RAF (Risk Adjustment Factor) is a population risk stratification metric used in risk adjustment models to estimate expected healthcare resource utilization for an individual beneficiary relative to an average patient. In outpatient CDI, RAF is driven by a combination of demographic elements (such as age/sex and eligibility/status factors) and—critically—documented, coded conditions that map to risk categories (e.g., HCCs). The intent is not to “predict the provider’s reimbursement” for the current year in a direct, visit-by-visit sense; rather, RAF contributes to actuarial projections of expected cost and supports payment benchmarking and budget setting in value-based arrangements (e.g., Medicare Advantage and certain shared savings models). RAF is also not based only on demographics (eliminating option B) and it does not determine reimbursement for each individual office visit (eliminating option D). ACDIS outpatient CDI emphasizes that accurate, specific documentation and coding of active, clinically supported conditions improves the accuracy of RAF, which in turn better aligns projected costs and comparisons across attributed populations.