Certified Risk Adjustment Coder (CRC) Complete Practice Exam 2026

The normalization factor for risk adjustment is adjusted yearly. This annual adjustment is essential for reflecting changes in the population's health status and demographic characteristics over time. By making these yearly adjustments, healthcare programs can ensure that the risk adjustment calculations remain accurate and relevant, helping to maintain equity in payments and resource allocation in healthcare systems.

Regular updates to this factor allow for the incorporation of new data trends, medical advancements, and shifts in patient populations. This approach ensures that the risk adjustment model effectively accounts for the complexity and variability of patient care needs, leading to more effective management of healthcare resources and improved patient care outcomes.