What does RAF stand for in the context of HCC?

• A. Revenue Allocation Formula
• B. Risk Adjustment Factor
• C. Resource Allocation Factor
• D. Risk Analysis Framework

Answer: (B)

In the HCC framework, RAF stands for Risk Adjustment Factor, the numeric score that translates a patient’s health conditions into expected healthcare costs. Each diagnosed condition has an HCC with a specific weight, and adding these weights together with relevant demographic factors yields the RAF. This score is used to adjust payments to plans or providers, reflecting the anticipated cost of care for that patient. The other options—Revenue Allocation Formula, Resource Allocation Factor, and Risk Analysis Framework—don't fit the established term and purpose in HCC, which is specifically about adjusting payments based on risk, not general revenue distribution or generic risk analysis.