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CMS-Hierarchical Condition Codes and Risk Adjustment CMS-Hierarchical Condition Codes and Risk Adjustment

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CMS-Hierarchical Condition Codes and Risk Adjustment - PPT Presentation

Alice B Torrez MHA CPC Educator Coding and Documentation Health Information Management University of New Mexico Hospital 2 View of Risk Adjustment Are my patients sicker These numbers are not right ID: 930822

hcc chronic risk disease chronic hcc disease risk acute cms diabetes patient failure documentation severe adjustment condition amp medical

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Slide1

CMS-Hierarchical Condition Codes and Risk Adjustment

Alice B. Torrez MHA, CPCEducator Coding and DocumentationHealth Information ManagementUniversity of New Mexico Hospital

Slide2

2

Slide3

View of Risk Adjustment

Are my patients

sicker?

These numbers are not right…

Provider

Payer

I documented the services…

What are HCCs?

Why can’t they document correctly?

Was that really a stroke in the office?

Diabetes does not cure itself

Diagnosis needs greater specificity

3

Proving medical necessity through increased specificity in documentation

Slide4

HCC SourcesHospital

InpatientException: Skilled nursing facilities and hospice facilities are considered non-covered facilities, so their diagnoses cannot influence HCC

calculations

H

ospital Outpatient

Exception

: Freestanding ambulatory surgery centers (ACS), home health, and

freestanding dialysis centers

are

not

acceptable sources for diagnoses

M.E.A.T. - clinical documentation Physician S

ettingsThis includes data collected from non-network as well as network physicians obtained in a face-to-face visitException for face-to-face: Pathology services (professional component only)

4

Slide5

CMS Hierarchical Condition Categories

Purpose/objectiveTo compensate health insurance plans (Medicare Advantage) for enrollees’ health level of riskRisk adjustment applied to quality outcome measures

Prospective in nature

Reviews health status in a base year to predict costs in the next year

Documentation translated into the appropriate ICD-10-CM diagnosis code

HCC, MCC, CC – how do they relate?

5

Slide6

Documentation Best Practice

Acuity of Disease – Mild, Moderate, Severe,

Acute, Chronic

Type and Cause of

the condition

As Indicated by “______” -

Supports Medical Necessity

Infectious Agent –

C

ausal Organism

Linking –

“Due to” “Secondary to” “Related to”

Anatomical Site or Region

Laterality –

Right, Left, BilateralEpisode of Care –

Initial, Subsequent, SequelaeDrug, Tobacco, ETOH –

Use, Abuse, or DependenceUnderlying Conditions

Disease Manifestations

27

Slide7

Hierarchical Condition CategoriesMedicare Risk Adjustment Factor (RAF) payment model introduced by Centers for Medicare and Medicaid (CMS) in

2004ICD-9 affected 3,6000 codesICD-10-CM > 9,000 codesThe goal is to pay Medicare Advantage Plans and Prescription Drug Plans

accurately and fairly based on SOI/Complexity of care needed ($)

Demographics

Health status

The Risk Adjustment model measures the disease burden

Provider Documentation

7

Slide8

Diagnosis Code ValueIn RAF diagnosis codes carry a risk adjustment value, dx are weighted much like DRGs

Similar to the concept of RVU assigned to CPT codesThe more severe or complex a diagnosis, the higher its value

If two or more diagnosis are documented from the same category, the diagnosis that is more severe or complex will trump any others

8

Slide9

Individual Risk Score Each member (Medicare Beneficiary) is assigned a Risk Adjustment Factor (RAF)Based on the specificity of the chronic condition

& based on the number of HCCs documentedThe highest scores reflect: The most complicated patients

Highest patient severity of illness

Highest consumption of resources

9

Slide10

Measuring Risk-Estimating CostsDemographicsAge

SexDisabilityLiving circumstancesDual eligibility Status (MC/Mcaid)HistoryClaims data (Parts A &B)

Reported illnesses

Reported diagnoses

=

Hierarchical Condition

Categories

10

Slide11

CMS Hierarchical Condition CategoriesLimited to

Diagnoses More than 9,000 codes - map

to

79 HCC (9000+ codes)

Mainly

chronic diseases that statistically support

increased

costs

related

to care HCCs reflect hierarchies among related disease categories

11

Slide12

Common Missing or Incomplete Diagnoses

Diabetes (manifestation, related to…)Depression (major, recurrent, episodic, in remission)Renal failure (manifestations), stage 4, stage 5

