Fierce Healthcare September 15, 2020
Paige Minemyer

The Centers for Medicare & Medicaid Services said it plans to begin in 2022 using solely encounter data to calculate risk adjustment in Medicare Advantage and Part D.

CMS released Part I of its annual Advance Notice on Monday evening, and the agency said it intends to have both parts finalized no later than April 5.

In the regulation, CMS said it plans to fully phase in the CMS-HCC model for risk adjustment as outlined in the 21st Century Cures Act. Harnessing that model in full means that for 2022, a plan’s risk scores would be calculated completely using encounter data, which is a controversial measure among insurers.

For 2021, CMS deployed a hybrid approach for risk adjustment, in which...