Wednesday, September 6, 2017

CMS RAPS to EDPS Transition

Overview of RAPS (Risk Adjustment Processing System):
Initially, Medicare Advantage Organizations (MAOs) have been responsible for validating, filtering and compiling the diagnosis codes when creating RAPS files per CMS guidelines. Although CMS reviews the RAPS submissions for duplicates and errors, it does not verify the validity of the MAO’s filtering logic or the resulting list of diagnosis codes at the time of submission. Instead, CMS relies on Risk Adjustment Data Validation (RADV) audits to ensure that the submitted diagnosis codes are supported by patient charts.
Part of this audit, CMS will send plans a sample of previously submitted claims and plans must provide medical chart documentation to justify the submissions. If they cannot, plans have to pay major penalties. These penalties would be attributable to all plan revenue based on the percentage of failure in the sample.

RAPS to EDPS:
There is a significant change in the RAPS process. Part of EDPS (Encounter Data Processing System), all unfiltered/unsent encounter details will be submitted directly to CMS. CMS then applies the filtering logic to extract the valid diagnosis codes from the data. It also checks for the procedure codes (HCPCS), all these will be used to provide a more accurate way for risk score calculation.

Now it is MAOs responsibility that data submitted through EDPS are complete and accurate so that all diagnosis codes reported are being accepted for risk adjustment by CMS. Otherwise, MAOs may see lower risk scores and lower risk adjusted revenue compared to RAPS.

EDPS Incremental Transition Plan:
CMS outlined incremental RAPS to EDPS transition plan, which effects from 2016. Beginning in payment year 2016, CMS will change the calculation for risk adjusted payments to MAOs by using encounter data submitted by MAOs along with RAPS and the payment calculation percentages (EDPS/RAPS) will be as follows:
        10/90 percent split in 2016
        25/75 percent split in 2017
        50/50 percent split in 2018
        75/25 percent split in 2019
        100 percent EDPS implementation in 2020

Challenges
EDPS system is complicated than RAPS, EDPS needs all the diagnosis data which were not mandatory in case of RAPS and it requires significantly more edits and CMS applies their own filter logic which makes it difficult for the payer to get their claims accepted for processing.

Obviously, the first goal for a payer is getting the claims accepted by CMS, so they have a record of the claim transaction. To do this, health plan requires a system to perform,
        Processing of all edits published by CMS, so the organization can pre-filter and identify whether CMS will accept the submission before it is submitted.
        MAOs rely on claims data for submission of both RAPS and EDPS as every claim includes all possible diagnosis codes for the encounter. There are cases, risk scores are artificially decreased resulting from provider billing practices.
        Solution to submit all variations of encounters including: standard, capitated, void and adjusted, chart linked and unlinked, and deleted, as well as encounters from atypical providers
        Claims which are denied by CMS will not be included in the risk score. Organizations to prevent denials by enabling them to correct inaccurate or incomplete claims before they’re sent to payers.
        As encounters data will be sent in HIPAA ANSI X12 5010 EDI 837 format in EDPS rather than the RAPS format. This will increase the complexity as the ANSI X12 contains more than 1700 fields which need to be sent for a single transaction.
        Process CMS responses to claims transactions (TA1, 999, 277CA, MA-002, & MA-004)

Another biggest challenge for health plans is to reconcile RAPS submissions with EDPS against CMS processed responses to make sure all RAPS and EDPS diagnosis codes and statuses are same and to identify missing HCC (Hierarchical Category Condition) codes, also to correct inaccuracies in both the submissions. To improve CMS acceptance rate for RAPS and EDPS, health plans would need a solution to,
        Streamline the reconciliation of RAPS with EDPS to identify missing HCCs
        Solution to identify and prioritize all errors with the highest HCC impact
        Reporting of EDPS and RAPS outcomes to enable HCC reconciliation between both submissions
        Member level dashboards to show RAPS and EDPS diagnosis codes and statuses
        Workflow system to – Prioritize submission errors and assign error work queues by priority, with an intuitive auto-assignment

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