MI (old)

Angina pectoris (decubitus, prinzmetal-with documented spasm)

Cancers coded as “history of” rather than active

Drug or alcohol dependence

Malnutrition (mild, moderate, severe, protein calorie)

Atrial fibrillation (chronic, paroxysmal, persistent, typical, atypical)

Amputations (current, acquired, history of)

12

Slide13

CMS Chronic Conditions (79)13

HCC1 = HIV/AIDS

HCC82 = Respirator Dependence/Tracheostomy

HCC2 = Septicemia, Sepsis, Systemic Inflammatory Response Syndrome/Shock

HCC83 =

Respiratory

Arrest

HCC6 = Opportunistic Infections

HCC84 = Cardio-Respiratory Failure and Shock

HCC8 =

Metastatic Cancer and Acute Leukemia

HCC85 = Congestive Heart Failure

HCC9 = Lung and Other Severe Cancers

HCC86 = Acute Myocardial Infarction

HCC10 = Lymphoma and Other Cancers

HCC87 = Unstable Angina and Other Acute Ischemic Heart Disease

HCC11 = Colorectal, Bladder, and Other Cancers

HCC88 = Angina Pectoris

HCC12 = Breast, Prostate, and Other Cancers and Tumors

HCC96 = Specified Heart Arrhythmias

HCC17 = Diabetes with Acute Complications

HCC99 = Cerebral Hemorrhage

HCC18 = Diabetes with Chronic Complications

HCC100 = Ischemic or Unspecified Stroke

HCC19 = Diabetes without Complication

HCC103 = Hemiplegia/Hemiparesis

HCC21 = Protein-Calorie Malnutrition

HCC104 = Monoplegia, Other Paralytic Syndromes

HCC22 = Morbid Obesity

HCC106 = Atherosclerosis of the Extremities with Ulceration or Gangrene

HCC23 = Other Significant Endocrine and Metabolic DisordersHCC107 = Vascular Disease with Complications

HCC27 = End-Stage Liver Disease

HCC108 = Vascular Disease

HCC28 = Cirrhosis of Liver

HCC110 = Cystic Fibrosis

HCC29 = Chronic Hepatitis

HCC111 = Chronic Obstructive Pulmonary Disease

HCC33 = Intestinal Obstruction/Perforation

HCC112 = Fibrosis of Lung and Other Chronic Lung Disorders

HCC34 = Chronic Pancreatitis

HCC114 = Aspiration and Specified Bacterial Pneumonias

HCC35 = Inflammatory Bowel Disease

HCC115 = Pneumococcal Pneumonia, Empyema, Lung Abscess

HCC39 = Bone/Joint/Muscle Infections/Necrosis

HCC122 = Proliferative Diabetic Retinopathy and Vitreous Hemorrhage

Slide14

CMS Chronic Conditions (79)14

HCC40 = Rheumatoid Arthritis and Inflammatory Connective Tissue Disease

HCC124 = Exudative Macular Degeneration

HCC46 = Severe Hematological Disorders

HCC134 = Dialysis Status

HCC47 = Disorders of Immunity

HCC135 = Acute Renal Failure

HCC48 = Coagulation Defects and Other Specified Hematological Disorders

HCC136 = Chronic Kidney Disease, Stage 5

HCC54 = Drug/Alcohol Psychosis

HCC137 = Chronic Kidney Disease, Severe (Stage 4)

HCC55 = Drug/Alcohol Dependence

HCC157 = Pressure Ulcer of Skin with Necrosis Through to Muscle, Tendon, or Bone

HCC57 = Schizophrenia

HCC158 = Pressure Ulcer of Skin with Full Thickness Skin Loss

HCC58 = Major Depressive, Bipolar, and Paranoid Disorders

HCC161 = Chronic Ulcer of Skin, Except Pressure

HCC70 = Quadriplegia

HCC162 = Severe Skin Burn or Condition

HCC71 = Paraplegia

HCC166 = Severe Head Injury

HCC72 = Spinal Cord Disorders/Injuries

HCC167 = Major Head Injury

HCC73 = Amyotrophic Lateral Sclerosis and Other Motor Neuron Disease

HCC169 = Vertebral Fractures without Spinal Cord Injury

HCC74 = Cerebral Palsy

HCC170 = Hip Fracture/Dislocation

HCC75 = Myasthenia Gravis/Myoneural Disorders, Inflammatory and Toxic Neuropathy

HCC173 = Traumatic Amputations and Complications

HCC76 = Muscular Dystrophy

HCC176 = Complications of Specified Implanted Device or Graft

HCC77 = Multiple Sclerosis

HCC186 = Major Organ Transplant or Replacement Status

HCC78 = Parkinson's and Huntington's Diseases

HCC188 = Artificial Openings for Feeding or Elimination

HCC79 = Seizure Disorders and Convulsions

HCC189 = Amputation Status, Lower Limb/Amputation Complications

HCC80 = Coma, Brain Compression/Anoxic Damage

 

