What is the primary function of the Risk Adjustment System (RAS)?

The primary function of the Risk Adjustment System (RAS) is to calculate risk scores. This process involves analyzing patient data, such as demographics, medical history, and clinical codes, to determine the expected healthcare costs for an individual. The risk score helps reflect the relative health status of beneficiaries and is crucial for determining how much health plans will receive in terms of reimbursement.

In this context, the calculated risk scores are essential for insurers in managing patient care and financial resources effectively. By accurately assessing the risk associated with each beneficiary, health plans can allocate appropriate resources and implement necessary interventions to improve patient outcomes.

Other choices, while relevant to healthcare administration, do not directly pertain to the core functionality of the RAS. For example, processing audits, storing beneficiary records, and compiling error reports are important functions but serve a different purpose within healthcare operations and do not center on the fundamental aim of calculating and managing risk based on patient data.