What Is HCC Medical Abbreviation (Hierarchical Condition Category)?

The HCC medical abbreviation is widely searched, but its meaning shifts depending on context. In coding, it refers to Hierarchical Condition Category (HCC coding), a core part of Medicare Advantage risk scoring.

Clinically, it refers to Hepatocellular Carcinoma, a common form of liver cancer. This article explains how providers, coders, and billers use the term, and where misunderstandings can lead to claim delays or underpayments.

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Understanding HCC Medical Abbreviation in Healthcare

The HCC Medical Abbreviation stands for Hierarchical Condition Category, a risk adjustment system developed by CMS to classify patient diagnoses based on severity and expected healthcare costs. It maps ICD-10 diagnosis codes into risk categories that help calculate a patient’s Risk Adjustment Factor (RAF) score.

The CMS HCC model groups over 9,700 ICD-10 codes into approximately 115 HCC categories, including chronic conditions like diabetes with complications (HCC 18) and heart failure (HCC 85). The HCC coding system ensures accurate healthcare payment adjustment by aligning reimbursement with patient health risk and medical complexity.

What-is-HCC-Medical-Abbreviation

Step-by-Step Process of Hierarchical Condition Categories

The HCC risk adjustment workflow follows a defined clinical and coding process that converts diagnoses into risk scores and reimbursement values.

Step 1: Clinical Documentation and Diagnosis Capture

Providers document patient conditions during encounters using ICD-10 codes. Accurate HCC documentation must include evaluation, treatment, and management details to support compliance and reimbursement accuracy.

Example:

  • E11.22 – Type 2 diabetes with chronic kidney disease

  • I50.9 – Heart failure, unspecified

These codes are part of the standardized diagnosis coding system used globally in risk adjustment models.

Step 2: Mapping ICD-10 Codes to HCC Categories

Each diagnosis is mapped to specific HCC diagnosis codes under CMS guidelines to ensure accurate patient risk representation. This mapping determines whether a condition qualifies for risk adjustment & contributes to the patient’s RAF score and reimbursement.

Example mappings:

ICD-10 Code Condition HCC Category
I50.9 Congestive Heart Failure HCC 85
E11.22 Diabetes with CKD HCC 18
N18.4 CKD Stage 4 HCC 136

CMS maintains these mappings annually to ensure accurate cost prediction and reimbursement.

Step 3: Hierarchy and Severity Assignment

The system uses hierarchy logic. If multiple related diagnoses exist, only the most severe is counted within the defined HCC categories healthcare framework.

Example:

  • E11.9 → HCC 19 (Diabetes without complication)

  • E11.22 → HCC 18 (Diabetes with complication)

Only HCC 18 is counted because it represents higher severity and increased risk.

Step 4: Risk Score Calculation and Payment Adjustment

CMS calculates a RAF score based on:

  • Diagnosis categories

  • Age group (example: 70–74 years)

  • Gender

  • Medicaid eligibility

This supports accurate Medicare risk adjustment and ensures fair reimbursement.

The HCC Medical Abbreviation framework plays a critical role in converting clinical data into financial risk scores and reimbursement values.

HCC Codes List With Examples

HCC codes classify chronic and high-risk conditions based on ICD-10 diagnosis codes. They are used in Medicare risk adjustment to reflect patient severity, calculate RAF scores, and ensure appropriate reimbursement.

Common HCC Codes List in Medical Coding

Below are commonly used HCC codes in clinical practice and hcc medical coding workflows:

  1. HCC 18 – Diabetes with complications (ICD-10: E11.22)
    Includes diabetes with CKD, neuropathy, or retinopathy.
    Example: Type 2 diabetes with CKD Stage 3 documented as diabetic nephropathy and managed with medication and nephrology follow-up.

  2. HCC 85 – Congestive Heart Failure (ICD-10: I50.9, I50.22)
    Chronic heart failure requiring continuous treatment and monitoring.
    Example: Patient with systolic heart failure (EF 35%) taking Lasix and under cardiology care.