https://www.cms.gov/Medicare/Health-Plans/MedicareAdvtgSpecRateStats/Risk-Adjustors-Items/Risk2014.html?DLPage=1&DLEntries=10&DLSort=0&DLSortDir=descending

Slide15

15

Slide16

The Process16

Care is delivered to the member

At

a

face-to-face encounter

Care and diagnosis are documented

In the chart/progress note

ICD-10-CM codes are submitted

based on f-t-f encounter/clinical findings

HCC code data is submitted to CMS

CMS calculates MA Risk Adjustment Score

Plan & providers can deliver better care and better & reimbursement is RAF is accurate

CMS determines

cost of care based on RAF and provides capitation revenue to MA Plan

Slide17

How the Hierarchies Function

CategoryIncluded HCCs

Community, Non-Dual, Aged Factor

Diabetes

HCC 17 Diabetes with acute

complications

0.6022

HCC 18 Diabetes with

chronic complications

0.3542

HCC 19 Diabetes w/o complications

0.3153

17

Slide18

Which Patient Demonstrates Higher Risk?Patient A

85 year old, femaleLives in her homeNon-smoker, no alcohol, participates in Zumba 2x week, and attends church activitiesDiagnoses:Osteoporosis

Hypothyroidism

Dislocated right hip from Zumba class

Medications

Multivitamins, calcium

Levothyroxine

Patient B

77 year old, male

Lives in his home

H/O ETOH dependence, 50+ years smoker, sedentary lifestyleDiagnoses: Chronic respiratory failureCKD stage 3

Liver cirrhosisCOPDDiabetic foot ulcer, right heelMedications

Too many to list18

Slide19

Disease InteractionsSome diseases “interact” with each other, causing an increase in care management and a corresponding additional risk factor.

As an example:Congestive Heart Failure combined with DiabetesWhen these two diagnoses are reported on the same patient, an additional risk factor is recorded.

2017 Ratebook Risk Factors

CHF HCC 85 .323

Diabetes, chronic complications HCC 18 .318

Disease Interaction of CHF and Diabetes

.

154

19

Slide20

RAF Score Same Pt. 2017, 201820

$2,016.00 per month$24,192.00 annually

$1,170.40 per month

$14,044.80 Annually

Slide21

High Level Example of a CMS Payment to a Plan

No Diagnoses Reported

Some Diagnoses Reported

All Diagnoses Reported

68 year old male

.300

68 year old male

.300

68 year old male

.300

Dual eligible

.192

Dual eligible

.192

Dual eligible.192Type 2 DM, not documentedType 2 DM, no complications

.097Type 2 DM with other skin ulcer.346

Congestive Heart Failure, not documented

Congestive Heart Failure, not documentedCongestive Heart Failure, coded

.355

Disease interaction (DM+CHF)

.205

Risk Adjustment Factor

.492.589

1.398

PMPM base payment$814

PMPM base payment

$814

PMPM base payment

$814PMPM for this patient

$401

PMPM for this patient$479

PMPM for this patient$1,138

Annual payment

$4,806

Annual

payment

$5,753

Annual payment

$13,656

21

PMPM = per member per month

Slide22

Risk Adjustment Opportunities – Greater Specificity is Needed in DocumentationNeoplasms:

Lack of specificityStatus of conditionResolved/inactiveActiveType of CancerLocation: organPrimary and /or metastatic

Lymphoma, other

Acuity of Cancer

Acute/chronic

In remission

22

Slide23

HCC 9 - DetailLung & Other Severe Cancers

Malignant NeoplasmUpper GI tractLiver and intrahepatic bile ductsGallbladder

Biliary tract

Pancreas

Trachea

Bronchus and lung

Pleura

Mesothelioma

Pleura

Peritoneum

Pericardia

Other & unspecified

Multiple Myeloma

Leukemia (non-acute)Myeloid Sarcoma

23

Slide24

24

Slide25

HCC 21 Protein Calorie Malnutrition

The Term Malnutrition carries no HCC WeightDocument signs, symptoms, cause, and typeNutritional marasmus

Marasmic kwashiorkor

(Not usually likely in U.S.)

