HCC (Hierarchical Condition Category) coding is a process used by healthcare organizations to identify and document patients' medical conditions in a standardized way. The key points about HCC coding are: HCC coding focuses on diagnosis coding grouped by severity, which has associated risk factors that determine the level of care a patient is expected to need. HCC codes are used by the Centers for Medicare & Medicaid Services (CMS) and private payers to calculate risk-adjusted payments to healthcare providers. Patients with more severe or chronic conditions have higher HCC codes, which result in higher payments to their providers. HCC coding differs from fee-for-service coding, as it does not involve billing for specific medical services. Instead, it involves submitting ICD-10-CM diagnosis codes to CMS or other payers, who then use those codes to calculate the risk-adjusted payment. Accurate and specific HCC coding is critical, as providers are reimbursed based on the complexity of their patient population. Providers must document patients' conditions to the highest level of specificity to receive the appropriate reimbursement. HCC coding requires specialized training, as coders must understand the regulations and guidelines surrounding risk adjustment payment models, as well as how to properly abstract and code diagnoses from medical records. In summary, HCC coding is an essential process for healthcare organizations to accurately document patient conditions and receive appropriate risk-adjusted payments from payers. It is a key component of value-based care models