The Chronic Illness and Disability Payment System (CDPS) is a diagnostic-based risk adjustment model that is widely used to adjust capitated payments for health plans that enroll Medicaid beneficiaries.

DPS uses International Classification of Disease (ICD) codes to assign CDPS Categories that indicate 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.

Medicaid Rx (MRX) is a pharmacy-based system that uses National Drug Classification (NDC) codes to assign MRX Categories based on types of pharmacotherapy. Each category is assigned a MRX weight.

CDPS+Rx is a combination of the CDPS and MRX models.

Source:  UCSD