Unit 6: Severity Adjustment

Unit 6 #2
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Unit 6 #2
Severity adjustment, also referred to as risk adjustment, intensity adjustment or adjustment for health status is a statistical procedure in healthcare that reflects on the underlying health status and health spending of the people enrolled in an insurance plan, especially when the insurer is evaluating their healthcare outcomes or costs associated with healthcare. On the other hand, the purpose of the severity adjustment is to compare people and populations. Apparently, there are different risk factors for people and populations; thus, people and populations often use different quantities or amounts of healthcare resources. As such, there are analyses that focus on the actuaries, which may include utilization, pricing, and quality of healthcare provider, efficiency, effectiveness and outcomes. Because of the difference, there is a need to compare the people and populations, and severity adjustment is widely used on modern healthcare o...