Unspecified severe PCM

Mild

PCM

Moderate

PCM

Under development

following PCM

Sequelae

of PCMCachexia or wasting syndrome

25

Slide26

Inclusion TermsUnder Development following PCMNutritional short stature

Nutritional stuntingPhysical retardation due to malnutritionUnspecified PCMMalnutrition NOSProtein-calorie imbalance, NOS

26

Slide27

Malnutrition TipsWhen documenting malnutrition be sure under the general appearance section of the ROS the patient is not described as “within normal limits” or “well appearing”

Be sure the documentation is clearly treating malnutrition and not preventing malnutritionIn elderly persons, an indicative sign of malnutrition is delayed healing and an increased presence of decubitus ulcers of stage III or higher

27

Slide28

Malnutrition

Diseases that contribute to malnutritionCystic fibrosisChronic renal failure

Childhood malignancies

Congenital disease

Neuromuscular

diseases

Other

Contributors

Malignancy, chemotherapy

GI disorders

GastritisObstructionCrohn’s diseaseMalabsorbtionDiverticulitis

Other Contributors

S/P major bowel surgeryProlonged NPO status beyond 72 hoursSevere sepsis, alcoholismESRDSuppressed appetiteDysphasia

DepressionImmunocompromised (leukopenic state) & anemiaHyper-metabolic state (COPD, sepsis, Cancer…)CVA patient

28

Slide29

Psychiatric Conditions HCC 57

SchizophreniaParanoidCatatonicUndifferentiated

Residual

Schizophreniform disorders

Other

29

Slide30

Psychiatric Conditions HCC 58Major depressionBipolar

Paranoid DisordersDelusional disordersManic episodeWith and without psychotic symptomsFull or partial remissionBipolarDepressed, manic, or mixed

With or without psychotic feature

Full or partial remission

30

Slide31

Psychiatric Conditions Major Depressive Disorder –

Single EpisodeSignificant weight loss (- ± 5% body weight within a monthInsomnia or hypersomniaPsychomotor agitation

Fatigue or energy loss nearly every day

Feelings of worthlessness, inappropriate guild

Diminished ability to concentrate or focus

Recurrent thoughts of death/suicide

Major Depressive Disorder –

Recurrent

The course of illness tends to vary

Bouts of depression separated by years between episodes in which there are no symptoms

Individuals may have more occurrences as they age

Specify:

Mild, moderate, severe

With or without psychosisPartial/full remission31

Slide32

The Annual Wellnes Visit

Is an opportune time to assess all past medical conditionInitial Preventive Physical Exam (IPPE)Annual Wellness Visit (AWV)

The provider reviews past medical history to compile a list of all chronic health condition (tagging from a previous document?)

Add all acute problems that require continued management

Assessment and management of each health problem is documented in the medical record

Specificity

Link underlying disease, manifestations responsible for a

32

Slide33

M.E.A.T.33

M.E.A.T. can be found in any section of the physician/out patient recordUse coding judgment to determine acceptable sources of support within each document

M

onitor (e.g., ordered lab s or diagnostic radiology)

E

valuat

(e.g., review lab or x-ray results, physical examination)

A

ddress/assess (e.g., condition described as “stable” or “improving

T

reat (e.g., patient referred to see a specialist, prescribe or refill meds, or decision for surgery

Slide34

Medical Record DocumentationAll chronic conditions must be assessed and reported annually

CHF, Diabetes, COPDCo-existing acute conditionsProtein calorie malnutritionActive status conditionsAmputation, HIV, dialysis

Pertinent past conditions

OLD MI and other underlying medical problems

Medications that may indicate other conditions are controlled

Meds for hypertension

34

Slide35

Medical Record DocumentationSpecific rather than general informationMajor depression rather than depression, if applicableCausality

Diabetic neuropathy, not diabetes and neuropathyHighest level of specificityDiabetes Type 2 with renal manifestationInclude signs/symptomsAbnormal test resultsOther reason for the visitSupport documentation of conditions

Stable, controlled, uncontrolled, poorly controlled, improving, worsening

35

Slide36

Medical Record Documentation“

History of” - the patient no longer has the conditionFrequent documentation error regarding use of “History Of” Documenting a

past condition

as active

Documenting

“history of”

when a condition is still active;

Exception: It is appropriate to document “history of” when documenting some status conditions (i.e. amputation)

