ED Coding & Reimbursement Alert - 2019 Issue 15
Reader Question: How Do Different Payers’ Define Medical Necessity?
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Article Overview
This reader Q&A reviews how medical necessity is defined by the AMA and by CMS for Medicare purposes. It is relevant for billing, coding, compliance, and clinical staff who need to understand why payer determinations may differ from provider expectations. The article focuses on general definitions and the policy context behind denials, without providing code-specific guidance.
Why This Topic Matters
Medical necessity is a common basis for claim denial, prior authorization review, and payer policy disputes. Understanding the broad definitions used by major organizations helps readers interpret denials and align documentation and coverage review processes.
What You Will Learn
- How medical necessity is framed by professional and government sources
- Why payer determinations can differ from a provider’s clinical judgment
- The role of federal coverage language in medical necessity discussions
- How medical necessity affects claim review and denial contexts
Who Should Read This
- Medical coders
- Billing staff
- Compliance staff
- Physicians
- Practice administrators
- Revenue cycle staff
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