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Risk Adjustment (RA) FAQ

Guidance for FAQ regarding Risk Adjustment Operations and Risk Scores

Issued by: Centers for Medicare & Medicaid Services (CMS)

Issue Date: December 10, 2014

Program Area: Risk Adjustment (RA)

Question: Do risk score calculations exclude pharmacy claims?

Answer: Pharmacy claims data will not be included in the calculation of risk scores. However, we note that issuers should not filter their own claims prior to submitting claims data to the External Data Gathering Environment (EDGE) Server. The risk adjustment filtering process will take place after all claims have been submitted to the EDGE Server. The calculations only include data from medical claims files, enrollment files and supplemental diagnosis files. Pharmacy claims are used for reinsurance. For additional information, please review the EDGE Server Business Rules (ESBR), located under the Distributed Data Collection (DDC) program area at https://www.REGTAP.info in the REGTAP Library.

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DISCLAIMER: The contents of this database lack the force and effect of law, except as authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically incorporated into a contract. The Department may not cite, use, or rely on any guidance that is not posted on the guidance repository, except to establish historical facts.