HomeBlogNo Black Boxes: Why Explainable AI is Non-Negotiable in Risk Adjustment

No Black Boxes: Why Explainable AI is Non-Negotiable in Risk Adjustment

Published on 2025-07-22 by Chief Product Officer3 min read

The promise of Artificial Intelligence is transformative, but in the high-stakes, regulated world of risk adjustment, a "black box" solution is a liability, not an asset. A black box AI is one that provides an output—like a suggested HCC—without revealing the logic or evidence it used to get there. For a coder, this is unusable. For a compliance officer, it's indefensible.

Submitting a code to CMS based on a mysterious algorithm's suggestion is a gamble you can't afford to take. If you can't explain why a code was chosen, you cannot defend it in an audit. This is why the principle of Explainable AI (XAI) is at the very core of the MedChartScan platform.

The Problem with Unexplained Suggestions

Imagine an auditor asks you to justify a specific HCC. A response of "because the AI told us to" is a direct path to a takeback. A black box approach creates several critical problems:

  • It's Unauditable: Without a clear link between the code and the evidence in the source document, you have no audit trail.
  • It Erodes Trust: Coders are experts. They will not (and should not) trust a tool that doesn't show its work. This leads to poor adoption and wasted investment.
  • It Hides Errors: If the AI makes a mistake in its reasoning, a black box system makes it impossible to identify, correct, or learn from that error.

This is why our entire philosophy is built around making AI a transparent assistant, not an opaque authority.

The MedChartScan Approach: Evidence-Based and Transparent

We believe that the AI's primary job is to build a clear, logical case for a human expert to validate. Our platform is designed to be fully transparent at every step.

  1. Hyperlinked Evidence: Every single suggestion our AI surfaces is directly hyperlinked to the exact phrase, sentence, or data point in the source document that supports it. The evidence is highlighted for the coder instantly.

  2. Clear Rationale: The platform provides a simple, logical rationale for its suggestion, such as "Positive microalbuminuria with Jardiance use may confirm diabetic nephropathy." This mirrors the thought process of a human coder, making it intuitive to review. You can see a real-world example of this in our post on AI-supported clinical reasoning.

  3. Human-in-the-Loop by Design: The system is built to require human validation. The AI presents its findings, but the certified coder makes the final, authoritative decision. This is the foundation of our audit-proof workflow.

By making our AI explainable, we transform it from a potential risk into a powerful tool for collaboration. It empowers coders by giving them a reliable co-pilot that accelerates their review process without ever undermining their expertise or judgment.

In risk adjustment, trust is everything. And trust requires transparency.

*Want to see how our transparent, evidence-based AI works in a live environment? Schedule a demo with us today._

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