  3. HCC 111 – Chronic Obstructive Pulmonary Disease (ICD-10: J44.9)
    Chronic lung disease requiring long-term respiratory management.
    Example: COPD patient using inhalers like Albuterol and Spiriva with pulmonary follow-up.

  4. HCC 136 – Chronic Kidney Disease Stage 4 (ICD-10: N18.4)
    Severe kidney damage requiring specialist monitoring.
    Example: CKD Stage 4 patient with GFR 24 mL/min under nephrologist care.

  5. HCC 12 – Breast Cancer (ICD-10: C50.919)
    Includes active breast cancer under treatment.
    Example: Patient receiving chemotherapy for invasive breast cancer.

  6. HCC 59 – Major Depressive Disorder (ICD-10: F33.1, F33.2)
    Moderate or severe depression requiring active treatment.
    Example: Patient treated with antidepressants and psychiatric follow-up.

  7. HCC 108 – Vascular Disease (ICD-10: I73.9)
    Includes peripheral vascular disease affecting circulation.
    Example: Peripheral artery disease treated with antiplatelet therapy.

  8. HCC 134 – Chronic Kidney Disease Stage 5 (ICD-10: N18.5)
    Severe kidney failure requiring dialysis preparation.
    Example: CKD Stage 5 patient scheduled for dialysis.

These codes represent high-risk conditions that require continuous monitoring and complete documentation to ensure proper risk adjustment and reimbursement. For more details on how Hierarchical Condition Categories work in risk adjustment, refer to this HCC coding and risk adjustment guide.

Top HCC Codes Used in Medical Coding

These HCC codes have a major impact on risk scores and reimbursement in risk adjustment programs. The most important and frequently reported HCC codes include:

  • HCC 85 – Heart Failure (ICD-10: I50.9, I50.22)

  • HCC 18 – Diabetes with Chronic Complications (ICD-10: E11.22, E11.40)

  • HCC 111 – Chronic Obstructive Pulmonary Disease (ICD-10: J44.9)

  • HCC 138 – Chronic Kidney Disease Stage 3 (ICD-10: N18.3)

  • HCC 136 – Chronic Kidney Disease Stage 4 (ICD-10: N18.4)

  • HCC 134 – Chronic Kidney Disease Stage 5 (ICD-10: N18.5)

  • HCC 59 – Major Depressive Disorder (ICD-10: F33.1, F33.2)

  • HCC 108 – Vascular Disease (ICD-10: I73.9)

  • HCC 12 – Breast Cancer (ICD-10: C50.919)

  • HCC 19 – Diabetes without Complications (ICD-10: E11.9)

These diagnoses require annual chronic condition reporting to remain valid in risk calculations. Healthcare providers must document these conditions at least once every 365 days for inclusion in RAF scoring.

HCC Diagnosis Category List in Healthcare Billing

HCC diagnosis categories group chronic and high-risk conditions based on severity and cost to support proper risk scoring and reimbursement. Below are the major HCC diagnosis categories commonly used in healthcare billing and risk adjustment:

Cardiovascular Conditions

These categories include serious heart conditions requiring continuous monitoring and treatment.

  • HCC 85 – Congestive Heart Failure: Includes systolic and diastolic heart failure with high hospitalization risk.

  • HCC 96 – Cardiac Arrhythmias: Includes abnormal heart rhythms such as atrial fibrillation (ICD-10: I48.91).

These conditions often require medication, cardiac monitoring, and specialist care.

Metabolic Conditions

These include endocrine disorders affecting multiple body systems.

  • HCC 18 – Diabetes with Complications: Includes diabetes with CKD, neuropathy, retinopathy, or vascular complications.

Diabetes with complications significantly increases patient risk scores.

Respiratory Conditions

These categories include chronic lung diseases affecting breathing.

  • HCC 111 – Chronic Obstructive Pulmonary Disease (COPD): Includes emphysema and chronic bronchitis.

Patients often require inhalers, oxygen therapy, and pulmonary follow-up.

Renal Conditions

These include chronic kidney disease and advanced renal failure stages.

