Risk Adjustment

Risk Adjustment Factor (RAF) Score(RAF)

Per-member coefficient that summarizes expected cost relative to an average Medicare Advantage enrollee.

Definition

The Risk Adjustment Factor (RAF) score is a per-member coefficient produced by the CMS Hierarchical Condition Category model. A patient's RAF is built from demographic factors (age, sex, Medicaid dual-eligible status, originally-disabled flag) plus the sum of the coefficients of all HCCs documented during the prior calendar year.

An average MA member has a RAF of 1.0 by construction; sicker members have higher RAFs and trigger higher capitation. CMS recalibrates the coefficients annually as part of the Rate Announcement.

RAF flows directly into payments: monthly capitation is approximately RAF x base rate, and is paid prospectively each month then trued up after CMS receives EDS / RAPS submissions for the year.

When to use

  • You need to estimate dollar impact of a coding decision, not just clinical accuracy.
  • You're modeling member panels and want to project annual revenue per cohort.
  • You're explaining to a clinical leader why specificity upgrades matter financially.

Try it in AutoICD API

Get RAF impact in audit response

curl -X POST https://autoicdapi.com/v1/audit \
  -H "Authorization: Bearer $AUTOICD_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "text": "Chronic systolic heart failure, NYHA III. CKD stage 3b. T2DM with peripheral neuropathy.",
    "submitted_codes": ["E11.9", "I50.9"],
    "capabilities": ["hcc"]
  }'
# response.totals.raf_upside lists the dollar value
# of every missed HCC, summed per year.

Language: bash. View full API docs · Get an API key.

Related concepts

Authoritative sources

More in Risk Adjustment