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How Data Aggregators Strengthen Risk Adjustment in Healthcare

05 Jan, 20243:30 PM

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How Data Aggregators Strengthen Risk Adjustment in Healthcare

In healthcare claims management, risk adjustment ensures that healthcare providers and plans are accurately compensated for the care they provide based on the health status of their patients. This process involves collecting, analyzing, and utilizing healthcare data to determine the level of risk associated with each patient's unique health conditions and comorbidities.

Accurate risk adjustment is also crucial for the following reasons:

  • Fair Compensation: It ensures that healthcare providers and plans are reimbursed appropriately for the complexity and costliness of caring for patients with higher risk profiles.
  • Risk Management: It helps healthcare providers and plans identify and manage patient risks effectively, leading to better patient outcomes and lower healthcare costs, in turn fortifying healthcare management.
  • Data-Driven Decision-Making: It provides valuable insights into patient populations, enabling informed decisions about resource allocation, treatment strategies, and population healthcare management.

In this blog post, we'll learn about the fundamental role of data aggregators in fortifying the accuracy and effectiveness of risk adjustment in healthcare. Mirra's Claims Adjudication solution is a claims processing system that collaborates with these aggregators plays a critical role in compiling and analyzing extensive healthcare data, ultimately contributing to optimizing patient care and healthcare provider reimbursement. Let's get started.

The Role of Data Aggregators in Risk Adjustment

Data aggregators play a central role in risk adjustment by collecting, consolidating, and organizing vast amounts of healthcare data from various sources, including electronic health records (EHRs), claims data, laboratory results, and patient-generated data. This comprehensive data repository is essential for accurate risk assessment and adjustment calculations.

Importance and Necessity of Data Aggregators in Risk Adjustment

Data aggregators are indispensable in risk adjustment for several reasons:

  • Data Collection Efficiency: They efficiently gather data from disparate sources, eliminating the burden on healthcare providers and plans.
  • Data Standardization and Harmonization: They standardize and harmonize data from different formats and systems, ensuring consistency and comparability.
  • Data Quality Assurance: They implement data quality measures to ensure the data's accuracy, completeness, and integrity.
key benefits

Understanding Third-Party Aggregators

Third-party aggregators are independent organizations that collect, process, and analyze healthcare data for healthcare providers, plans, and government agencies. They act as intermediaries, facilitating secure data sharing and providing a neutral platform for risk adjustment calculations.

How They Facilitate Secure Data Sharing

Third-party aggregators employ robust cybersecurity measures to protect sensitive patient data during transmission and storage. They adhere to strict data privacy regulations and implement granular access controls to ensure authorized users only access the data they need.

Overview of Key Third-Party Aggregators in Risk Adjustment

Several prominent third-party aggregators play crucial roles in risk adjustment:

  • Encounter Data Processing System (EDPS): EDPS is responsible for collecting and processing encounter data from healthcare providers, including dates of service, diagnoses, and procedures.
  • EDGE (External Data Gathering Environment): EDGE gathers external data from sources beyond encounters, such as Social Security Administration (SSA) records, Veterans Affairs (VA) data, and state Medicaid data.
  • MedicareFFS Data Warehouse: This data warehouse stores claims data for Medicare Fee-for- Service (FFS) patients, providing insights into their healthcare utilization and risk profiles.
  • Medicaid Data and Analytics System (MDAS): MDAS collects and analyzes Medicaid claims data, enabling risk adjustment for Medicaid plans and providers.
  • National Health Insurance Claims Database (NHICDB): NHICDB is a repository of claims data from Medicare Advantage (MA) plans, facilitating risk adjustment for MA plans and providers.
key benefits

Detailed Overview

  1. 1. Encounter Data Processing System (EDPS)

The Encounter Data Processing System (EDPS) is essential to manage and process encounter data primarily associated with Medicare Advantage plans. It is critical in determining payment rates and risk adjustment factors for healthcare providers and insurers participating in the Medicare Advantage program.

The EDPS collects and processes encounter data submitted by providers, which includes comprehensive information regarding patient visits, services rendered, diagnoses, and procedures performed. This data, once processed, is utilized by the Centers for Medicare & Medicaid Services (CMS) to calculate risk scores and adjust payments to Medicare Advantage organizations based on the health status of enrolled beneficiaries.

  1. 2. EDGE (External Data Gathering Environment) (EDGE)

The External Data Gathering Environment is an essential platform that facilitates submitting and exchanging data related to Medicare beneficiaries' risk adjustment. It ensures the accuracy and integrity of data submitted by various entities participating in Medicare Advantage and Medicare Part D programs.

EDGE is a centralized system where payers, including Medicare Advantage organizations, submit required data, such as enrollment, claims, and encounter data. This system helps standardize and validate the data, ensuring compliance with CMS guidelines and regulations ultimately supporting accurate risk adjustment and payment reconciliation.

