Medical necessity is a major buzzword commonly referenced in the industry, meaning different things to different parties depending on the context in which it is applied. What medical necessity means to a healthcare provider can be in stark contrast to how insurance payers define it. Medicare defines medical necessity based on the Social Security Act definition: “notwithstanding any other provision of this subchapter, no payment may be made under part A or part B for any expenses incurred for items or services which, except for items and services described in a succeeding subparagraph or additional preventive services … are not reasonable and necessary for the diagnosis or treatment of illness or injury or to improve the functioning of a malformed body member … which are not reasonable and necessary for the prevention of illness, and in the case of hospice care, which are not reasonable and necessary for the palliation or management of terminal illness.”
Medical necessity determinations must be carefully reviewed for their applicability to each unique patient’s circumstances and treatment. In this webinar, we take a deep dive into how payers define medical necessity, discuss various guidelines and medical policies incorporated into payer coverage rules, unpack the utility of local coverage determinations (LCDs) and national coverage determinations (NCDs) in medical necessity determinations, explore the role of accepted standards of medical practice, identify avenues for challenging medical necessity with payers in 2025, and much more.
There is often a major disconnect between how insurance payers interpret and apply medical necessity rules and how healthcare providers and physicians determine what care/treatment is medically necessary. This unfortunate disconnect can have systemic consequences for healthcare organizations. In this webinar, we debunk the most common myths surrounding medical necessity and offer strategies and insights for challenging medical necessity denials and appeals with payers in 2025.