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Steve Shorr Insurance
Health Insurance Law 

Medical Necessity

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Steve Shorr, President,
CPCU, REBC, RHU

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The Criteria for establishing the medical necessity of a service: appropriate for symptoms, diagnosis, and treatment of a condition, illness, or injury; provided for diagnosis, direct care, or treatment; in accordance with the standards of good medical practice; not primarily for the convenience of the member or member's provider; the most appropriate supply or level of service that can be safely provided to the member. samhsa.gov/

Criteria to cover a procedure

Medically Necessary shall mean health care services that a Physician, exercising professional clinical judgment, would provide to a patient for the purpose of preventing, evaluating, diagnosing or treating an illness, injury, disease or its symptoms, and that are:

In accordance with generally accepted standards of medical practice,
Illinois Dept of Insurance Definition
 

A service is "medically necessary" or a "medical necessity" when it is reasonable and necessary to protect life, to prevent significant illness or significant disability, or to alleviate severe pain.
 CA WIC §14059.5

Grievance Page

 Clinically appropriate, in terms of type, frequency, extent, site and duration, and considered effective for the patient's illness, injury or disease, and

Not primarily for the convenience of the patient, Physician or other health care provider, and not more costly than an alternative service or sequence of services at least as likely to produce equivalent therapeutic or diagnostic results as to the diagnosis or treatment of that patient's illness, injury or disease.


For these purposes, generally accepted standards of medical practice means standards that are based on credible scientific evidence published in peer-reviewed medical literature generally recognized by the relevant medical community, Physician specialty society recommendations and the views of Physicians practicing in relevant clinical areas and any other relevant factors.

Blue Cross ppo_30_eoc Page 108

The Five Dimensions of the Medical Necessity Definition: Industry Practice
  1. The contractual scope of coverage: whether proposed treatment is explicitly included or excluded in the health plan contract
  2. Whether the proposed treatment is consistent with professional standards of practice
  3. Patient safety and setting of the treatment
  4. Whether the treatment is medical in nature or for the convenience of the health professional or patient and family
  5. Treatment cost     samhsa.gov
Tables
Medical Necessity Definitions in Published Literature (See Also Appendix C)
 Managed Care Industry
Case Law (Sorted by Case Name)
State Statutes and Regulations
State Independent Review Statutes and Regulations
State Insurance Laws and IRO Statutes
CIGNA Definitions for Medical Necessity and Generally Accepted Medical Practice

Search Medicare on Medical Necessity

most definitions incorporate the principle of providing services which are "reasonable and necessary" or "appropriate" in light of clinical standards of practice Medicare defines "medical necessity" as services or items reasonable and necessary for the diagnosis or treatment of illness or injury or to improve the functioning of a malformed body member. physicians news.com

Survey - Department of Health & Human Services

View our Grievance Page 
Independent Medical Review (IMR). )
CA Department of Insurance

Sample Letter of Medical Necessity

Medical Policies & Clinical UM Guidelines

Aetna Bulletin on Obesity Surgery (Gastric Bypass)
Cochlear Implants - Hearing
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Pacificare - United HealthCare

Technical Blue Cross forms to get Rx covered

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