  1. 3. MedicareFFS Data Warehouse

The Medicare Fee-For-Service (FFS) Data Warehouse is a comprehensive repository for Medicare FFS claims data. It aggregates, stores, and manages vast amounts of historical and current data on Medicare beneficiaries' claims for services and treatments. This warehouse facilitates advanced analytics, data mining, and reporting functionalities, aiding in risk adjustment modeling and analysis.

It supports healthcare organizations and researchers in understanding utilization patterns, patient demographics, healthcare trends, and cost projections, thereby contributing significantly to risk assessment and financial planning.

  1. 4. Medicaid Data and Analytics System (MDAS)

The Medicaid Data and Analytics System (MDAS) is a specialized platform for managing Medicaid-related data and analytics. It focuses on processing and analyzing Medicaid claims data to derive insights into patient populations, health outcomes, and cost trends within the Medicaid program.

MDAS supports risk adjustment efforts by enabling healthcare organizations to identify high-risk populations, manage chronic conditions effectively, and optimize care delivery strategies to improve patient outcomes while controlling costs. It provides valuable insights contributing to risk-scoring accuracy and financial planning in Medicaid-managed care.

  1. 5. National Health Insurance Claims Database (NHICDB)

The National Health Insurance Claims Database (NHICDB) is a centralized repository that aggregates and manages claims data from various nationwide health insurance plans. To create a comprehensive database, it consolidates claims information from diverse sources, including public and private insurance providers.

NHICDB supports risk adjustment activities by offering a broader view of healthcare utilization patterns, treatment effectiveness, cost variations, and health outcomes across insurance plans and provider networks. Analyzing this aggregated data assists in developing risk models, refining risk scores, and ensuring fairness and accuracy in risk-adjusted payments across insurers and healthcare providers.

Benefits of Mirra’s Data Aggregators on Risk Adjustment

Benefits of Mirra’s Data Aggregators on Risk Adjustment

  1. 1. Improved Patient Care Quality with Mirra

Data aggregators like those integrated into Mirra's Claims Adjudication solution streamline accessing and analyzing patient data. This comprehensive approach allows healthcare providers to better understand patient needs. Consequently, Mirra's solution empowers healthcare professionals to deliver personalized and effective care, enhancing patient outcomes. Accurate risk scoring facilitated by Mirra's system assists in identifying high-risk patients, enabling timely interventions and preventive care measures.

  1. 2. Enhanced Accuracy in Risk Scoring

Claims Adjudication solution, equipped with advanced data aggregation capabilities, consolidates data from diverse sources. This comprehensive data pool significantly enhances the accuracy of risk scoring, leading to more precise predictions of patient health risks. This accuracy empowers healthcare organizations to allocate resources efficiently and tailor interventions to individual patients, minimizing errors and unnecessary costs.

  1. 3. Financial Benefits for Healthcare Providers

Mirra's claims processing system is intricately linked to accurate risk adjustment, impacting the financial landscape of healthcare. By ensuring accurate risk assessment and data aggregation, Mirra's solution helps health plans compensate providers appropriately based on patients' health needs and treatment efficacy, promoting sustainability within the healthcare system.

The Bottom Line

In essence, Mirra Health Care's Claims Adjudication solution leverages data aggregators to revolutionize risk adjustment methodologies, delivering multiple benefits that significantly enhance patient care, improve financial outcomes, and enhance the accuracy of risk assessment within healthcare settings.

As healthcare strives for precision and efficiency, the need for reliable data aggregation tools remains constant. Choosing a comprehensive Claims Adjudication solution like Mirra's leverages these aggregators to optimize risk assessment, revolutionize care quality, and ensure sustainable financial health for healthcare organizations. Get in touch with our experts to schedule a demo.

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Reviews & Testimonials


NANCY GAREAUCEO of Ultimate Health Plans

"In 2021, Ultimate Health Plans (UHP) partnered with Mirra Health Care (Mirra) to develop a software platform to support processing Claims, Customer Service, Eligibility, Enrollment, Premium Billing, Encounter Processing and a Provider Portal for our Medicare Advantage Plans. Mirra collaborated well with our operations and compliance teams to successfully design and implement a system that was innovative, efficient, and compliant with all Medicare and Florida Medicaid guidelines and requirements all within the scope of our required timeline. We greatly benefitted from the Mirra Project Management Team’s regular communication with Stakeholders through monthly meetings and recurring weekly breakout-focused calls, which were geared towards troubleshooting and goal alignment. Mirra was able to quickly maneuver and adapt their systems to our needs, resulting in successful implementation and go-live. Mirra continues to support our compliant operation and growth in the ever-changing healthcare industry rapidly and effectively updating their systems with new Medicare and Florida Medicaid rates and guidelines to ensure seamless compliance and efficiency. I have absolutely no reservation in recommending their systems to any Payer searching for improvement in their operational efficiency."

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