What is HCC coding?

HCC coding stands for Hierarchical Condition Category coding, which is a risk adjustment model used primarily by Medicare to estimate future healthcare costs for patients. HCC coders review medical records to identify and assign the appropriate ICD-10 codes that capture a patient's diagnoses and health conditions. Accurate HCC coding ensures proper reimbursement for healthcare providers and helps reflect the complexity of a patient’s health status. This process is essential for risk adjustment in value-based care models.