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A3. CMS-HCC Risk Adjustment Model For CY 2026, CMS is calculating risk scores for MA organizations entirely with the 2024 CMS- HCC model. The CY 2026 impact on MA risk scores, relative to the blend in CY 2025, is projected to be –3.01 percent, which represents a $12.88 billion net savings to the Medicare Trust funds in CY 2026. The 2020 CMS-HCC model (2015 denominator) and the 2024 CMS- HCC model (2020 denominator) have different denominator years (i.e., number of years of risk score trend). Therefore, risk scores under the models are not comparable when determining impacts due to the different number of years of risk score trend. In order to isolate the impact of the model transition, the risk scores being compared were each appropriately normalized to remove the impact of FFS risk score trend. When estimating the impact of fully transitioning to the 2024 CMS-HCC model, the impact takes into account the portion of the difference between benchmarks and bids that the government retains, and the portion of the program costs covered by Part B premiums. A4. ESRD Risk Adjustment Model For CY 2026, CMS is continuing the use of the ESRD risk adjustment models used for MA payment in CY 2025. Therefore, no economic impact is applicable. A5. Frailty Adjustment for FIDE SNPs For CY 2026, CMS is calculating frailty scores for FIDE SNPs with the 2024 CMS-HCC model frailty factors, consistent with Part C risk adjustment. Additionally, CMS is determining the dual status of a beneficiary using data from systems of record (i.e., the MMA State files, the Point of Sale data, and the Commonwealth of Puerto Rico monthly Medicaid files), as has been done historically, rather than using full Medicaid factors for all beneficiaries, as was done for CY 2025 secondary to differences in the enrollment requirements for FIDE SNPs during the survey data collection period (CY 2024) and the calendar year (CY 2025). The CY 2026 impact of transitioning to frailty scores calculated using the 2024 CMS-HCC model frailty factors entirely, relative to the blend used for CY 2025, and using frailty factors for beneficiaries based on systems of record rather than only full Medicaid factors for all beneficiaries, is a change in frailty scores of -0.58 percent, which represents a net savings of less than $10 million dollars to the Medicare Trust Funds in CY 2026. This impact takes into account the portion of the difference between benchmarks and bids that the government retains, and the portion of the program costs covered by Part B premiums. A6. MA Coding Pattern Difference Adjustment For CY 2026, we will continue to apply the statutory minimum coding pattern difference adjustment (5.90 percent). There is no change in policy from CY 2025 and therefore, the year- over-year impact is zero and no economic impact is applicable.