<div>What is CDPS?</div>

CDPS is a risk adjustment tool used by Medicaid programs to estimate the healthcare costs of beneficiaries with chronic illnesses and disabilities, facilitating more accurate and appropriate allocation of resources. Similar to other risk adjustment systems, CDPS is based on the International Classification of Disease (ICD) diagnosis codes. These codes are used to assign a category indicating the illness burden related to major body systems (e.g. cardiovascular) or types of chronic disease (e.g. diabetes). Within each major category is a hierarchy reflecting both the clinical severity of the condition and its expected effect on future costs. Each of the hierarchical CDPS Categories is assigned a CDPS weight. CDPS weights are additive across major categories.