  • HCC 134 – CKD Stage 5

  • HCC 135 – End-Stage Renal Disease

  • HCC 136 – CKD Stage 4

  • HCC 138 – CKD Stage 3

Severity is determined based on kidney function (GFR levels).

Cancer Conditions

These include active cancers requiring treatment or management.

  • HCC 8 – Metastatic Cancer

  • HCC 9 – Lung and Severe Cancers

  • HCC 11 – Colorectal, Bladder, and Other Cancers

  • HCC 12 – Breast and Prostate Cancer and Other Organ Cancers

Only active cancer diagnoses qualify for HCC reporting and risk adjustment. Want to know how HCC Coding maximizes reimbursement? Find out here:

Risk Adjustment Factor (RAF) Score in HCC Coding Model

The HCC RAF score is calculated based on patient demographics and documented HCC conditions. Each HCC category has a CMS-assigned risk weight, and the combined score is used in Medicare risk adjustment to estimate healthcare costs and determine reimbursement.

Typical RAF score components:

Component RAF Value Example
Age 72 0.45
CHF (HCC 85) 0.33
Diabetes complication (HCC 18) 0.29
CKD Stage 4 (HCC 136) 0.41
Total RAF Score 1.48

Higher RAF scores indicate higher expected medical expenses and reimbursement levels. The HCC Medical Abbreviation system ensures risk scores accurately reflect patient severity and cost burden.

Importance of HCC Codes in Healthcare and Medicare

The importance of HCC coding lies in its ability to link patient diagnoses with reimbursement accuracy and healthcare planning.

Key benefits include:

  • Accurate risk stratification

  • Improved financial planning

  • Better population health management

  • Enhanced clinical documentation improvement and compliance

Correct coding also supports quality measurement and regulatory compliance.

Common Mistakes in HCC Medical Coding

Several HCC Coding Mistakes can lower RAF scores and reduce reimbursement. Avoiding these errors ensures proper risk adjustment and compliance.

  1. Missing Annual Documentation

    HCC conditions must be documented at least once every 365 days. If a chronic condition like diabetes or CHF is not reported in the current year, it will not count toward risk scoring. Proper HCC documentation supports valid chronic condition reporting and reimbursement.

  2. Using Unspecified Diagnosis Codes

    Unspecified codes may not map to HCC categories and can result in missed risk capture.
    Example:

    - Incorrect: E11.9 – Diabetes without complications

    - Correct: E11.22 – Diabetes with CKD (maps to HCC 18)

    Using specific HCC diagnosis codes ensures correct risk adjustment.

  3. Incomplete Clinical Documentation

    Providers must document active management such as evaluation, monitoring, or treatment. Missing details in healthcare coding and billing can lead to incorrect code mapping and lower RAF scores. Proper documentation ensures accurate HCC reporting and compliance.

Get Expert HCC Coding Support

Proper HCC coding ensures correct RAF score calculation, compliance, and appropriate reimbursement in risk adjustment programs. Incomplete documentation or incorrect diagnosis coding can lead to missed revenue and reporting gaps.

Our expert HCC Coding Services help improve coding efficiency, close documentation gaps, and optimize risk adjustment outcomes.

Contact MBW RCM today to learn how our experts can support your HCC coding and reimbursement needs.

FAQs: HCC Coding & Risk Adjustment in Healthcare

What is HCC coding in healthcare? +
HCC (Hierarchical Condition Category) coding maps ICD-10 diagnosis codes to HCC categories to calculate Risk Adjustment Factor (RAF) scores and determine reimbursement.
How often must HCC conditions be documented? +
HCC conditions must be documented and coded at least once every calendar year (365 days) to be included in risk adjustment calculations.
What conditions qualify for HCC coding? +
Chronic conditions such as diabetes, heart failure, COPD, chronic kidney disease (CKD), and cancer commonly qualify for HCC coding when properly documented.
What is the difference between ICD-10 and HCC codes? +
ICD-10 codes identify specific diagnoses, while HCC codes group those diagnoses into risk-adjusted categories used to calculate reimbursement levels.
How many HCC categories are there? +
CMS HCC Version 28 includes approximately 115 HCC categories derived from ICD-10 diagnosis codes.

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