Risk Adjustment Factor modeling now shapes financial management in Medicare Advantage health plans because revenue adequacy, provider accountability, benefit planning, and audit exposure depend on defensible risk interpretation. This article examines RAF modeling as a managerial instrument connected with payment accuracy, contract-level liability, forecasting, and regulatory control. The purpose is to explain how RAF-based information supports health plan decisions without reducing the problem to actuarial score production. The study follows a review-practical design based on recent peer-reviewed publications, CMS materials, policy reports, industry analysis, and public payer disclosures. Comparative source analysis, conceptual synthesis, typology, and applied generalization guide the argument. The Results section identifies three functions of RAF modeling: translation of clinical risk into revenue expectations, allocation of liability across provider arrangements, and scenario planning under CMS model revisions and audit pressure. The practical contribution lies in a governance-oriented implementation logic for health plan finance teams.