of those HCCs has changed. V24 HCC 186 (Major Organ Transplant or Replacement Status) had most of its codes moved to the grouping that each organ belongs to. The V24 HCC 454 (Stem Cell, Including Bone Marrow, Transplant Status/Complications) is used for non-solid organ transplants. Details are:
–Codes relating to pancreas transplants were moved to V28 HCC 35 (Pancreas Transplant Status) with an increase in RAF of 0.661.
–Codes involving liver transplants were moved to V28 HCC 62 (Liver Transplant Status/Complications) with a decrease in RAF of 0.308.
–Codes for intestine transplants were moved to V28 HCC 77 (Intestine Transplant Status/Complications) with an increase in RAF of 4.138.
–Codes for both the transplant of the heart alone or heart and lung together were moved to V28 HCC 221 (Heart Transplant Status/Complications) with an increase in RAF of 0.596.
–Codes for heart assist device and artificial heart were moved to V28 HCC 223 (Heart Assist Device/Artificial Heart) with an increase in RAF of 3.835
–Codes relating to lung transplants were moved to V28 HCC 276 (Lung Transplant Status/Complications) with an increase in RAF of 1.489.
–Codes for involving bone marrow or stem cell transplants moved to the new V28 HCC 454 with an increase in RAF of 0.215.
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