June 14, 2023 | Karla VonEschen, MS, CPC, CPMA
For the past year, I’ve been immersed in the world of hierarchical condition category (HCC) coding. It's been a great opportunity to dig deeper into everything related to risk adjustment (RA) and is another skill I’ve added to my knowledge base. Just as I was getting used to the 2020 V24 risk adjustment model, the Centers for Medicare & Medicaid Services (CMS) made some much-needed updates and released V28 2024. Version 28 was finalized in April 2023 and will apply to 2023 dates of service.
Health care organizations will want to pay close attention to the 2024 risk adjustment updates. Before implementing the 2024 changes, the 2020 risk adjustment model used diagnosis codes from 2014 and costs from 2015. This means ICD-9-CM codes continued to be used, and many of these codes are no longer correctly mapped to an HCC code. Not only were outdated diagnosis codes used, but certain diseases may no longer have the same impact on patients, and emerging diseases must be configured into the cost of care. CMS has indicated V28 changes will be phased in over the next three years.
Several changes to the 2024 risk adjustment model (RA model) are worth noting. The disease categories and conditions most impacted by the changes include vascular, metabolic, heart, blood, amputation, neurological, diabetes, kidney, psychiatric and musculoskeletal. Below are highlights of the changes made in the new model:
Diabetes
Psychiatric
Heart disease
Musculoskeletal
In total, more than 2,000 codes were removed from the current model because they no longer mapped to an HCC.
Model V24 (PY 2020) | Model V28 (PY 2024) | |
Code Set Used | ICD-9-CM | ICD-10-CM |
Data Years Utilized | 2014-2015 | 2018-2019 |
Number of HCCs | 9,797 | 7,770 |
ICD HCCs Added | 209 | |
ICD HCCs Deleted | 2,236 |
Understanding the recent changes and communicating effectively with your coders and physicians is critical to successfully documenting, coding and paying for risk adjustment. Now is an ideal time to review, and to educate coders, CDI teams and physicians on the recently enacted updates.
Karla VonEschen is a coding analyst at Solventum.