Examples:

36

Incorrect Documentation

Correct Documentation

H/O CHF, Pt. is on Lasix

Compensated CHF, stable on LasixH/O Angina, pt. is on nitroquick

Angina, stable on nitroH/O COPD, pt. is on AdvairCOPD controlled with Advair

Slide37

Documentation Tips37

Language Samples

Examples of Acceptable Language

Diabetes type 2, stable, well controlled on meds

COPD, stable on Advair

Assessment

Plan

Stable

Improved

Tolerating Meds

DeterioratingAsymptomaticUncontrolled

AsymptomaticMonitorD/C MedsContinue current MedsRefuses treatmentReferExercise

Control diet

Slide38

CMS Risk Adjustment Data Validation AuditsWhat are CMS Risk Adjustment Data Validation (RADV) Audits?

Applicable to Medicare Advantage PlansCMS annual audits that ensure the integrity and accuracy of risk-adjusted payment

An audit that verifies diagnosis codes submitted by MA plans are appropriately supported by medical record documentation

MA plans may be selected for RADV Audits annually, and if selected:

Plans must submit medical records to validate reported diagnoses

38

Slide39

39

Slide40

Last but Not Least…40

MCC, CC, & HCC

Slide41

41

MCC/CC (bold = MCC)HCC

SOI

ICD-10

Acute coronary insufficiency/occlusion

Y

2

I248, 1240

Acute coronary syndrome (ACS)

Y

2

I249

Acute Kidney Injury (AKI)Y3

N179Acute Tubular NecrosisY

4N170Anemia, acute blood loss2D62Angina, unstable

Y2I200Atelectasis (collapsed

lung)1J9811

Atrial fibrillation, persistentY

2I481Atrial

flutterY

2I4892Anxiety, alcohol induced

Y1

F10180Bacteremia

3R7881

Bleeding, GI2

K922Brain compression/herniation

Y4G935

Brain death

4G9382Cachexia (cachectic)Y

2R64Cardiac arrest (dc’d alive)

Y4I469CKD Stage 4/5Y

2N184/5Coma

Y

4

R4020

COPD, acute exacerbation

Y

2

J441

Deep vein

thrombosis

(needs greater specificity: acute, chronic embolism and thrombosis of inferior, superior vena cava, or other thoracic veins)

3

I8291

Depression, major, mild, moderate, recurrent

Y

2

F320,

F321, F339

Slide42

42

MCC/CC (bold = MCC)HCC

SOI

ICD-10

Diabetes, hyperosmolar (Type II)

Y

4

E1100

Diabetes with ketoacidosis (Type

II)

Y

3

E11641Encephalopathy, metabolic

3G9341

Encephalopathy, toxic3G92ESRDY

2N186Heart failure, diastolic (heart failure, unspecified, is also an HCC)

Y2I5030

Heart failure: leftY

21501

Heart failure, systolicY

2I5020

Heart failure, systolic, acute

Y3

I5021Malnutrition: mild

Y2

E441Malnutrition: moderate

Y3E440, E46

Malnutrition: severeY

4E41, E43Obesity, hypoventilation syndrome, or morbid obesity due to excessive calories (BMI is an HCC also)

Y2E662

Pancreatitis, chronicY2K861

ParaplegiaY

2

G8220

Quadriplegia

Y

3

G8250

Schizophrenia, simple, paranoid, residual

Y

2

F2089

Transplant

status, kidney

Y

2

Z940

Transplant status, heart, lung, or liver

Y

3

Z941/2/4

Slide43

Questions

43

Slide44

ReferencesThe ABCs of the Initial Preventive Physical Examination:

https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNProducts/downloads/MPS_QRI_IPPE001a.pdfThe ABCs of Annual Wellness Visits: https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNProducts/downloads/AWV_chart_ICN905706.pdf

How to Properly Document Wellness Visits and physicials:

http://medicaleconomics.modernmedicine.com/medical-economics/content/tags/coding/how-properly-document-wellness-visits-and-physicals

https://www.cms.gov/Medicare/Prevention/PrevntionGenInfo/medicare-preventive-services/MPS-QuickReferenceChart-1.html

Physicians Practice: When a reventive visit uncovers a new patient complaint:

http://www.physicianspractice.com/blog/when-preventive-visit-uncovers-new-patient-complaint

44

Slide45

Alice Torrez, MHA, CPCEducator of Coding & Documentation

abtorrez@salud.unm.edu272-389145