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CMS-HCC Risk Adjustment Model Normalization Factors: For CY 2026, for all CMS-HCC risk adjustment models, CMS calculated the normalization factors using a five-year multiple linear regression methodology and average historical FFS risk scores from 2020 through 2024. • 2024 CMS-HCC Part C Model: 1.067 • 2017 CMS-HCC Part C Model: 1.187 • 2023 CMS-HCC ESRD Dialysis Model: 1.062 • 2019 CMS-HCC ESRD Dialysis Model: 1.129 • 2023 CMS-HCC ESRD Functioning Graft Model: 1.104 • 2019 CMS-HCC ESRD Functioning Graft Model: 1.203 Sources of Diagnoses for Risk Scores Calculated with CMS-HCC Risk Adjustment Models: • For non-PACE organizations: CMS will continue the policy first adopted for CY 2022 to calculate all risk scores for payment to MA organizations and certain demonstrations using only risk adjustment-eligible diagnoses from encounter data and FFS claims. • For PACE organizations: CMS will calculate risk scores using 10 percent of the risk score calculated using diagnoses from encounter data and FFS claims only (under the 2024 CMS-HCC model and the 2023 CMS-HCC ESRD models) and 90 percent of the risk score calculated using diagnoses from RAPS, encounter data, and FFS claims (under the 2017 CMS-HCC model and the 2019 CMS-HCC ESRD models). RxHCC Risk Adjustment Models: For CY 2026, CMS will implement the updated version of the RxHCC risk adjustment model proposed in the CY 2026 Advance Notice that reflects changes made to the Part D benefit for CY 2026 as a result of the Inflation Reduction Act of 2022 (IRA). • For non-PACE organizations: CMS will implement the RxHCC model calibrated on 2022 diagnoses and 2023 expenditure data that adjusts gross drug costs for maximum fair prices as proposed in the CY 2026 Advance Notice. • For PACE organizations: CMS will implement a blend of the RxHCC model being finalized for non-PACE organizations (i.e., 2022/2023 calibration) and the RxHCC model calibrated on 2018 diagnoses and 2019 expenditure data (i.e., 2018/2019 calibration) that adjusts gross drug costs for maximum fair prices by calculating risk scores as a blend of 10 percent of the risk score calculated using the 2022/2023 calibration and 90 percent of the risk score calculated using the 2018/2019 calibration. RxHCC Risk Adjustment Model Normalization Factors: For CY 2026, for the RxHCC models, CMS calculated separate normalization factors for Medicare Advantage prescription drug (MA- PD) plans and stand-alone Medicare Part D prescription drug plans (PDPs). For the model