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The HCC Operator · Issue 4 · November 2026

The 2027 Rate Announcement, in coding terms

Short answer: CMS kept the 2024 CMS-HCC model and shelved the 2023/2024 recalibration, so the divisor moved, not the coefficients [2]. Unlinked chart reviews stop counting for payment year 2027, audio-only visits are written out of the filter, and there is one list to build before December 31.
2024 CMS-HCC · unchangedUnlinked CRRs · out for PY2027Modifier 93 / FQ · outDec 31, 2026 · last DOS that counts

October 27, 20265 min readASP-RCM Solutions

Edition
Issue 4 · Nov 2026
Focus
2027 rates
Audience
HCC coders
Framework
2024 CMS-HCC
Effective date
Dec 31, 2026 last DOS
Length
5 min
+2.48%
Overall expected change in MA payment for CY 2027, per the CMS fact sheet [1]
1.079
Normalization factor for the 2024 CMS-HCC model in CY 2027 [2]
5.90%
MA coding pattern adjustment applied in CY 2027, the statutory minimum [2]
85%
Of 88.8 million unlinked chart review records for 2024 payment matched no encounter [2]
Story 1

The model did not change, the divisor did

CMS proposed a model on 2023 diagnoses and 2024 expenditures and did not finalize it [2]; 1.079 comes from a four-year regression on 2022 to 2025 FFS risk scores [1].

InputCY 2027What it means at the chart
Risk model2024 CMS-HCC model continuesSame 115 payment categories and hierarchies you coded to in 2026
Normalization factor1.079Every raw score is divided by 1.079 before payment
Coding pattern adjustment5.90 percentStatutory minimum, unchanged from 2026
Model revision and normalization-1.12 percent of paymentEntirely the normalization update, since the model did not change
Sources of diagnoses-1.53 percent of paymentUnlinked chart reviews and audio-only visits stop counting

CY 2027 payment effects, percent [1]

Nothing about mapping or specificity changes between 2026 and 2027 dates of service; the V28 coding reference stays current. Detail: recalibration insight.

+2.48%
Overall expected change
-1.12%
normalization
Model revision and normalization
-1.53%
diagnosis sources
Sources of diagnoses
-1.78%
pre-exception
Unlinked CRRs alonerisk scores
Net paymentReductionsComponent, before exception
Stories 2 and 3

Unlinked chart reviews and audio-only visits stop counting

Unlinked chart reviews

Story 2

  • From PY 2027, diagnoses on CRRs not linked to an encounter are excluded; one exception for enrollees who switched MA parent organization [2]
  • A condition that only reached CMS by chart review needs a face-to-face visit before December 31; nine moves in our unlinked chart review playbook

Audio-only visits

Story 3

  • Modifier 93 or FQ encounters are out when no other line is risk adjustment eligible; impact 0.00 percent because guidance never allowed them [2]
  • Suspect lists that count telephone follow-ups are counting visits that do not count

What still counts

The path

  • Interactive audio and video telehealth meets the face-to-face requirement [2]
  • Office or video visit, then an encounter data record or a linked CRR, then the 2027 score

Which 2026 encounters feed the 2027 score

  1. 1
    Office or video visitface to faceAcceptable provider, documented condition with specificity
  2. 2
    Encounter data recordor linked CRRUnlinked CRRs and audio-only lines do not enter this path for non-PACE plans
  3. 3
    Counts in the 2027 scoreby Dec 31, 2026Last 2026 date of service that feeds payment year 2027 [1]
  4. 4
    ResetJan 1Every chronic HCC starts again; the 2027 score is built only from 2026 encounters
Takeaway

Every chronic HCC resets on January 1. The members whose 2025 HCCs have no 2026 face-to-face documentation yet, and no visit on the calendar, are the only part of the 2027 score you can still move.

One thing worth 30 minutes

Do this week

Export 2025 HCCs by memberMatch them to 2026 encounters to date.
Flag open conditions with no scheduled 2026 visitBook the annual wellness visit or a chronic follow-up now; that count is your Q1 recapture plan.
Hand each clinician a promptThe condition and the specificity the category needs, nothing about scores; format in prospective vs retrospective suspecting.
Two new pages this monthThe 2027 unlinked chart review playbook and the RAF score explainer. Our HCC risk adjustment AI runs a 7,903-code V28 crosswalk audited at 1,500 of 1,500; a certified coder owns every code (risk adjustment coding services).
FAQ

Frequently asked questions

Did CMS adopt a new HCC model for 2027?

No. CMS proposed a model recalibrated on 2023 diagnoses and 2024 expenditures and did not finalize it. Non-PACE plans continue on the 2024 CMS-HCC model for CY 2027; PACE organizations use a 50/50 blend of the 2024 and 2017 models.

What is the 2027 normalization factor?

For the 2024 CMS-HCC model it is 1.079, calculated with a four-year simple linear regression on average FFS risk scores from 2022 through 2025. The ESRD models have their own factors, listed in the Rate Announcement.

Do chart reviews still matter in 2027?

Linked chart review records still count, and unlinked ones may still be submitted, but their diagnoses are not used in the payment year 2027 risk score unless the enrollee switched from a different MA parent organization the prior year.

Why does the chronic HCC list reset every January?

The CMS-HCC model is prospective: payment year 2027 risk scores are built only from diagnoses documented at eligible 2026 encounters. A condition documented in 2025 and not in 2026 contributes nothing to 2027.

Sources
  1. CMS fact sheet: 2027 Medicare Advantage and Part D Rate Announcement (April 6, 2026)
  2. CMS: Announcement of CY 2027 Medicare Advantage Capitation Rates and Part C and Part D Payment Policies (April 6, 2026)

Checked October 25, 2026. Rules change; confirm against the source before relying on them. CMS has said the RADV audit schedule is subject to change.

Related

Want the open-HCC list for your panel before December 31?

We match 2025 HCCs to 2026 encounters, hand your clinic the open list with a prompt per member, and a certified coder owns every code that follows.