Department of Quantitative Health Sciences
Medical Subject Headings
Adolescent; Adult; Aged; Aged, 80 and over; *Capitation Fee; Centers for Medicare and Medicaid Services (U.S.); Child; Child, Preschool; Female; Humans; Infant; Infant, Newborn; International Classification of Diseases; Male; Medicare Part C; Middle Aged; Models, Organizational; *Risk Adjustment; United States
Biostatistics | Epidemiology | Health Services Research
This article describes the CMS hierarchical condition categories (HCC) model implemented in 2004 to adjust Medicare capitation payments to private health care plans for the health expenditure risk of their enrollees. We explain the model's principles, elements, organization, calibration, and performance. Modifications to reduce plan data reporting burden and adaptations for disabled, institutionalized, newly enrolled, and secondary payer subpopulations are discussed.
Rights and Permissions
Citation: Health Care Financ Rev. 2004 Summer;25(4):119-41. Link to article on publisher's site
Pope, Gregory C.; Kautter, John; Ellis, Randall P.; Ash, Arlene S.; Ayanian, John Z.; iezzoni, Lisa I.; Ingber, Melvin J.; Levy, Jesse M.; and Robst, John, "Risk adjustment of Medicare capitation payments using the CMS-HCC model" (2004). Quantitative Health Sciences Publications and Presentations. 723.